US and EU Trade Dispute Escalates: Tariffs on Whiskey and Steel Trigger Retaliation

The trade conflict between the United States and the European Union is intensifying, with tariffs on whiskey and steel becoming central points of contention. The EU plans to impose tariffs on American whiskey and other products in response to the U.S.'s 25% tariffs on steel and aluminum imports, which took effect on Wednesday. President Trump threatened to impose 200% tariffs on European goods if the EU does not immediately remove its 50% tax on American whiskey, echoing his argument that metal tariffs will revive American production. He accused the EU of being a hostile and abusive tax authority created to take advantage of the U.S. The alcoholic beverage sector has become a focal point in this trade dispute. In 2023, the EU accounted for 40% of U.S. spirits exports, while the U.S. absorbed one-third of European wine and spirits exports. Industry associations like the Distilled Spirits Council of the United States and SpiritsEurope have urged leaders to halt the cycle of tariffs. Furthermore, Canada has filed a complaint with the World Trade Organization (WTO) against the 25% tariffs imposed by the U.S. on steel and aluminum. Canada argues these measures are inconsistent with U.S. obligations under international trade law. Canada is the primary supplier of steel and aluminum to the U.S.