EU postpones US trade tariffs after Trump warns of 200% tax on European wine
Trump stands by 200% tariff threats on EU wine
President Trump’s administration is standing by their threats to place export tariff taxes on European Union exporters of wine and wineries who market their products to American consumers from Europe.
WASHINGTON - The European Union has delayed its planned tariffs on US goods, which were set to go into effect at the start of April, pushing them to mid-April instead. The decision gives the bloc more time to negotiate with Washington and review the list of products that would be affected by the tariffs.
"We are now considering aligning the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously," European Trade Commissioner Maros Sefcovic said during a European Parliament hearing, according to Reuters.
US and EU locked in trade dispute
The backstory:
The EU's planned tariffs were a response to Trump’s recent move to raise duties on steel and aluminum imports by 25%. In retaliation, the EU announced tariffs on $28 billion worth of US goods, including a 50% tax on American whiskey.
The delay was welcomed by US distillers, who warned that the EU's tariffs could hurt American whiskey exports, which have surged since a previous tariff suspension three years ago.
"This is a very positive development and gives US distillers a glimmer of hope that a devastating 50% tariff on American whiskey can be averted," Distilled Spirits Council president Chris Swonger said.
Trump threatens new tariffs on EU products
What they're saying:
Following the EU’s announcement of its countermeasures, Trump warned that he would hit back with severe tariffs on European products.
"If this tariff is not removed immediately, the US will shortly place a 200% tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER EU REPRESENTED COUNTRIES. This will be great for the Wine and Champagne businesses in the US," Trump wrote on Truth Social.
President Donald Trump speaks during an executive order signing in the Oval Office at the White House on February 11, 2025 in Washington, DC. (Photo by Andrew Harnik/Getty Images)
Irish Prime Minister Micheál Martin praised the EU’s decision to delay tariffs, calling it a "wise and strategic" move that allows Europe to respond more effectively.
What's next:
Despite the delay, there has been little progress in easing trade tensions between the US and the EU. European leaders remain concerned about the broader implications of Trump’s tariff policies.
"I don't think that the US thinking is in that direction," Sefcovic said regarding possible reductions in import duties. "Currently, they believe that the best way to do this is through the tariff policy. I hope that one day we will get to this discussion, but currently, we are clearly not there."
For now, both sides remain locked in a trade dispute that could impact industries on both sides of the Atlantic.
The Source: This article was reported from Los Angeles. It is based on reporting from Reuters and FOX Business, including statements from European Trade Commissioner Maros Sefcovic, Distilled Spirits Council president Chris Swonger, and Irish Prime Minister Micheál Martin.