European alcohol stocks took a hit after President Donald Trump threatened to impose a 200% tariff on wines, champagnes, and other alcoholic imports from the EU. The move, announced on Truth Social, comes in response to the European Commission’s decision to slap tariffs on $28 billion worth of U.S. goods, including whiskey.
EU Alcohol Giants Feel the Pressure
Luxury beverage stocks reacted swiftly. LVMH Moët Hennessy Louis Vuitton (OTC:LVMUY) fell 1.2%, Pernod Ricard (OTC:PRNDY) tumbled 4.2%, and Davide Campari-Milano (IT:CPR) dropped 2.6%. Investors fear these tariffs could drive up prices and hurt exports, making U.S. alternatives more attractive.
Whiskey Makers Brace for Impact
U.S. brands are also caught in the crossfire. Brown-Forman (NYSE:BF.B), the maker of Jack Daniels, initially fell before recovering 1.7%. Chris Swonger, CEO of the Distilled Spirits Council of the United States, urged Trump to negotiate, calling for “toasts, not tariffs.”
Global Trade Tensions Escalate
The EU has called the tariffs “unjustified” and vowed a measured response. With tensions rising and more retaliatory measures expected, the battle over booze could be just the beginning of a wider trade war.
Looking at TipRanks’ Stocks Comparison tool, we can see that even though U.S.-based Brown-Forman stock rallied 2.2% in the past 24 hours, it is still deemed a Hold by analysts. Meanwhile, EU luxury beverage stocks LVMUY and CPR are rated higher by analysts, who consider both stocks a Moderate Buy.
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