President Donald Trump on Thursday threatened a 200% tariff on European wine, champagne and spirits after the European Union put a 50% tariff on American whiskey.

The European tariff is expected to go into effect on April 1.

Trump announced the news on Truth Social calling the EU “one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States.”

“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 said. “This will be great for the Wine and Champagne businesses in the U.S.”

The tax on American whiskey was in response to Trump’s 25% tariff on all steel and aluminum imports that began on Wednesday.

The EU was quick to announce countermeasures on up to $28 billion of American goods, including textiles, home appliances and agricultural goods.

“We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs. We are ready to engage in meaningful dialogue,” European Commission President Ursula von der Leyen said in a statement.

Eric Gregory, the president of the Kentucky Distillers Association, commented last week on the wider impact of retaliatory tariffs.

“Unfortunately, the return of retaliatory tariffs on American whiskey will have far-reaching consequences across Kentucky, home to 95% of the world’s Bourbon,” Gregory wrote. “That means hard-working Americans — corn farmers, truckers, distillery workers, barrel makers, bartenders, servers and the communities and businesses built around Kentucky Bourbon will suffer.”

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