200%: The Tariff That Shook Trade
Trade policy is usually technical and restrained. But sometimes a single number says it all.
In this episode of Number of the Day, Gareth Edwards and Francis Herd examine why 200% has rattled global markets after Donald Trump threatened to impose a massive tariff on French wine and champagne.
The threat follows French President Emmanuel Macron’s refusal to join a proposed US-led Board of Peace, intended to oversee Gaza’s reconstruction. Critics argue the body could rival the United Nations, and Trump has responded by using tariffs as leverage.
In reality, such a tariff wouldn’t be paid by French producers but by US importers and consumers, pushing prices so high that most would simply stop buying champagne altogether. That’s how tariffs work — they choke off imports — but 200% is extreme, risking serious damage to trade relations.
The champagne threat is part of a broader strategy. Trump has also warned of tariffs against European countries resisting his push to acquire Greenland, prompting the EU to accuse Washington of blackmail and threaten retaliation worth €93 billion.
Markets aren’t in full panic yet, but caution is showing. Gold prices are rising as investors seek safety, reflecting growing unease about a potential trade war between long-standing allies.
The takeaway is simple: tariffs are no longer just economic tools. At 200%, they become political weapons — and a reminder that in today’s global economy, one number can unsettle markets far beyond its target.
Catch up on all previous Number of the Day episodes here; https://www.enca.com/number-day-podcast