European wine giants have seen the value of their shares fall, following threats from the US of a 200% levy on alcohol imports.

Global wine brands such as Pernod Ricard, Rémy Cointreau and Moët & Chandon-owner LVMH, have come under pressure after President Donald Trump announced he could impose 200% tariffs on alcohol, including wine and champagne.

The potential move would come as a retaliation against the EU’s introduction of a 50% levy on American bourbon whiskey, which Trump previously described as “nasty”.

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Commenting via social media, Trump wrote: “If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES.”

He added: “This will be great for the Wine and Champagne businesses in the U.S.”

It is understood that the US currently dodges the protected geographical origin rules placed on European products, such as champagne originating from a particular region of France.

Trump’s threat saw shares among leading European drink giants slip, with Pernod Ricard down by almost 4%, Rémy Cointreau drop 3.5% and LVMH dipping by 1.4%.

The US trade war has already sparked concern among global drink giants. Earlier this year, Diageo warned that potential tariffs could disrupt key categories and have a knock-on effect on its wider global business —especially for tequila, which has been a major growth driver, accounting for 12% of Diageo’s volume in the US spirits market.

Elsewhere, the Irish Whiskey Association warned the levies would place a strain on the whiskey industry adding: “There is no winner in a trade war.

“The imposition of tariffs will impact on our businesses and our consumers. Having our sector implicated in this dispute puts jobs, investments and businesses at risk and has the potential to be devastating for Irish Whiskey.”