The European Union is backing off its threat to slap new tariffs on U.S. imports, delaying the plan until mid-April amid growing fears of a trade clash with President Donald Trump. The decision postpones taxes on goods like American whiskey, jeans and motorcycles that were originally set to take effect at the end of March.
European Commission spokesman Olof Gill confirmed the delay and said it would allow more time for discussions with the U.S. administration. But many observers see it as a reaction to Trump’s warning that the U.S. would respond with 200% tariffs on European alcohol if the EU moved forward.
The EU’s retaliatory measures had been announced in response to Trump’s new tariffs on steel and aluminum imports. Those U.S. taxes went into effect on March 12 and reignited trade disputes that had cooled after Trump’s first term.
European leaders have expressed concern about the economic consequences of a transatlantic tariff fight. Italian Prime Minister Giorgia Meloni warned against creating a “vicious circle” of retaliation. French Prime Minister Francois Bayrou also criticized the EU’s approach, calling for restraint.
The EU’s proposed tariffs would impact $28 billion in American goods, reinstating penalties similar to those imposed during Trump’s first term. A 50% tariff on American whiskey had been the centerpiece of the plan.
Trade Commissioner Maros Sefcovic said on Thursday that negotiations are unlikely to resume in earnest until after April 2, when Trump’s reciprocal tariff policy is scheduled to expand. That date looms large for European leaders now facing pressure at home to avoid further escalation.
President Trump has shown no signs of backing down. He made clear earlier this month that any attempt to punish U.S. exports would be met with severe countermeasures, including steep taxes on alcohol imported from the EU.
