EU delays 50% tariffs on American whiskey
The European Union (EU) has postponed its 50% tariffs on American whiskey, which were due to come into effect on 1 April.
The tariffs, which are to be slapped on €26 billion (US$28bn) worth of US goods, including Bourbon, are in retaliation to US president Donald Trump’s move to bring back tariffs on steel and aluminium imports.
Trump had previously placed tariffs of 25% and 10% on European steel and aluminium respectively during his first term as president in 2018. On 4 March this year, he increased the aluminium tariff to 25%.
The move sparked an immediate response from the EU, which announced its intention to impose counter tariffs from 1 April. In further retaliation, president Trump threatened to slap a 200% tariff on all wines and spirits products coming from the EU.
However, the EU tariffs have been pushed back, with commencement now planned for 13 April.
European trade commissioner Maroš Šefčovič told a hearing at the European Parliament today (20 March): “We are now considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously, and this would also give us extra time for negotiations with our American partners.”
The commission subsequently confirmed all EU counter-measures would take effect in mid-April.
French prime minister François Bayrou said on Sunday that the EU was “probably mistaken” in targeting American whiskey, while Italian prime minister Giorgia Meloni cautioned EU partners on Tuesday against escalating the trade dispute with the US.
“I am not certain that responding to tariffs with more tariffs is necessarily a good deal,” said Meloni, who is said to be close to Trump. “For this reason, I believe Italy’s efforts should be directed toward seeking common-sense solutions between the United States and Europe, guided more by logic than by instinct.”
Today, Irish taoiseach Micheál Martin said it was sensible Europe was giving itself time after 2 April to assess the US package of measures and then “wisely and strategically respond”.
Chris Swonger, president and CEO of the Distilled Spirits Council of the US, said the delay is “a very positive development and gives US distillers a glimmer of hope that a devastating 50% tariff on American whiskey can be averted.
“Over the past three years that these EU tariffs have been suspended, American whiskey exports to the EU have soared, supporting jobs at US distilleries as well as local farms. We urge the EU and US to reach an agreement that will return and safeguard zero-for-zero tariffs for spirits trade, benefitting the spirits and hospitality sectors. The spirits industry is a model for growth through fair and reciprocal trade at zero for zero tariffs.”
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