Trump threatens 200% tariffs on French wine and Champagne over Board of Peace snub

US President Donald Trump has threatened to impose tariffs of up to 200% on French wine and Champagne after the French president’s intentions to decline an invitation to join his ‘Board of Peace’ initiative.

On Monday January 19 Donald Trump threatened 200% tariffs on French wine and Champagne over France’s intentions to decline the US leader’s invitation to join his ‘Board of Peace’ project. 

The board was originally designed to oversee the rebuilding of Gaza, but it appears to now be a broader platform for dealing with global conflicts.

When questioned by a reporter about Macron’s position, Trump said: “Well, nobody wants him because he will be out of office very soon.”  

“I’ll put a 200 percent tariff on his wines and Champagnes, and he’ll join, but he doesn’t have to join,” Trump added.

Tariff tensions

France will hold a presidential election in 2027, when Macron’s second five-year term ends. Under the French constitution, he cannot seek a third term.

A source close to Macron told AFP on Monday that France “does not intend to answer favourably” to the invitation to join the board.

A draft charter for the body, seen by Reuters, suggests member countries would be required to contribute $1bn if they wished to retain membership beyond three years. The document also proposes that Trump would serve as the board’s first chairman and oversee membership decisions.

According to the draft, invitations have been sent to around 60 countries, including Russia, India, Belarus and the UK. Critics have raised concerns that the initiative could undermine the role of the United Nations, and have questioned how decisions would be made.

Tariff tensions

Wine and spirits exported from the European Union to the United States currently face a 15% tariff. French producers have been lobbying for this to be reduced to zero since Trump and European Commission President Ursula von der Leyen agreed a US-EU trade deal last summer.

Separately, tensions have risen over Greenland after Washington announced that eight European countries could face a 10% tariff on exports to the US from 1 February unless they support a US proposal to purchase the semi-autonomous Danish territory. The tariff would rise to 25% in June if no agreement is reached.

The US is the largest export market for French wine and spirits, with shipments worth €3.8bn in 2024.

Iran warning

Additionally, Trump announced on 13 January that any country trading with Iran will face a 25% tariff on all business conducted with the United States, according to a post on Truth Social, amid a violent crackdown on anti-government protests in Iran, with thousands feared dead.

The measure is described as effective immediately and final; however, the White House has offered no clarity on how such a tariff would be enforced or which partners would be caught in its net.

The drinks industry is well aware of the impact tariffs can have. In August 2025, a group of 57 alcohol producers, hospitality bodies and suppliers warned that a proposed 15% US tariff on EU goods could wipe almost $2bn off American alcohol sales and put around 25,000 jobs at risk.

Drinks industry reacts

The letter, backed by major producers including Diageo and Pernod Ricard, said higher duties would feed through into higher menu prices, hitting bars and restaurants across the US. 

Indian whisky provides another example. Proposed US tariffs of up to 50% on Indian imports could add between $5 and $10 to the price of a bottle, according to the producer Radico Khaitan. Manufacturers have warned that such increases would weigh on sales in their biggest export market.

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