Politico reports on a growing divide within the European Union caused by the ongoing trade conflict with Washington.
The publication notes that tensions among EU member states had already begun before the trade war with the U.S. officially started. One of the main sources of friction is the European Commission’s proposal to impose retaliatory tariffs on American goods worth €18 billion. In response, U.S. President Donald Trump has threatened to impose 200% tariffs on European alcohol exports.
The Brussels plan has sparked the greatest outrage among countries that are major suppliers of alcohol to the U.S.:
Italian Prime Minister Giorgia Meloni warned of a “vicious cycle” of escalation.
French Prime Minister François Bayrou argued that the European Commission was “attacking the wrong targets.”
Ireland’s leader criticized Brussels for what he called an “ill-conceived retaliation scheme.”
Spain and the Netherlands, which also export significant volumes of alcohol to the U.S., have joined in the opposition.
Politico highlights that the EU’s initial unity on trade matters is beginning to crumble even before an agreement on the next tariff package is reached. This package, expected to be introduced in April, is intended as a response to Washington’s new tariffs on steel and aluminum.
Previously, European media warned that the 200% alcohol tariffs threatened by Trump could be a “death blow” for many European producers.
