The global Booze Battle has begun and Europe could be left devastated

Washington D.C.: When President Donald Trump posted on his truth social that he was going to impose a 200% tariff on wine and champagne coming in from the European Union (EU) in reponse to the Union's tariff's on American whiskey he answered the first broadside on what is sure to be known as the Great Alcohol War of 2025 (tongue firmly in cheek).

Trump's post was replete with the usual All Caps emphases and outrage against the EU that is swiftly becoming the norm: “The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky. If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the U.S."

So what does a possible 200% on wine and champagne mean for the EU?

The EU is one of the largest exporters of wine and champagne to the United States. In 2022, the EU exported approximately $2.1 billion worth of wine (including sparkling wine like champagne) to the US, according to data from the European Commission and trade organizations. This accounted for a significant portion of the EU's total wine exports globally.

France, as the leading producer of champagne and high-quality wines, dominates these exports. In 2022, France alone exported around $1.5billion worth of wine and champagne to the US, making it the largest supplier of wine to the American market. Italy and Spain also contribute significantly, with Italy exporting over $500 million worth of wine to the US in the same period.

Champagne, specifically, is a premium product with a strong presence in the US market. In 2022, the US imported approximately 25 million bottles of champagne from France. The US is the second-largest export market for champagne after the UK, accounting for a substantial share of global champagne sales.

The potential imposition of a 200% tariff on European wine and champagne could severely disrupt this trade. Such a tariff would likely lead to a sharp decline in exports, as the increased costs would make European wines and champagnes significantly more expensive for US consumers. This could also benefit domestic wine producers and non-EU exporters, while posing a major challenge for European winemakers who rely heavily on the US market.