European beverage stocks tumbled after President Donald Trump announced new U.S. tariffs on imports from the EU and UK, reviving trade tensions. Shares of spirits makers with heavy U.S. exposure, like Pernod Ricard and Diageo, fell sharply on the news.

The proposed 10% tariff, rising to 25% by June, would layer atop existing duties. Analysts at Jefferies warn of measurable earnings hits, with Rémy Cointreau facing the steepest impact—potentially 30.3% of profits at the higher rate. The move pressures companies already navigating a complex transatlantic trade landscape.

European governments are holding emergency talks, with potential counter-tariffs worth up to €93 billion reported. Investors now face a near-term risk event, watching for U.S.-EU negotiations. The dispute threatens to drive volatility in spirits stocks as markets assess the full financial fallout.