Business
Trump Threatens EU with 200% Tariffs on Wine and Champagne amid Trade War Escalation
March 13, 2025
April 3, 2025
By Evans Momodu
Published 17:17 UK GMT
US stocks dropped sharply after Trump’s new tariff package. In response, the UK released a list of US products that may face retaliatory tariffs due to a 10% levy.
In a press briefing, President Donald Trump unveiled his new package of tariffs, aiming to boost domestic industry and reduce foreign dependence. He compared the United States to a "healing" patient, suggesting that protectionist trade measures are necessary to rebuild the nation’s economy.
However, the announcement immediately rattled investor confidence, triggering a sharp decline across major US stock indexes. Analysts say the uncertainty surrounding global trade relations is fuelling volatility and risk aversion in financial markets.
Across the Atlantic, the UK government is taking steps to respond to the economic threat. In light of the 10% levy imposed by the US, UK officials have released a preliminary list of American products that could be subject to retaliatory tariffs.
While the full list has not yet been finalised, it reportedly includes a variety of consumer goods, agricultural products, and industrial materials, reflecting the UK's intent to defend its economic interests without escalating tensions further.
A spokesperson from the Department for Business and Trade said,
“We are reviewing the potential impact of the US tariffs and exploring proportionate measures to protect UK businesses and workers.”
The latest developments mark a significant escalation in transatlantic trade tensions. Economists warn that a tit-for-tat tariff exchange could lead to higher consumer prices, supply chain disruptions, and slower global economic growth—especially at a time when many economies are still recovering from recent inflation and energy crises.
Investors and policymakers are now closely watching how other international partners might respond to Trump’s protectionist stance, as the potential for a broader trade war looms.
Source: Sky News
Image: Reuters
