<div> <div> <p>You may need to say goodbye to your favorite champagne and cognac.</p> <p>Imported wine, champagnes, and other alcoholic products from the European Union are the latest targets of President Trump's tariff threats.</p> <p>On Thursday morning, President Trump posted on Truth Social that if the EU didn't remove a 50% tariff on whiskey, the US would place a 200% tariff on wine, champagnes, and other alcoholic products. The whiskey tariff, set for Apr. 1, is part of retaliation for the US putting a 25% tariff on steel and aluminum.</p>  <p>If it goes into effect, the whopping 200% tariff could &#34;essentially eliminate&#34; imports of these types of products in the United States, Needham &amp; Company analyst Gerald Pascarelli told Yahoo Finance.</p> <p>&#34;A company is not going to ship it on a 200% tariff,&#34; Pascarelli said. The duty also &#34;increases the likelihood that you're going to get a global trade war with collateral damage, and that's not going to be good for the sector,&#34; he added.</p> <p><em>Read more: </em>What Trump's tariffs mean for the economy and your wallet</p> <div><section><div><span class="exchange yf-wk4yba"><span>NYSE - Nasdaq Real Time Price</span> <span>•</span> <span>USD</span> </span> <div> <section><h1> (BF-B)</h1> </section> <div><div> <div></div> <span class="following-btn yf-1joiwjn">Follow</span> <div id="menu-23"></div> </div>    View Quote Details </div></div></div> <div><section>  <div><section><div><div><span class="base yf-ipw1h0">34.82 </span></div> <div><span class="base yf-ipw1h0">- </span></div> <div><span class="base txt-positive yf-ipw1h0">+(1.81%) </span></div></div> <div> <span class="yf-vednlp"><span class="base yf-ipw1h0">As of 11:46:24 AM EDT. Market Open. </span> </span> </div> </section> </div> </section></div> </section> <section><div><span class="symbol current yf-1ikrnzs">BF-B</span> <span class="symbol comp comp-1 yf-1ikrnzs">RI.PA </span><span class="symbol comp comp-2 yf-1ikrnzs">DEO </span></div> <div> Advanced Chart </div> <div><div></div> <div></div></div> </section></div> <p>Year to date, shares of American whiskey maker Brown-Forman (BF-B), the world's second-largest wine and spirits seller Pernod Ricard (RI.PA), and scotch and spirits maker Diageo (DEO) have dropped 8%, 11%, and 15%, respectively.</p> <p>A spokesperson from Brown Forman told Yahoo Finance, &#34;We are pleased that [European Union] President von der Leyen and Trade Commissioner Šefčovič expressed a desire to negotiate with the U.S. and are hopeful the two sides will reach a constructive resolution before the tariffs take effect on April 1.&#34;</p>  <p>&#34;The tariff conversation is bigger than Brown-Forman and our industry, and it’s evolving rapidly,&#34; the spokesperson added.</p> <p>Brown Forman said it's &#34;working closely&#34; with spiritsEurope and the Distilled Spirits Council of the United States. LVMH, which owns champagne brands Moët &amp; Chandon and Veuve Clicquot, did not immediately respond to request for comment. Pernod Ricard has not yet released a statement.</p> <p>On Wednesday, spiritsEurope trade and economic affairs director Pauline Bastidon emphasized that this is not the first time it's seen this sort of retaliation.</p> <p>&#34;Yet again, spirit drinks have become collateral damage in an unrelated trade dispute,&#34; she said.</p> <p>In 2018, the EU imposed a 25% tariff on American whiskey as part of retaliatory tariffs during the first Trump administration's steel and aluminum tariffs. Given this gives a sense of déjà vu, Pascarelli said the valuation of Brown-Forman shares may have already priced in the risk of tariffs.</p> </div> <div> <span>Story Continues</span> </div> <div> <p>In January, Tak Niinami, the CEO of Suntory Holdings, which owns bourbon brands Jim Beam, Maker's Mark, and Basil Hayden, told Yahoo Finance at the World Economic Forum, &#34;We are preparing for that tariff from the European continent and vice versa. We've been preparing for it because that dispute has been studied well before.&#34;</p> <figure class="yf-8xybrv"><div> <div></div></div> <figcaption>Bottles of the American whiskey Jack Daniels are offered for sale in a liquor store on Nov. 27, 2023, in Chicago, Illinois. (Scott Olson/Getty Images) <span class="caption-separator yf-8xybrv">·</span> <span>Scott Olson via Getty Images</span></figcaption> </figure> <p>In the meantime, champagne and wine lovers may start stocking up.</p> <p>&#34;French wines and champagnes are already the most expensive in the market,&#34; Pascarelli said. The tariffs &#34;would make it prohibitively expensive for almost every consumer. ... You might see some pre-buying right now ... on fear that [the price of] some of their favorite champagne is going to go up.&#34;</p> <p>Meanwhile, beer maker Molson Coors' (TAP) shares are up 3% year to date, as its US-based production shields it from the risk of tariffs, per Pascarelli.</p> <p>It's a far different story for Constellation Brands (STZ), whose shares are down 17% this year.</p> <p>&#34;Tariffs are certainly a headwind to Constellation Brands,&#34; he added, as roughly 86% of Constellation Brands' sales are Mexican beer. &#34;Constellation Brands imports every single drop of beer that it sells in the United States from Mexico ... that's going to impact their entire beer business.&#34;</p> <p>—</p> <p><em>Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @</em>BrookeDiPalma<em> or email her at bdipalma@yahoofinance.com.</em></p> <p>Click here for all of the latest retail stock news and events to better inform your investing strategy</p></div>  </div>

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<p>President Trump's threat of a 200% tariff on EU wine and alcohol could lead to significant price increases and potential shortages for U.S. consumers. This move is in retaliation for the EU's 50% tariff on American whiskey. Analysts warn that such tariffs could eliminate imports and escalate a global trade war. Companies like Brown-Forman and Pernod Ricard are closely monitoring the situation, with some consumers already stockpiling their favorite champagnes. Meanwhile, U.S. beer producers like Molson Coors may benefit from the tariffs, while Constellation Brands faces challenges due to its reliance on Mexican imports.</p>

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Trump's 200% tariff threat on EU wine, alcohol would remove the products from the US Consumers may begin to stockpile as their favorite champagnes could potentially surge in price.