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European alcohol stocks are sinking after President Donald Trump threatened to retaliate against a new tariff on American alcohol with his own massive duties.
The European Union recently hiked its duties on imports of American whiskey to 50%, in a move that the Distilled Spirits Council of the United States called “deeply disappointing.” Trump fired back with a threat to quadruple the size of Europe’s new duties.
“If this Tariff is not removed immediately, 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,” Trump wrote on his Truth Social, saying that U.S. businesses will benefit.
American depositary receipts (ADR) of French wine and spirits companies Pernod Ricard and Remy Cointreau (REMYY-4.54%) fell by 4% and by more than 3%, respectively. Davide Campari-Milano’s ADRs fell by more than 3%.
LVMH (LVMUY-2.40%) (MC-1.82%), which owns Hennessy and other brands, saw its ADRs drop by more than 1%. Dutch brewer Heineken’s (HEINY-2.09%) traded more than 1% lower.
Shares of Anheuser-Busch InBev (BUD-1.69%), the largest brewer in the world and maker of Corona and Budweiser, fell 1% following Trump’s threat. The company on Thursday also denied a report that it planned to cut thousands of jobs this year.
British firm Diageo (DEO-0.45%), which owns Johnnie Walker and Guinness, traded slightly down. Shares of New York-based Constellation Brands (STZ-0.77%) slightly increased, while Kentucky-based Brown-Forman (BF.B+2.12%), the brand behind Jack Daniel’s, rose 1%. Boston Beer Co. (SAM-2.89%) shares fell by more than 1%.
A tariff is a tax on an imported good and paid for by the importing business, not the foreign seller. They’re designed as a protective measure that encourages domestic companies to shift manufacturing back home, while also pushing consumers to buy products made by domestic firms.
The U.S. imported $1.23 billion worth of distilled spirits from the E.U. in 2024, according to the Department of Agriculture. American whiskey exports to Europe grew to $699 million in 2024, according to the Distilled Spirits Council of the United States. After the E.U. hit whiskey imports with retaliatory tariffs in 2018, exports to the largest market for U.S. whiskey fell 20% over the next three years, the Council said.
“Yet again, spirit drinks have become collateral damage in an unrelated trade dispute,” Pauline Bastidon, director of trade and economic affairs at SpiritsEurope, said in a statement Wednesday, ahead of Trump’s retaliation.
“The EU and US spirits sectors stand united in their steadfast commitment to maintaining transatlantic spirits trade tariff-free,” Bastidon added.