EU Delays First Wave of Counter Tariffs on US to Make More Time for Negotiation

The first wave of retaliatory tariffs against US levies on steel and aluminum, including 50% tariffs on American whiskey, draw Trump's threat of 200% tariffs on all EU spirits. The EU commissioner said the bloc will assess the US reciprocal tariffs on April 2 and keep a flexible approach to calibrate its response accordingly.

TMTPOST -- The European Union confirmed on Thursday it will delay the first part of planned counter-tariffs on U.S. until the mid-April to make time for negotiation as the Trump administration is set to launch reciprocal tariffs on April 2.

Credit:China Central Television

Credit:China Central Television

The EU’s first retaliatory tariffs against the United States has been pushed back until the middle of next month, Reuters reported on Thursday. The delay will give the EU more time to negotiate with the U.S. and review products subject to the new tax, per the report. The duties to counter U.S. tariffs on steel and aluminum, which is poised to kick off on April 1 and fully in place as of April 13, will take effect all at once on April 13, the European Commission announced later that day.

“The European Commission has decided to align the timing of the two sets of EU countermeasures against U.S. 232 tariffs on EU steel and aluminum,” an EU spokesperson told CNBC, stating the decision can provide “additional time for discussions with the U.S. administration.”  The spokesperson said the EU aims to strike the right balance of products, taking into account the interests of local producers, exporters and consumers.

EU Spokesperson Olof Gill said the decision to delay the first round of planned countermeasures until 13 April was "a slight adjustment to the timeline and does not diminish the impact of our response". 

The move is meant to give officials time to refine the list of products that will be hit while also allowing more time to strike a deal with the United States, said Gill. "In the meantime, the EU continues to be ready to engage in constructive dialogue with the US, in order to seek a solution that avoids unnecessary harm to both economies," he said.

Maros Sefcovic, the EU’s commissioner for trade and economic security, said in a written remark that he will continue talks with the U.S. to look for possible solutions, while continuing preparation for new response to the coming levies. “On 2 April, we will need to assess the action take by the U.S. and keep a flexible approach so as to calibrate our response accordingly,” he said.

April 2 is the day that U.S. President Donald Trump repeatedly vowed to impose reciprocal tariffs on other countries. Trump signed on February 13 a presidential memorandum dubbed "Fair and Reciprocal Plan", and that day ordered the development of a comprehensive plan for restoring fairness in U.S. trade relationships and countering non-reciprocal trading arrangements. U.S. Commerce Secretary Howard Lutnick expected the studies will be complete by April 1, and Trump can decide when to enact any new recommended tariffs from April 2.

Trump said late February that he will move forward with the reciprocal tariff on American trading partners as the schedule. Trump on Sunday underlined again he would start implementation of the sweeping reciprocal tariffs on April 2. “April 2 is a liberating day for our country,” Trump told reporters on Air Force One. “We’re getting back to some of the wealth that very, very foolish presidents gave away because they had no clue what they were doing.” Trump also said he would sector-specific tariffs, including the steel and aluminum sectors for auto production.

On March 12, when the 25% U.S. tariffs on steel and aluminum entered effect, The European Commission announced the EU’s countermeasures that could apply to U.S. goods exports worth up to €26 billion, matching the economic scope of the US tariffsThe first wave of EU tariffs

The Commission said the EU’s response will be introduced in two steps. First, it will allow the suspension of existing 2018 and 2020 countermeasures against the US to lapse on April 1. The step targets  a range of US products that respond to the economic harm done on €8 billion of EU steel and aluminium exports. Second, given the new U.S. tariffs affecting more than €18 billion of EU exports, it will move forward a package of new countermeasures on US exports. They will come into force by mid-April, following consultation of Member States and stakeholders.

The first wave of EU’s retaliatory tariffs include 50% tariffs on American whiskey, motorboats and motorcycles, which immediately draw Trump’s threat of higher duties on EU.

If the EU does not remove its 50% tariff on Whisky, the U.S. will shortly place a 200% tariffs on all wines, champagnes and alcoholic products coming out of France and other EU member countries, Trump said in a post on his social media Truth Social on March 13. Trump claimed the 200% tariffs will be great for the wine and champagne businesses in the U.S. He labeled the EU “one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States.” 

The White House press secretary Karoline Leavitt said on Thursday the EU’s delay of part of countermeasures reflects the extent to which “countries are taking the president seriously.” She added that Trump and his team are in constant communication with EU counterparts.

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