Trump threatens 200% wine tariff if EU does not remove whiskey tariff

U.S. President Donald Trump said on Thursday that he would put a 200% wine tariff on all wines and other alcoholic products coming out of the European Union if the bloc did not remove its tariff on whiskey.

The European Commission said on Wednesday that it will impose counter tariffs on 26 billion euros ($28 billion) worth of U.S. goods from next month, ramping up a global trade war in response to blanket U.S. tariffs on steel and aluminum.

The EU executive said, however, that it remained open to negotiations and considered higher tariffs in no one's interest.

Trump raised the ante in a social media post on Thursday.

"The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky," Trump wrote on Truth Social.

"If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S."

U.S. stock futures moved lower and shares of European spirits makers shares dropped.

The European Commission said it will end its current suspension of tariffs on U.S. products on April 1 and that its tariffs will be fully in place by April 13.