Merchants worried that a trade war could wreak financial havoc in a region that has a robust business exporting the world’s finest bubbly to the United States.

President Trump threatened to impose 200% tariffs on alcohol from the European Union, one day after the EU said it planned 50% import taxes on U.S. whiskey and other products from April 1, in retaliat

This will be great for the Wine and Champagne businesses in the U.S.," the president proclaimed on Truth Social

Industry representatives warned that a 200 percent tax on European wines and spirits would halt shipments to the United States and wipe €4 billion off France’s trade balance.

The European Union was probably mistaken in targeting American whiskey in its riposte to U.S. tariffs, French Prime Minister Francois Bayrou said on Sunday, calling for talks to avoid more damaging duties on France's cognac industry.

President Trump’s threat of a 200% tariff on European wine collides with Champagne makers’ resistance to uproot from France.

The United States is the biggest export market for champagne, made exclusively in its home region in eastern France.