- India,
- 14-Mar-2025 11:40 AM IST
Donald Trump US: US President Donald Trump has warned the European Union (EU) that if it implements the proposed 50% tariff on American whiskey, the US will impose a 200% duty on liquor, wine and champagne imported from Europe. This statement is part of a series of recent trade policies by Trump, in which he is taking aggressive steps to protect American trade interests.European Union's responseThe European Union had announced a 50% tariff on American whiskey in response to Trump's announcement of imposing tariffs on American steel and aluminum, which is to be implemented from April 1. The EU believes that this step is necessary to protect its economy, but Trump considers this decision unjust against the US.Can a new trade war break out?Trump made it clear through a social media post that if the EU remains adamant on its decision, then the US will also take strong retaliatory measures. He said, "If this tariff is not removed immediately, the US will impose a 200% duty on all wine, champagne and alcohol products coming from France and other countries of the European Union." He claims that this will benefit the American wine and champagne industry, as it will increase the sales of domestic products.Indications of Trump's tough standRepublican leader and US President Trump had already made it clear that he would not take this issue lightly. While talking to reporters in the Oval Office, he said, "Of course, I will respond to it." Since becoming President for the second time in January, Trump has announced to impose additional tariffs on countries like Canada, Mexico, China and India. He argues that America should now impose similar duties on those countries which impose higher taxes on American goods.Sign of global trade warSuch policies can increase tensions in global trade. Many countries have already warned of retaliation. Trade experts believe that if this trade war drags on for long, it can increase instability in global markets and have a negative impact on many industries.Now it remains to be seen whether the European Union reconsiders its decision after Trump's warning. If both sides stick to their tough policies, a major trade war can be seen in the coming months, which will have a profound impact on the global economy.