Trump pauses higher tariffs bar China
A week after announcing global tariffs, the US president has placed a 90-day pause for all countries except China.
Yesterday (9 April), Trump announced on social media that he would be placing a 90-day pause on his plans to enact universal reciprocal tariffs. All countries will now receive the baseline rate of 10%. Prior to the pause, the EU was subject to a 20% tariff while Japan was at 24%.
The president also declared a 125% tariff on China in response to its 84% tariff on US goods.
In the post, Trump says he reached the decision after more than 75 countries reached out to discuss trade and other matters. He said: “That these countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90-day pause, and a substantially lowered reciprocal tariff during this period, of 10%, also effective immediately.”
The spirits industry has been vocal in its opposition to the tariffs, which would greatly harm brands already dealing with inflation, overstocking, and shifts in consumer habits.
EU exempts Bourbon from tariffs
Trump’s reversal follows news that the EU had exempted Bourbon and other American-made spirits and wines from its 25% tariff on US goods. The move comes as a result of lobbying from France, Italy, and Ireland, which advocated on behalf of their respective drinks industries.
Chris Swonger, president and CEO of the Distilled Spirits Council of the United States (Discus), celebrated the decision, calling it a huge sigh of relief for anxious distillers who narrowly avoided a 50% tariff, which was days from taking effect.
“It would be a positive first step toward getting the US-EU spirits sectors back to zero-for-zero tariffs and untangling distilled spirits products from wider trade disputes,” Swonger said.
Trade disputes between the US and EU stem from 25% steel and aluminum tariffs imposed by the previous Trump administration. The EU responded with tariffs on American whiskey, with the US hitting Scotch, Cognac, and other European-made spirits with a reciprocal tax.
Those tariffs were suspended in 2021. As a result, American whiskey exports to the EU have risen by nearly 60% in three years, growing from US$439 million to US$699 million. In 2024, the EU was the top export market for all US distilled spirits, totalling US$1.2 billion.
The spirits industry has been lobbying the current Trump administration and European policy leaders to spare it from trade disputes.
Since Trump unveiled an economic policy staked on tariffs, the spirits industry feared it would get drawn deeper into the fray. Last month, when the EU threatened a 50% tariff on American whiskey, Trump answered with a tariff of 200% on wine and spirits.
“We recognise that president Trump is working to secure fair and reciprocal trade and urge the administration to ensure the permanent return of zero-for-zero tariffs on spirits trade, which will benefit American distillers, farmers, hospitality workers and spirits consumers,” Swonger added.
When the 25% EU tariffs were in place from 2018 to 2021, American whiskey exports fell 20%, from US$552 million to US$440 million.
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