The ongoing trade war between the United States and other major economies has escalated once more, with Trump threatening huge tariffs on European alcohol imports
The ripple effects of a global trade war perpetrated by Donald Trump are reaching far and wide, with a variety of markets showing signs of strain and several major economies fearing recession.
On Thursday, Trump took to Truth Social to threaten a 200% tariff on alcohol imports from Europe, the latest jab in a tit-for-tat trade war that has been steadily escalating in recent weeks.
The fresh threats are a retaliation to a 50% tariff placed on roughly 26 billion euros worth of U.S. imports by the European Union, originally imposed in response to American tariffs on aluminum and steel from mainland Europe.
Announcing the newest levies, Trump branded the European Union “one of the most hostile and abusive taxing and tariffing authorities in the world”, accusing it of “taking advantage of the United States”.
“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,” he declared.
The United States economy has been the first to suffer from the ongoing trade war, with recession fears looming as several major stock market indices experience major losses.
Indeed, as of Thursday afternoon, the S&P 500 has shed nearly 4% of its value in the past five days, while losses for the Nasdaq Composite topped 4.25%.
European economies reeling from tariffs
But the impacts of the tariff war are also being felt across the Atlantic, with Germany beginning to fear a recessionary climate.
Europe’s largest economy has already been stagnating due to a combination of the Covid-19 pandemic and the energy crisis triggered by sanctions on Russia. According to Germany central bank Presiden Joachim Nagel, this climate could worsen amid the trade war with the United States.
“Now we are in a world with tariffs, so we could expect maybe a recession for this year,” Nagel said.
But Nagel went on to warn of the economic strife awaiting the United States, arguing that “the price that has to be paid is the highest on the side of the Americans”.
Indeed, the U.S. economy is showing signs of strain beyond just equities, with oil prices falling in accordance with growing fears of a recession.
Brent oil futures expiring in May 2025 fell by 0.8%, while West Texas Intermediate crude futures declined by nearly 1%. Overall, oil has suffered steep losses in 2025.
