The European Union is holding off on imposing retaliatory tariffs in response to the United States' recent 25% tariff on steel and aluminum imports.
Initially, the EU planned to roll out countermeasures on April 1, targeting American whiskey, motorboats, and motorcycles, followed by additional tariffs on beer, poultry, beef, and produce such as soybeans, tomatoes, and raspberries on April 13. However, the European Commission announced on Thursday that both phases will now take effect simultaneously in mid-April, pending further negotiations.
The combined tariffs, covering an estimated €26 billion ($28 billion) worth of American exports, are still scheduled to take effect on April 13.
The delay is meant to allow “additional time for discussions with the US administration,” said European Commission spokesperson Olof Gill in a statement to CNN. “The change represents a slight adjustment to the timeline and does not diminish the impact of our response.”
Meanwhile, President Donald Trump has signaled that a new wave of tariffs on foreign goods will be announced on April 2 as part of his broader plan for reciprocal tariffs. He has hinted at higher duties on lumber, autos, and copper, among other imports.
“This is a very positive development and gives US distillers a glimmer of hope that a devastating 50% tariff on American whiskey can be averted,” said Chris Swonger, president and CEO of the US Distilled Spirits Council, in a statement.
Trump, however, has not taken kindly to the EU’s tariff plans. After the bloc announced its countermeasures last week, he immediately threatened to impose a 200% tariff on European wine and spirits.
Trying to Stay on Trump’s Good Side
The details of Trump’s April 2 tariff announcement remain unclear, but he has called the date “Liberation Day in America.” Many nations are on edge, with potential repercussions for multiple economies.
Trump has made no secret of his disdain for EU trade policies. In a Truth Social post last week, he called the bloc “one of the most hostile and abusive taxing and tariffing authorities in the World” and claimed the EU “was formed for the sole purpose of taking advantage of the United States.” In reality, experts note that the EU was created with US support to help stabilize and secure Western Europe.
More Tariffs on the Horizon?
The question isn’t whether the EU will face higher US tariffs—it’s how high they will be, analysts at TD Cowen wrote in a note to clients Thursday.
Trump has vowed to target not only countries that impose higher tariffs on US goods but also those that use non-tariff measures such as value-added taxes (VAT) and digital services taxes, which he argues are even more punitive than tariffs. Many of the EU’s 27 member states levy one or both of these taxes.
Despite the looming trade battle, EU Trade Commissioner Maros Sefcovic remained optimistic on Thursday, saying he is “convinced that continued engagement and a positive approach is the best way forward.”
However, he also made clear that on April 2, the European Commission will assess the US actions and “calibrate our response accordingly.”
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