If tariffs on French macarons and Italian Parmigiano-Reggiano weren't enough, Europhiles and the country club set are poised to take another big hit — with French bubbly.
“If this Tariff [on US whiskey] 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,” President Trump declared on Truth Social Thursday morning, following a move by the EU with reciprocal tariffs .
Sacrebleu.
Though duties imposed on Italian cheeses and French champagne are causing some dismay, most big European exports to the US are more industrial — think finished manufactured goods like pharmaceutical products, machinery, and autos.
Just this morning, another maker of luxury goods — Ferrari ( RACE ) — said it will have to respond to the tariff threat. After all, the wealthy don’t like to waste money either.
“We are ready with some countermeasures,” Ferrari CEO Benedetto Vigna said at CNBC’s Converge Live event in Singapore on Thursday morning. “We are in a scenario planning phase to manage as best whatever will happen,” Vigna said, without adding any details.
Read more: What Trump's tariffs mean for the economy and your wallet
Ferrari, which only produces its cars from its factory in Maranello, Italy, is facing a potential 25% tariff on European autos imported to the US. It will most likely raise prices on its vehicles or absorb some (or all) of the tariff cost.
Yesterday, German luxury rival Porsche ( P911.DE ) gave a clue as to who might be paying tariffs for its highly desirable sports cars and SUVs.
"When the subject [of tariffs] becomes concrete, we will assess which price options there are to pass on to consumers," Porsche CFO Jochen Breckner said Wednesday , indicating its customers will be paying for Trump’s tariffs, not the company.
"We have a very, very strong brand, a great customer base, a loyal customer base, and great product. So in the first place, we would look into additional pricing," Breckner added.
But it isn’t just tariffs on EU-made goods that are a threat to European automakers, many assemble vehicles in Mexico as well. The Trump White House is poised to enact 25% tariffs on Mexican-made goods starting April 2.
Germany’s BWW ( BMW.DE ), which has a major plant in Mexico, where the 3-series sedan and high-performance M2 sports car are made, is taking a different tack with tariff costs.
Per the Wall Street Journal , BMW is telling dealers it will absorb the costs of new tariffs on imports from Mexico and “price protect” those vehicles until May 1.
But if the tariff situation remains for longer, the company may need to “reassess” that policy.
Finally, German behemoth Volkswagen ( VWAGY ), the world’s No. 2 automaker by sales, is a big tariff target as it makes a number of vehicles at its plant in Puebla, Mexico.
Countermeasures like increasing production at its US plant in Chattanooga, Tenn., would need “a bit more time,” Volkswagen Brand CEO Thomas Schäfer said on Thursday, according to Reuters .
And shifting production from Mexico, where the popular Tiguan SUV is made, to the US is “not realistic” in the short term, Schäfer said.
"For now, we are watching the situation and doing back-up plans for long-term solutions," Schäfer said.
With increasing production of current US-made vehicles or adding production of other cars at its US plant off the cards, VW has two options — raise prices or absorb them.
Both options are unappealing for VW, as higher prices would make its vehicles less competitive while eating the tariff costs would hit margins.
With no new clarity on the tariff threat emanating from the White House and EU negotiators, European automakers face a stressful and, as Porsche execs indicated, “sleepless” time in limbo.
Bottom line: The Moët & Chandon champagne and Whispering Angel French rosé will remain on ice, for now.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram .