Trump Threatens 200% Tariff on EU Alcohol, Impacting Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2026
0mins
Source: CNBC
- Market Reaction: European stocks plummeted on Tuesday as Trump threatened a 200% tariff on alcohol from EU countries, with the pan-European Stoxx 600 index falling 1.4% by 9:50 a.m. London time, indicating negative sentiment across all sectors and major regional exchanges.
- Tariff Details: Trump announced that starting February 1, eight European allies, including Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, would face escalating tariffs beginning at 10% and rising to 25% by June 1 if no agreement is reached.
- French Response: French leaders have strongly opposed Trump's tariff threats and called for more dialogue with the U.S., as shares of luxury giant LVMH and drinks company Remy Cointreau fell by 2.1% and 1.5%, respectively, reflecting market concerns over potential tariffs.
- Economic Data: Meanwhile, data from the U.K. Office for National Statistics showed that the unemployment rate remained unchanged at 5.1% for the three months ending in November, while wage growth eased to 4.5%, highlighting economic pressures and uncertainties.
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About RMCF
Rocky Mountain Chocolate Factory Inc. is a franchiser of a premium chocolate and confectionary retail store concept. The Company is engaged in producing an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples. It operates through three segments: Franchising, Manufacturing and Retail Stores. It produces over 300 chocolates and other confectionery products, including varieties of clusters, caramels, creams, toffees, mints and truffles. The Company sells its products in a select number of specialty markets, including wholesale, fundraising, corporate sales, e-commerce, and private label. The Company also makes a variety of seasonal items, including many candies offered in packages, which are specifically designed for holidays. The Company and its franchisees and licensees operate nearly 250 Rocky Mountain Chocolate stores across the United States, with several international locations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Threatens 200% Tariff on EU Alcohol, Impacting Stocks
- Market Reaction: European stocks plummeted on Tuesday as Trump threatened a 200% tariff on alcohol from EU countries, with the pan-European Stoxx 600 index falling 1.4% by 9:50 a.m. London time, indicating negative sentiment across all sectors and major regional exchanges.
- Tariff Details: Trump announced that starting February 1, eight European allies, including Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, would face escalating tariffs beginning at 10% and rising to 25% by June 1 if no agreement is reached.
- French Response: French leaders have strongly opposed Trump's tariff threats and called for more dialogue with the U.S., as shares of luxury giant LVMH and drinks company Remy Cointreau fell by 2.1% and 1.5%, respectively, reflecting market concerns over potential tariffs.
- Economic Data: Meanwhile, data from the U.K. Office for National Statistics showed that the unemployment rate remained unchanged at 5.1% for the three months ending in November, while wage growth eased to 4.5%, highlighting economic pressures and uncertainties.
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Rocky Mountain (RMCF) Earnings Call Transcript
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