The European Union (EU) has decided to delay its planned response to US President Donald Trump's tariffs on steel and aluminum, providing a temporary respite in the escalating trade tensions. Initially set to impose duties on US products, including a substantial 50% levy on whiskey, the EU has now postponed these measures until the middle of next month. This decision comes as the White House prepares to announce a new round of global tariffs, potentially affecting major trading partners, including the EU.
The EU's delay is strategic, granting additional time for discussions with the US. The EU hopes to preserve "zero-for-zero" tariffs for the spirits trade, avoiding what could become a trade war over whiskey. The Distilled Spirits Council president Chris Swonger expressed relief at the EU’s decision, highlighting the potential avoidance of a severe tariff.
"A devastating 50% tariff on American whiskey can be averted," said Chris Swonger, President of the Distilled Spirits Council.
The initial plan proposed by the EU involved implementing tariffs in two phases. The first set of duties was scheduled to start on April 1, followed by a second round on April 13. However, with the recent delay, these dates have been pushed back as the EU seeks to negotiate a more favorable resolution.
In response to the EU's proposed measures, the US threatened a significant 200% alcohol tariff. This move underscores the intensity of the current trade standoff between the two economic powerhouses. Additionally, President Trump has suggested a 25% tariff on all European products, further signaling his administration's readiness to escalate trade measures against countries with trade practices deemed harmful to US exports.
Despite the delay in implementing retaliatory tariffs, the EU remains firm in its stance against what it views as unfair trade practices by the US. Olof Gill, an EU spokesperson, emphasized that the adjustment in timing does not weaken their intended response.
"A slight adjustment to the timeline and does not diminish the impact of our response," stated Olof Gill.