The EU will postpone the implementation of retaliatory tariffs against the U.S. until mid-April, which may be a strategy for the EU to demonstrate a positive stance.
The European Union announced the postponement of its retaliatory tariffs, which were in response to the USA's imposition of a 25% tariff on imported Steel and Aluminum earlier this month.
The European Commission stated on Thursday that measures, including higher tariffs on American whiskey, were originally scheduled to be implemented in phases, taking effect on April 1. However, now, during the wait for negotiation results, these measures have been postponed to take effect all at once in mid-April.
In addition to whiskey, the European Union plans to impose a 50% tariff on American jet skis and motorcycles in the first phase, while the second phase, originally set to take effect on April 13, includes tariffs on Beer, poultry, beef, as well as agricultural products like Soybean, tomatoes, and raspberries.
The value of US goods exports involved in both phases is approximately 26 billion euros (28 billion dollars) and will take effect on April 13.
Olof Gill, spokesperson for the European Commission, stated in a statement to CNN that the postponement of the first phase's implementation was to “allow more time for discussions with the US government” and that “this change is merely a minor adjustment to the timing and will not undermine the impact of our countermeasures.”
President Trump stated that on April 2 he would announce a series of new tariffs on goods entering the USA from around the Global, as part of his proposed reciprocal tariff plan. He also mentioned that he would announce higher new tariffs on goods such as lumber, Autos, and Copper.
Chris Swonger, President and CEO of the Distilled Spirits Council of the USA, said in a statement on Thursday: “This is a very positive development and gives American distillers a glimmer of hope that the imposition of a devastating 50% tariff on American whiskey may be avoided.”
Trump expressed anger over the countermeasures announced by the EU last week and immediately threatened to impose a 200% tariff on European wine and Spirits.
Pandering to Trump.
Little is known about the specifics of Trump’s tariff plan announced on April 2, which he referred to as "Liberation Day in America"—a move that has made every country anxious and poses a threat to the health of multiple economies.
Trump has long made it clear that he dislikes EU policies. Last week, he posted on Truth Social describing the EU as "one of the most hostile and abuse-of-power tax and tariff-making Institutions in the world." He further claimed that the EU "was established solely to take advantage of the USA." However, experts point out that the EU was formed decades ago with the help of the USA as part of a joint plan to stabilize and defend Western Europe.
Analysts from The Toronto-Dominion Bank (TD Cowen) pointed out in a report to clients on Thursday that the issue is not whether the EU will soon face higher tariffs, but how high these tariffs will be.
The targets of these retaliatory tariffs are not just those countries where tariffs on goods exported to the USA exceed the level of US tariffs on their national goods. Trump stated that his administration would also consider non-tariff measures, such as value-added tax, which he referred to last month as "more punitive than tariffs," as well as digital services tax. Among the EU's 27 member states, many impose one or both of these taxes.
EU Trade Commissioner Maros Sefcovic stated on Thursday that he "firmly believes that ongoing contact and a positive attitude are the best ways forward." In this sense, delaying the implementation of retaliatory tariffs while the USA discusses tariff rates may be a strategy for the EU to demonstrate a positive stance.
However, he also stated that on April 2, the European Commission would assess the actions taken by the USA in order to "adjust our response measures accordingly."
The Trump administration has certainly noticed the EU's delay in tariffs. White House Press Secretary Karoline Leavitt stated on Thursday that this delay reflects that "countries are taking the president's actions seriously."
She said: "They understand that the president will do things that benefit American workers and families." She also added, "The president and his team have been in communication with our EU counterparts."