The European Union (EU) has postponed its response to US President Donald Trump’s steel and aluminium tariffs, delaying action until mid-next month.
Originally, the trading bloc planned to impose tariffs on US goods, including a hefty 50% tariff on whiskey, starting from 1 April, which prompted Trump to threaten a 200% tariff on alcohol.
In an effort to ease tensions, the EU announced on Thursday that it is pushing back its planned tariffs, expressing the need for “additional time for discussions” with the US.
This decision comes as global leaders work to address the trade threats from the White House, including the impending “reciprocal” tariffs that Trump plans to unveil on 2 April.
In recent days, leaders from France and Italy — home to many wine exporters who would be impacted if Trump followed through with his threats — have criticized the EU for its escalatory measures in response to the US.
The EU initially indicated that its tariffs would be implemented in two phases, with one set starting on 1 April and another on 13 April.
EU spokesperson Olof Gill stated on Thursday that pushing back the first phase of US tariffs to 13 April is “a slight adjustment to the timeline and does not lessen the impact of our response.”
He added that officials intend to consult with EU member states regarding which US products will be targeted.
“In the meantime, the EU remains prepared to engage in constructive dialogue with the US to find a solution that minimizes unnecessary harm to both economies,” he noted.
He refrained from commenting on whether the EU had made any progress in discussions with the Trump administration on this issue.
Chris Swonger, president of the Distilled Spirits Council representing US alcohol producers, welcomed the EU’s delay in imposing tariffs.
“This is a very positive development and provides US distillers with a glimmer of hope that we can avoid a damaging 50% tariff on American whiskey,” he stated, urging both sides to reach an arrangement that maintains “zero-for-zero” tariffs on spirits.
The White House is preparing to announce another round of tariffs affecting countries worldwide, with the EU anticipated to be one of the key trading partners impacted.
While the specifics of these duties remain uncertain, Trump has promoted the tariffs, claiming they target countries with trade practices detrimental to US exports.
White House officials have indicated that the EU will be a target, with Trump having proposed a 25% tariff on all European goods earlier this year.
Even though the EU’s average tariffs are comparable to those imposed by the US, American officials have long raised concerns about various regulatory measures, such as restrictions on trace pesticide levels, which they argue disadvantage US products.
