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Donald Trump is threatening to slap 200% tariffs on European alcohol.
The EU is planning to impose tariffs on American bourbon next month, in retaliation to steel and aluminium levies.
A spokesperson for the bloc says they're preparing to discuss the situation with the US.
Europe correspondent Vincent McAviney told Andrew Dickens spirits, wine, and champagne would all be affected.
He says it would be absolutely drastic to their prices, which are both big EU exports but also in high demand in the US.
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