Investing.com -- Shares of Pernod Ricard SA (EPA:PERP) tumbled by 2.6%, while Remy Cointreau (EPA:RCOP) and Davide Campari (LON:0ROY) Milano SpA (BIT:CPRI) saw declines of 3.6% and 3.1%, respectively, during today’s European trading session after U.S. President Donald Trump threatened to impose 200% tariffs.
High volatility in shares of these spirits producers comes in the wake of Trump threatening to impose a 200% tariff on wines, champagnes, and other alcoholic products from France and other European Union countries if the EU does not remove its newly implemented 50% tariff on whisky.
The EU’s tariff on whisky, which Trump describes as "nasty," has escalated trade tensions, prompting his call for a substantial retaliatory tariff that could heavily impact European alcohol exporters.
Trump aired his grievances on Truth Social, criticizing the EU for what he perceives as unfair treatment towards the United States.
The U.S. is a significant market for European spirits, and such drastic tariff increases could lead to a decrease in demand, higher prices for consumers, and strained profit margins for companies like Pernod Ricard, Remy Cointreau, and Davide Campari Milano.