EU foreign policy chief Kaja Kallas said that China is “laughing on the side” and will likely benefit from the current trade issues between the US and its European trade partners. According to a Bloomberg report , Kallas mentioned from the ‘sidelines’ of the Group of Seven meeting in Canada that China is “laughing on the side” over the ongoing tariff issues between the United States and European countries. China is indirectly “benefiting from the US having a trade war with Europe.” Group of Seven meeting in Canada, Source: X, kajakallas Kallas’s statements came hours after US President Donald Trump threatened to enforce 200% taxes on alcoholic drinks like wine and champagne from France or other EU countries. This was Trump’s response to the EU plan to impose tariffs on American whiskey products. The EU retaliated against the US for officially announcing tariffs on steel and aluminum . Regarding the back-and-forth tariff threats, Kallas said that the European Union wants to “keep a cool head” and avoid escalating inflation. However, she emphasized, “Of course, we are ready to act and defend our interest when we need to.” The US stock market faced a three-week major selloff, and the drop continued on Thursday as investors showed concerns about inflation due to the tariff threat. The S&P has reached its lowest in six months, leading to a correction. European-manufactured alcoholic beverages also experienced a decrease in stocks. This included LVMH, the owner of champagne house Moët & Chandon, and Veuve Clicquot, with shares down by 2.2%. Cognac by Remy Cointreau SA fell by 4.5%. Moreover, Pernod Ricard fell by 3.6%. EU’s Kaja Kallas sided with Ukraine after the Trump-Zelenskiy clash Earlier on Thursday, Putin said that he is willing to discuss Ukraine’s ceasefire with the US. However, he warned that any deal should present a long-term war resolution. Kallas responded to Putin’s comments by saying, “We have seen the ceasefires before, and Russia has never kept those agreements.” She implied that it is now up to Moscow to show goodwill. She posted strong comments on social media regarding the recent clash between Trump and Ukraine’s Zelenskiy in the White House. Kallas, who was the former Estonian prime minister, said in her post, “The free world needs a new leader” and “it’s up to us, Europeans, to take this challenge.” Ukraine is Europe! We stand by Ukraine. We will step up our support to Ukraine so that they can continue to fight back the agressor. Today, it became clear that the free world needs a new leader. It’s up to us, Europeans, to take this challenge. — Kaja Kallas (@kajakallas) February 28, 2025 She has stated multiple times that Europe’s involvement in any peace talks between Russia and Ukraine is needed. Kallas faced an unexpected diplomatic challenge when a meeting with U.S. Senator Marco Rubio was canceled at the last minute, officially due to “scheduling issues.” This was a setback in her efforts to strengthen diplomatic ties with the U.S. Despite the fact that a one-on-one meeting couldn’t be possible between the two parties, Kallas said that she had “very positive” interactions with Rubio during meeting breaks. 200% tariffs on EU alcohol will affect wineries in the US Wine sellers and importers believe Trump’s potential tariff will end the European wine market in the U.S. Ronnie Sanders, the CEO of Vine Street Imports in New Jersey, said in an AP News report , “I don’t think customers are prepared to pay two to three times more for their favorite wine or Champagne.” The president of Zachys, a fine wine retailer, Jeff Zacharia, said that 80% of his wine is European. US wine isn’t enough to match the demand; therefore, importers rely on European wines. Zacharia says, “This is just going to have a major negative impact on the whole U.S. wine industry in all aspects of it, including U.S. wineries”. According to IWSR, a global data provider related to alcohol, in 2023, 17% of the wine consumed in the United States was imported from the EU. That percentage makes up 7% of Italy and 5% of French cognac, wine, and vodka. The US Department of Agriculture reported that alcoholic beverages imported into the US during 2022 made up 14% of US agricultural imports worth $26.6 billion. In the same year, the US exported $3.9 billion worth of wine, beer, and distilled spirits. Cryptopolitan Academy: Coming Soon - A New Way to Earn Passive Income with DeFi in 2025. Learn More
