EU Delays Retaliatory Tariffs on US, Hopes for Last-Minute Deal

The European Union has decided to postpone its planned countermeasures against President Trump’s steel and aluminum tariffs, delaying the introduction of hefty levies—including a 50% tariff on American whiskey—until mid-April.

The European Commission had initially planned to start phasing in tariffs by March 31 but opted to push back the timeline to allow further negotiations with the United States. “This provides additional time for discussions with the U.S. administration,” said Commission spokesman Olof Gill on Thursday.

Aiming for a balanced approach

EU officials are carefully refining their list of U.S. products that will be hit with tariffs. The proposed measures target up to €26 billion ($28 billion) worth of American exports, spanning various sectors, including machinery, soy products, and lingerie.

However, European leaders remain divided on the best course of action. While the EU wants to ensure its countermeasures support European producers, exporters, and consumers, some officials worry about escalating tensions. Italy’s Prime Minister Giorgia Meloni has cautioned against a “vicious circle” of trade restrictions, while French Prime Minister François Bayrou warned that Europe risked “hitting the wrong targets.”

Here is what else you need to know

In response to the EU’s plans, President Trump had threatened to impose a staggering 200% tariff on European champagne, wine, and other alcoholic beverages. The warning has put additional pressure on European leaders, particularly those from wine-producing nations, to reconsider their approach.

Meanwhile, the EU believes the U.S. is preparing to introduce additional tariffs on April 2. Maros Sefcovic, the EU’s trade commissioner, said in a speech on Thursday that Washington was unwilling to negotiate until after the next round of tariffs was officially announced. “Only then may partners be able to engage on possible negotiations,” he stated, adding that the EU remained open to dialogue.

What’s Next?

The coming weeks will be crucial for determining whether a trade war can be avoided. The EU hopes the delay will allow room for a diplomatic resolution, but if no agreement is reached, Europe’s retaliatory tariffs could hit American products by mid-April.