The European Union has postponed the implementation of countermeasures against US trade tariffs, including iconic American spirits such as Bourbon whiskey. The delay is to allow time for further talks among EU member states and for the European Commission to evaluate the overall response. The postponement until mid-April is intended to give more time for consultation with governments and to assess all countermeasures, which were originally set to come into force on 1 April and mid-April. This decision comes after President Trump threatened the European wine and spirits sector with a 200% import tariff following the EU’s retaliation to US tariffs on steel and aluminium imports.
Trade commissioner Maroš Šefčovič sought to address concerns from MEPs about potential harm to European drinks producers, particularly in the wine and spirits industry. The decision to merge the two lists of US products targeted by countermeasures allows for more consultation and a potential rethink of the earlier list. This approach could benefit top European wine exporters like Italy, France, and Spain. The aim is to avoid a trade war and take a more global and strategic approach in response to the US tariffs. The EU hopes that Washington will be open to negotiation before adjusting its response accordingly.
The European countermeasures include a list of US products that had been prepared during a previous trade dispute in Trump’s first term and a second list set to be implemented in mid-April after approval by member states. The decision to treat both lists as one package allows for a more comprehensive assessment and potential revisions before implementation. The EU wine and spirits industry representatives support a more strategic approach rather than targeting Bourbon whiskey specifically, as they believe a trade war would be detrimental to the overall economy.
The Trump administration is expected to announce further US tariffs in response to what they perceive as trade barriers from the EU. The European Commission is awaiting Washington’s next move before adjusting their response, hoping for the opportunity to engage in negotiations. Šefčovič previously met with US Commerce secretary Howard Lutnic to discuss various trade issues, including cars, chips, timber, steel and aluminium, and pharmaceuticals. While discussions on the mutual recognition of certification standards for cars have been suggested, the US seems focused on preparations for their upcoming reciprocal tariffs.
In the meantime, the EU is hopeful that the US government will be open to negotiations to rebuild trading relations with the rest of the world. The timing of the US’s planned reciprocal tariffs on 2 April will provide a baseline for potential negotiations. The EU is willing to engage in discussions across various sectors but acknowledges that both parties need to be willing partners in the process. The European Commission is awaiting further information on the US’s next steps before calibrating their response accordingly in hopes of avoiding a full-blown trade war that could be damaging to both economies.
