Trump’s Treasury chief on 200% EU tariff threat: ‘Not sure why that’s a big deal’ for markets

Trump’s Treasury chief on 200% EU tariff threat: ‘Not sure why that’s a big deal’ for markets


Treasury Sec. Bessent on 200% EU alcohol tariff threat: 'Not sure why that's a big deal' for markets

U.S. Treasury Secretary Scott Bessent on Thursday said Wall Street should shrug off President Donald Trump’s latest threat to impose steep tariffs on foreign trading partners.

Asked on CNBC’s “Squawk on the Street” about Trump’s threat to ratchet up tariffs on European alcohol, Bessent suggested the move should have little impact on stocks.

“One or two items with one trading bloc, I’m not sure why that’s a big deal for the markets,” said Bessent.

Earlier in the day, Trump had warned the European Union that he would slap 200% tariffs on European alcohol exports — including all wines and French Champagnes — unless the bloc dropped its own proposed duties on American whiskeys.

Trump called 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” in a Truth Social post threatening the 200% tariff.

Read more CNBC politics coverage

On Wednesday, the EU unveiled a new plan to impose a 50% tariff on U.S. whiskey, beginning on April 1. The liquor tariff is part of a broader set of proposed import duties on American products.

The European tariffs were issued in retaliation for Trump’s 25% tariffs on all U.S. imports of steel and aluminum, which took effect Wednesday.

Bessent did not answer a question about whether Trump’s Thursday announcement was “premeditated,” or whether the Cabinet secretary was told about it in advance.

Major stock indexes continued to slide Thursday morning, deepening a weekslong sell-off fueled at least in part by fears and uncertainty surrounding Trump’s tariff-heavy economic agenda.

Don’t miss these insights from CNBC PRO



Source

Trump’s trade deals and tariffs are on the chopping block in court. What happens next
Politics

Trump’s trade deals and tariffs are on the chopping block in court. What happens next

U.S. President Donald Trump and British Prime Minister Keir Starmer react after picking up the trade agreement with the U.K. papers that Trump dropped as they speak to the media during the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025. Kevin Lamarque | Reuters President Donald Trump’s sweeping tariff powers and recent trade deals […]

Read More
Trump arrives in Scotland for golf and bilateral talks as EU trade deal nears
Politics

Trump arrives in Scotland for golf and bilateral talks as EU trade deal nears

Members of the police walk near the clubhouse of Trump Turnberry resort, during U.S. President Donald Trump’s visit to Scotland, in Turnberry, Scotland, on July 26, 2025. Phil Noble | Reuters U.S. President Donald Trump, dogged by questions about his ties to disgraced financier and sex offender Jeffrey Epstein, arrived in Scotland on Friday for […]

Read More
FEMA to send states 8 million to build migrant detention centers
Politics

FEMA to send states $608 million to build migrant detention centers

An aerial view of a migrant detention center, dubbed “Alligator Alcatraz,” is seen located at the site of the Dade-Collier Training and Transition Airport in Ochopee, Florida on July 7, 2025. Chandan Khanna | AFP | Getty Images The Federal Emergency Management Agency is preparing to send $608 million to states to construct immigrant detention […]

Read More