Why Trump's Threatened Champagne Tariffs Could Backfire On The US

American President Donald J. Trump is in the news again today for more tariff talk. In response to information that the European Union has taken steps towards an import tax on American whiskey, President Trump took to the Truth Social platform and came out swinging. In a post calling the EU "one of the most hostile and abusive taxing and tariffing authorities in the World," Trump laid down an ultimatum: if tariffs against American whiskey, much of which is bourbon originating in Kentucky, are levied, he will smack back with a "200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES." He continued to say that doing so would be "great for the Wine and Champagne businesses in the U.S."

It seems that "an eye for an eye" is the prevailing theme of the current American tax and tariff situation, but there is one potential problem with President Trump's threat: America has no domestic Champagne industry. By law, the only grapes that can make up Champagne must come from the Champagne region of France. The name is a protected designation of origin, which means that genuine Champagne simply cannot come from America. What's more, a tariff on imported Champagne could lead to rocketing prices in the U.S., as well as increased pressure on European wine and liquor industries.

If President Trump were to see through his threat to enact crippling tariffs against European wines and Champagne, midnight toasts and clinking flutes at weddings would suddenly get a lot more expensive. Those trying to buy American would be compelled to look at sparkling wines, which the United States does, in fact, produce. Californian sparkling wines are known to be especially fine, with some produced using traditional Champagne methods ... but, keep in mind, they are not, and cannot ever legally be, actual Champagne.

It remains to be seen whether these threatened taxes or tariffs will come to pass, or if they are merely part of an ongoing game of political brinkmanship as President Trump gets his bearings at the start of his second term in office. In the meantime, you might want to stock up on your favorite Champagne while prices are relatively stable. Best care scenario: you have a few extra bottles stashed away for happy occasions. Meanwhile, if you are taking sides in the ongoing spirit-related trade scuffle, here is a list of Canadian whiskies available in the States. Whether to pursue or avoid these brands is up to you.