European Commission President Ursula von der Leyen defended the EU’s decision, stating that it was necessary to protect European consumers and businesses from US trade measures
France and its European partners will not bow to US tariff threats and are committed to defending their industries, French Trade Minister Laurent Saint-Martin said on Thursday. Responding to US President Donald Trump’s announcement of a 200 percent tariff on European wines and alcoholic beverages unless the EU removes tariffs on American whiskey, Saint-Martin vowed that France would stand with the European Commission in resisting economic pressure.
“Donald Trump is escalating the trade war he chose to start. France remains determined to respond with the European Commission and our partners,” he wrote on X.
Trump’s warning follows the EU’s announcement of tariffs on USD 28 billion worth of US goods, including a 50 per cent duty on whiskey, in response to previous American levies on steel and aluminium. The US president urged the EU to withdraw its whiskey tariff, warning that retaliatory measures on European alcohol would be imposed “shortly” if it remained in place. “The EU is one of the most hostile and abusive taxing and tariffing authorities in the world,” Trump said, criticising the bloc’s trade policies.
European Commission President Ursula von der Leyen defended the EU’s decision, stating that it was necessary to protect European consumers and businesses from US trade measures.
The latest tariff threats triggered immediate market reactions, with stock futures falling on Thursday, reversing earlier gains in the S&P 500 and Nasdaq. The Dow Jones Industrial Average also showed signs of further decline, extending losses from the previous day.
The US-EU standoff is part of a broader trade conflict involving other major economies.
Canada previously imposed counter-tariffs on USD 20.7 billion worth of American goods in response to US steel and aluminium duties. Meanwhile, the Trump administration recently doubled tariffs on Chinese imports to 20 per cent, prompting Beijing to retaliate with duties on US agricultural exports.
The escalating disputes have raised concerns about a potential economic downturn. Last week, Goldman Sachs increased its recession probability forecast from 15 per cent to 20 per cent, while Moody’s Analytics raised its estimate to 35 per cent, citing the risks of global trade uncertainty.
