Merchants worried that a trade war could wreak financial havoc in a region that has a robust business exporting the world’s finest bubbly to the United States.

President Trump threatened to impose 200% tariffs on alcohol from the European Union, one day after the EU said it planned 50% import taxes on U.S. whiskey and other products from April 1, in retaliat

US President Donald Trump has again turned to tariffs as a weapon in international trade disputes, this time threatening a hefty 200 percent levy on wine, champagne, and other alcoholic products from the European Union.

Industry representatives warned that a 200 percent tax on European wines and spirits would halt shipments to the United States and wipe €4 billion off France’s trade balance.

This will be great for the Wine and Champagne businesses in the U.S.," the president proclaimed on Truth Social

President Donald Trump announced plans Thursday to impose a 200% tariff on French champagne and alcohol from European nations, according to CNBC. The move is a response to the European Union's decision to reinstate a 50% tariff on American whiskey.

U.S. exporters face renewed tariff threats as former President Donald Trump proposes a 200% levy on EU wine and liquor, according to CNBC. Data from Trade Partnership Worldwide shows U.S. exports at risk of EU tariffs could surge from $6 billion under Trump’s first-term policies to over $27 billion.