That’s because last week U.S. President Donald Trump threatened a tariff of that amount on European wine, Champagne and other spirits if the European Union went ahead with retaliatory tariffs on some U.S. products. The top wine producers in Europe could face crippling costs that would hit smaller wineries especially hard.

President Donald Trump has threatened a 200% tariff on all alcoholic products shipped from the European Union, dismaying drinkers, restaurateurs, bar owners and suppliers across the US.A reciprocal tariff-free trade agreement that has existed between the EU and the US since 1997 could be ripped up as a consequence of Trump’s anger at a European levy on “America’s native spirit” — otherwise known as bourbon.

President Donald Trump on Thursday threatened to impose a massive tariff on European alcohol in response to the European Union’s retaliation against his steel and aluminum tariffs – a tit-for-tat escalation of a trade war that could easily get out of hand.