The European Union (EU) has postponed its planned response to U.S. President Donald Trump’s steel and aluminum tariffs, opting to delay imposing retaliatory duties on U.S. products, including a 50% tariff on whiskey, until mid-April. Initially, the EU intended to implement these tariffs from April 1, but in a move that could ease tensions, the bloc announced on Thursday that it would push back its tariffs to allow “additional time for discussions” with the U.S.
The decision comes as global leaders, particularly in Europe, work to address Trump’s trade threats, including “reciprocal” tariffs the U.S. president has pledged to unveil by April 2. France and Italy, which are home to numerous wine exporters potentially impacted by Trump’s tariffs, have recently criticized the EU for escalating the situation by planning retaliatory tariffs.
Initially, the EU planned a two-phase approach, with the first round of tariffs set for April 1 and the second round for April 13. However, EU spokesperson Olof Gill confirmed on Thursday that the first phase would now take effect on April 13, describing the delay as a “slight adjustment to the timeline” without reducing the significance of the EU’s response.
Gill emphasized the EU’s willingness to engage in constructive dialogue with the U.S. to find a solution that would prevent further economic damage to both parties. He also noted that EU officials would consult with member states to finalize the list of U.S. products targeted by the tariffs.
In the U.S., the Distilled Spirits Council, representing American alcohol producers, welcomed the EU’s decision to delay the tariffs. Chris Swonger, the council’s president, described the move as “a positive development” that provided hope for American whiskey distillers that the proposed 50% tariff could be avoided. He encouraged both sides to reach an agreement that would preserve the current zero-tariff arrangement for the spirits trade.
Meanwhile, the White House is preparing to announce additional tariffs on countries around the world, with the EU expected to be a significant target. Although details of the new tariffs remain unclear, Trump has previously suggested a 25% tariff on all European products. U.S. officials have consistently complained about EU trade rules, such as restrictions on trace amounts of pesticides, which they argue disadvantage American products.
As the U.S. and EU continue negotiations, the outcome of these discussions will be critical in determining whether the escalating trade dispute will lead to more punitive tariffs or a diplomatic resolution
