Trump's threat against EU liquor has caused dismay among European producers who rely on exports, including French cognac makers already hit with tariffs by Beijing.

Trump said he would impose the tariff if the European Union continues with its plan to impose a 50% tariff on whiskey beginning in April.

The EU has proposed an American whiskey tariff, in response to steel and aluminum tariffs by the U.S. administration, that is expected to go into effect on April 1.