President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned 50% tariff on American whiskey. Wine sellers and importers said a tariff of that size would essentially shut down the European wine business in the U.S.

President Donald Trump on Thursday threatened a 200% tariff on European wine, Champagne and spirits if the European Union goes forward with a planned 50% tariff on American whiskey.

Trump said he would up the ante after the E.U. imposed its own 50% tax on American whiskey, a move that itself was a response to the White House tariff on European steel and aluminum.

Rep. Warren Davidson (R-Ohio) applauded President Trump’s threat to put a 200 percent tariff on wine, Champagne and other alcohol imported from the European Union (EU) if the bloc does not remove a tariff on U.

President Donald Trump on Thursday threatened a 200 per cent tariff on European wine, Champagne and spirits if the European Union goes forward with a planned 50 per cent tariff on American whiskey. Wine sellers and importers said a tariff of that size would essentially shut down the European wine business in the US.

President Trump accused the EU of being “one of the most hostile and abusive taxing and tariffing authorities in the World."

The European tariff, which was unveiled in response to steel and aluminum tariffs by the US administration, was expected to go into effect on April 1.

Warning comes after EU announced retaliatory tariffs on $28bn of US goods in response to US levies on steel, aluminium.