Donald Trump escalated the trade war on Thursday by threatening massive tariffs on European alcoholic beverages in response to the EU’s retaliatory tariffs on American steel and aluminum. The situation is increasingly spiraling out of control.

In a post on Truth Social, Trump declared that his administration would impose a 200% tariff on alcoholic beverages from the EU unless it repealed the 50% tariff the European government imposed on American whiskey on Wednesday.

“If this tariff is not immediately lifted, the U.S. will soon impose a 200% tariff on all wines, champagnes, and alcoholic products coming from France and other EU-represented countries,” Trump stated. “This will be great for the U.S. wine and champagne industries.”

He went on to describe the EU as one of the most hostile and abusive tax and tariff regimes in the world, created solely to exploit the United States, and called the retaliatory tariff on American bourbon “ugly.”

EU Commissioner Responds: “No Choice but to Strike Back”

On Wednesday, EU Commissioner for Trade and Economic Security Maroš Šefčovič made it clear that the Union would impose sanctions on the U.S. in two stages, stating that the EU had no other option but to respond.

The U.S. tariffs of 25%, effective from today on imported raw materials and goods categorized under “steel and iron” regulations, primarily target Germany, one of the biggest exporters of such products to the U.S.

In response, the EU is preparing tariffs on approximately $28 billion worth of U.S. imports. Of that amount, $19 billion in tariffs will take effect on April 1, essentially reinstating tariffs the EU first imposed on American products during Trump’s first term.

European Commission on Standby

The European Commission appeared ready and quickly responded by reinstating a package of measures that had proven effective in hitting the U.S. in key economic—and political—areas back in 2018, before the pandemic.

At the time, the EU’s countermeasures had political consequences, such as targeting alcohol products from Kentucky, which caused serious trouble for Republican Senator Mitch McConnell, then Senate Majority Leader. The tariffs also affected Harley-Davidson and Levi’s.

The second wave of European tariffs, set to begin on April 1, has not yet specified which American products will be targeted. However, leaks from EU Commission insiders suggest that a draft plan is already prepared and will soon be put to consultation.

According to these leaks, EU leaders have just 15 days to decide on the final product list. Within the European Commission, a specialized task force informally named “Response to Trump” has been in place and fully operational since the Republican’s election victory last November.