Transatlantic Tariff Tango: Franco-American Trade Tensions Rise

French Finance Minister Eric Lombard criticizes potential trade war with the U.S. over proposed EU tariffs on American whiskey, following President Trump's threat to impose a 200% tariff on EU wines. The EU plans retaliatory tariffs on $28 billion of U.S. goods in response to Trump’s duties on steel and aluminium.

On Friday, French Finance Minister Eric Lombard denounced the prospect of a trade conflict between the European Union and the United States, describing it as "idiotic." This statement came after U.S. President Donald Trump threatened a hefty 200% tax on European wines and other spirits if the EU proceeds with its plan to levy tariffs on American whiskey.

Speaking on the France 2 television channel, Lombard expressed little surprise at Trump's threat, indicating that the EU is prepared to retaliate in kind. He emphasized that such aggressive trade tactics could escalate tensions and harm both economies.

The European Union has already outlined measures targeting up to $28 billion in American products, including bourbon, dental floss, and diamonds. These are in direct response to the U.S. imposing a 25% duty on steel and aluminum imports, marking a new chapter in transatlantic economic dynamics.

(With inputs from agencies.)