Europe delays tariffs on US goods, including whiskey

By Elisabeth Buchwald, CNN

(CNN) — The European Union is delaying the retaliatory tariffs it announced after the United States imposed a 25% tariff on steel and aluminum imports earlier this month.

The countermeasures, which include higher tariffs on American whiskey, were set to take effect starting April 1 and follow a phased approach. Instead, they will take effect all at once in mid-April, pending negotiations, the Commission announced on Thursday.

In addition to whiskey, the first phase called for 50% tariffs on motorboats and motorcycles from the US. The second phase, which was set to take effect on April 13, included tariffs on beer, poultry, beef, and produce such as soybeans, tomatoes and raspberries.

Now both phases, which cover an estimated €26 billion ($28 billion) worth of American goods exports, are set to take effect on April 13.

The phase one delay was put in motion to allow “additional time for discussions with the US administration,” European Commission spokesperson Olof Gill said in a statement to CNN. “The change represents a slight adjustment to the timeline and does not diminish the impact of our response.”

President Donald Trump has said that as of April 2, a slew of new tariffs will be announced on goods coming to the US from all over the globe as part of his package of reciprocal tariffs. He has also said new, higher tariffs on goods such as lumber, autos and copper will be announced then.

“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,” US Distilled Spirits Council president and CEO Chris Swonger said in a statement Thursday.

Angered by the countermeasures the EU announced last week, Trump immediately threatened to impose a 200% tariff on European wine and spirits.

Getting on Trump’s good side

Very little is known about the details of Trump’s tariff announcement on April 2, which he has called “Liberation Day in America” — but it has put every country on edge and the health of multiple economies is at stake.

Trump has already made it clear that he’s no fan of the EU’s policies, calling them “one of the most hostile and abusive taxing and tariffing authorities in the World” in a Truth Social post last week. He has further alleged that the EU “was formed for the sole purpose of taking advantage of the United States.” Experts point out that the EU was formed decades ago with the help of the US as part of a joint plan to stabilize and secure Western Europe.

It’s not a question of whether the EU will soon be subjected to higher tariffs. Rather, it’s a matter of how high they’ll go, TD Cowen analysts said in a note to clients on Thursday.

The reciprocal tariffs won’t just target countries that impose higher tariffs on US exports compared to the levels at which the US taxes their countries’ goods. Trump said his administration will also be taking into account non-tariff measures, such as value-added taxes, which he said last month are “far more punitive than a tariff,” as well as digital services taxes. Many of the EU’s 27 member countries impose one or both of those taxes.

Maros Sefcovic, the EU trade commissioner, said in remarks Thursday he’s “convinced that continued engagement and a positive approach is the best way forward.” In that sense, the delay may be part of a strategy to put the EU’s best foot forward as tariff rates are being deliberated in Washington.

But he said that on April 2, the Commission will assess the actions taken by the US to “calibrate our response accordingly.”

The delay certainly didn’t go unnoticed by the Trump administration. White House Press Secretary Karoline Leavitt said Thursday the delay reflects the extent to which “countries are taking the president seriously.”

“They understand that he is going to do what’s right for American workers and families,” she said, adding that “the president and his team are in constant communication with our EU counterparts.”

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