WASHINGTON (NEXSTAR) - President Donald Trump is escalating the trade war with Europe, threatening steep tariffs on imported alcohol.
It's the latest move in the tense back-and-forth between the U.S. and the European Union.
President Trump is now warning that he may hit European wine and spiri
ts with a 200% tariff if the EU doesn't back down from their tariff threats.
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"We've been ripped off for years, and we're not going to be ripped off anymore. I'm not going to bend at all,” said Trump.
It all started when he announced 25% tariffs on foreign steel and aluminum.
European Union leaders responded with a plan to place a 50% tariff on American whiskey starting in April.
President Trump says if they do, the U.S. will hit back with a 200% tariff on European wine, champagne and spirits.
The Trump administration says any pain will be temporary and insists the taxes on imported goods will boost American manufacturing and benefit the economy.
“We've got strategic industries we've got to have. We want to protect the American worker. A lot of these trade deals haven't been fair,” said Treasury Secretary Scott Bessent.
E.U. officials call this a lose - lose situation.
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"We call on the US to immediately revoke the tariffs imposed yesterday, and we want to negotiate to avoid tariffs in the future,” said EU Commission Spokesperson Olof Gill.
Congressman Morgan McGarvey (D-Ky.) says he's especially worried the tariffs will hit his state's bourbon industry.
“They raise our costs at home, and they hurt people in terms of their jobs,” he said.
He argues the Trump administration's constant back and forth on tariffs is harmful, too.
“We know these tariffs are devastating and I think the biggest question we're asking right now is, 'for what?' what is the long-term strategy here? McGarvey asked.
The Trump administration is also imposing separate tariffs on Canada, Mexico and China and is planning a new round of reciprocal tariffs on April 2nd. ...read more read less
