EU and US Trade Tensions Escalate Over Tariffs on Alcohol

The EU's proposed tariffs on American bourbon have prompted threats of steep retaliatory duties from the US, as French Prime Minister François Bayrou calls for urgent negotiations.

• The European Union has proposed tariffs on American bourbon, motorcycles, and boats in response to US duties on steel and aluminum imports.
• US President Donald Trump has threatened to impose 200% tariffs on European wines, champagne, and other spirits if the EU does not reverse its decision.
• French Prime Minister François Bayrou criticized the EU's approach, calling the inclusion of bourbon a 'maladroit' decision based on outdated trade lists.
• Bayrou expressed hope for resolving the dispute through negotiations, emphasizing a 15-day window to find common ground with the US and avoid further escalation.
• The European Commission has signaled openness to dialogue but warned of implementing additional countermeasures if talks fail to yield a resolution.

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