The European Union (EU) has postponed its intention to respond to US President Donald Trump’s steel and aluminium tariffs until the middle of next month.
Trump responded to the trading bloc’s intention to impose duties on US products, including a 50% levy on whisky, on 1 April by threatening a 200% alcohol tariff.
In an effort to alleviate the dispute, the European Union announced on Thursday that it would postpone its tariffs. The EU stated that it desired “additional time for discussions” with the United States.
It is timed to coincide with the efforts of global leaders to address the White House’s trade threats, which include the imminent “reciprocal” tariffs that Trump has pledged to implement on April 2.
In the past week, leaders in France and Italy, which are home to numerous wine exporters who would be impacted if Trump’s threat were to be implemented, have criticised the EU for its escalation in response to Trump.
The EU had initially announced that its tariffs would be implemented in two phases, with the first set of duties taking effect on April 1 and the second round on April 13.
On Thursday, EU Spokesperson Olof Gill stated that the first round of US tariffs was postponed until April 13, which was “a minor adjustment to the timeline” and did not diminish the impact of the EU’s response.
He stated that officials intended to consult with EU members regarding the items from the United States that would be targeted.
“In the interim, the EU remains prepared to engage in constructive dialogue with the US to pursue a resolution that prevents unwarranted damage to both economies,” he stated.
He declined to disclose whether the EU had made any progress in discussing the matter since contacting the Trump administration.
The EU’s tariff delay was welcomed by Chris Swonger, the president of the Distilled Spirits Council, who represents US alcohol-makers in the United States.
“This is a highly encouraging development that provides US distillers with a glimmer of hope that a catastrophic 50% tariff on American whisky can be averted,” he stated. He also encouraged the two parties to negotiate an agreement that would maintain “zero-for-zero” tariffs for the spirits trade.
Another round of tariffs on countries worldwide is currently being prepared by the White House, with the EU anticipated to be one of the main trading partners affected.
Trump has expressed his enthusiasm for the tariffs, which he claims are directed at countries that engage in trade practices that undermine US exports, despite the fact that the exact nature of the duties is still uncertain.
White House officials have explicitly stated that the EU will be a target, as Trump proposed a 25% tariff on all European products earlier this year.
The US has long complained about other types of regulations, such as those that prohibit trace levels of pesticides, that they claim place American products at a disadvantage, despite the fact that the EU’s average tariffs are not significantly higher than those imposed by the US.
Leave a Reply