Formerly changing gifts, now changing tax attacks.
President Donald Trump is determined to launch a tariff arrow with this time involving alcohol.
On Thursday, the US President threatened the 200% tax on European alcohol after the EU imposed a 50% tax on American alcohol in response to Trump's steel and aluminum tariffs.
Trump threatened to Truth Social that the US would impose a 200% tax on all wine, champagne, and alcohol products from France and the EU country involved if the EU tariff was not withdrawn immediately.
He claimed the move would give local manufacturers an advantage.
What is the effect?
France, the largest US wine exporters, is now facing nightmares - the loss of billions of dollars in the blink of an eye.
The Champagne industry is currently in precautionary mode, while the Irish whiskey lobbyist warns the effects of "crushing."
At the same time, the American liquor company is worried about sales.
Chris Swonger, CEO of Distilled Spirits Council, expressed concern in the industry by stressing that the liquor industry was built for festivals, not taxes.
If this tariff war continues, one thing is definitely - prices are soared, tensions, and American wine fans may have to get pleased with plain water!
