The European Union has pulled back from its plan to hit U.S. goods with steep tariffs, after President Donald Trump warned that European wine and alcohol could face a 200% tax in retaliation. The EU had been set to roll out the first wave of tariffs by the end of March.
European Commission officials now say the delay will last until at least mid-April. While the stated reason is more time to review the product list, the move follows a wave of resistance from within Europe. Top national leaders have voiced concern that poking the Trump administration could trigger economic blowback.
Products originally on the table included bourbon whiskey, denim and motorcycles — a targeted set of exports with ties to conservative American states. But Trump responded with a threat of massive tariffs aimed directly at French wine and similar goods.
Prime Minister Giorgia Meloni of Italy questioned the wisdom of the EU’s strategy, warning against entering a cycle of escalation. She called for decisions guided by “logic,” not instinct. Leaders from France and Ireland also expressed doubts about engaging in a tit-for-tat standoff.
Trade Commissioner Maros Sefcovic admitted Thursday that serious talks with the U.S. are unlikely to happen before April 2. That’s the date when Trump’s reciprocal tariff expansion takes effect — a policy expected to touch goods from nearly all major trade partners.
Trump’s current round of tariffs on steel and aluminum imports took effect March 12. The EU’s response had been designed as a counterattack, reviving a strategy used during Trump’s first term.
The now-delayed EU tariffs were projected to target $28 billion in American exports. A 50% tax on American whiskey had been one of the centerpiece measures, which is now in limbo as European leaders recalculate their next move.
