Trump keeps up the threats: France faces a possible 200% wine tariff

Trump threatened 200% tariffs on French champagne and wine after President Emmanuel Macron declined his invitation to join the proposed “Board of Peace,” an initiative initially focused on Gaza that has since expanded in scope.

As a result, European stocks fell on Tuesday as concerns over potential new trade tariffs weighed on investor sentiment. The pan-European Stoxx 600 dropped 0.7% shortly after the market opened, with losses recorded across all sectors and major regional bourses.

Trump also attacked Macron personally, saying, “Well, nobody wants him because he’s going to be out of office very soon.”

Paris-listed luxury group LVMH, owner of Moët & Chandon, Dom Pérignon, and Veuve Clicquot, slipped 1.7% in early trading. Meanwhile, French spirits producer Rémy Cointreau, maker of Telmont champagne, fell 2%.

In addition, due to the current geopolitical climate, commodities rose, with gold and silver gaining 3.1% and 7.3%, respectively.

In response to the situation, European leaders have described Trump’s tariff threats as “unacceptable” and are reportedly considering retaliatory measures. France is said to be urging the European Union to activate its most powerful economic response tool, the so-called “Anti-Coercion Instrument.

Benedetta Zimone