EU Hits Pause On The Retaliatory Tariffs On US Goods Until Mid-April: 'Does Not Diminish The Impact Of Our Response'

The European Union (EU) has decided to delay the imposition of retaliatory tariffs on US goods, including a 50% duty on whiskey, until mid-April. This move comes as a response to President Donald Trump‘s steel and aluminium tariffs.

What Happened: The EU’s decision to postpone the tariffs until the middle of April could be a strategic move to de-escalate the trade dispute. The EU had initially planned to implement the tariffs in two phases, starting from 1 April. However, it now seeks “additional time for discussions” with the U.S., reported CNBC.

Global leaders are currently dealing with the White House’s trade threats, including the “reciprocal” tariffs Trump plans to announce on 2 April. The EU’s response to Trump’s actions has faced criticism from leaders in France and Italy, countries that are home to many wine exporters who would be affected by Trump’s proposed tariffs.

EU Spokesperson Olof Gill told CNBC that the delay in tariffs is “a slight adjustment to the timeline and does not diminish the impact of our response”. Gill also mentioned that the EU remains open to a constructive dialogue with the US to avoid unnecessary harm to both economies.

“In particular as the EU continues to prepare for retaliation of up to EUR 26 billion ($28 billion),” stated Gill.

Chris Swonger, president of the Distilled Spirits Council, representing U.S. alcohol-makers, welcomed the EU’s tariff delay, calling it a “very positive development”.

SEE ALSO: Eric Trump Named Advisor to Metaplanet, Japanese Bitcoin Firm Whose Stock Surged 2,152% In The Last Year

Why It Matters: This development comes in the wake of President Trump’s threat to impose a 200% tariff on alcoholic products from the European Union. This was in response to the EU’s decision to impose a 50% tariff on U.S. bourbon. The delay in the EU’s retaliatory tariffs could be seen as an attempt to avoid further escalation and potentially damaging tariffs on both sides.

Last week, French Prime Minister Francois Bayrou told France Inter radio that the EU was likely misguided in targeting American whiskey in response to U.S. tariffs. “A very old (product) list has been retrieved without it being checked like it should have been,” added Bayrou.

Although the EU’s average tariffs are not significantly higher than those of the U.S., the U.S. has long criticized other ‘non-monetary’ tariff regulations—such as restrictions on trace levels of pesticides and other regulations which they claim create an unfair disadvantage for U.S. products.

• READ MORE: Is Tariff An Issue For Restaurant Sector? J.P. Morgan Highlights Winners & Losers

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.