EU Delays First Round of Counter Tariffs Until Mid-April

The 27-nation bloc had planned to introduce its first round of tariffs on items such as American whiskey from the start of April.

European Union flags fly outside the European Commission headquarters in Brussels on March 1, 2023. Johanna Geron/Reuters

The European Union has delayed its first salvo of counter-tariffs against the United States over Washington’s metals levy until mid-April, allowing it time to rethink which American goods to target and give extra time for negotiations.

The European Commission, the 27-nation bloc’s executive branch, had proposed reimposing 2018 tariffs on 4.5 billion euros ($4.9 billion) of U.S. products from the start of next month, followed by whacking another 18 billion euros ($19.5 billion) of U.S. goods on April 13.

Labeling the tariffs imposed from across the Atlantic as “unjustified,” European Trade Commissioner Maros Sefcovic told a hearing at the European Parliament on March 20: “We are now considering [aligning] the timing of the two sets of EU countermeasures 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 later confirmed that all the bloc’s retaliatory measures would come into effect in mid-April.

The first set of countermeasures includes applying a 50 percent tariff on American whiskey, which prompted President Donald Trump to threaten a 200 percent tariff on all wines and other alcohol products coming from the EU.

The United States is also planning “reciprocal” tariffs on April 2 to rebalance the global trading system.

Sefcovic suggested that he had made limited headway in talks with his counterparts in Washington thus far, such as on his proposal to discuss lowering import duties on industrial goods.

“I don’t think that the U.S. thinking is in that direction,” he said, noting that the Americans’ priorities appeared to be to draw in investment and reindustrialize.

“And currently they believe that the best way to do this is through the tariff policy. I hope that one day we will get to this discussion, but currently, we are clearly not there.”

The counter-measure delay could also allow for some adjustments to the U.S. goods targeted by the EU.

Regarding the steel and aluminum tariffs already imposed by the United States, Sefcovic said: “The EU is clearly not the source of the problem when it comes to steel and aluminum. The real problem is overcapacity.”

In a post on X, he wrote, “I appreciate the EU’s unity, allowing us to be firm in protecting our interests, while engaging with the U.S. to see if we can avoid any unnecessary escalation.”

Leaders of several member states have also warned against getting into a trans-Atlantic tariff row.

Italian Prime Minister Giorgia Meloni cautioned EU partners on March 18 against escalating the trade dispute with the United States.

“I am not certain that responding to tariffs with more tariffs is necessarily a good deal,” said Meloni, who was the only leader of an EU member state to attend Trump’s inauguration.

“That is why I believe Italy’s energy should be spent on seeking sensible solutions between the United States and Europe, guided more by logic than by instinct, in a spirit of mutual respect and economic pragmatism.”

She also said tit-for-tat tariffs could reduce Europeans’ purchasing power.

“Tariffs can easily lead to induced inflation, reducing families’ purchasing power, prompting central banks to raise interest rates, and ultimately slowing economic growth,” Meloni said.

French Prime Minister Francois Bayrou has also said that the EU was probably mistaken in targeting American whiskey.

France and Italy are the largest exporters of wine to the United States.

Irish Prime Minister Micheal Martin said on March 20 that it was sensible that Europe was giving itself time after April 2 to assess the U.S. package of measures.

“Obviously, there has to be a comprehensive response to any tariffs that would be announced on April 2, and the EU will be allowing a bit of time after April 2 before it responds, so I believe the EU will adopt a strategic approach,” he told the nation’s parliament.

Ireland is a major exporter of whiskey.

Reuters contributed to this report.