The European Union has delayed its first counter-measures against the United States over President Donald Trump’s metals tariffs until mid-April, allowing it to re-think which U.S. goods to hit and offering extra weeks for negotiations.
The European Commission had proposed re-imposing 2018 tariffs on 4.5 billion euros ($4.9 billion) of U.S. products on April 1, followed by hitting a further 18 billion euros of U.S. goods on April 13.
“We are now considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously, and this would also give us extra time for negotiations with our American partners,” European Trade Commissioner Maros Sefcovic told a hearing at the European Parliament on Thursday.
The commission subsequently confirmed all EU counter-measures would take effect in mid-April.
The first set of counter-measures includes applying a 50 per cent tariff on U.S. bourbon. Trump threatened to slap a 200 per cent tariff on all wines and other alcoholic products coming from the EU if the bloc went ahead with this.
The Trump administration is also planning “reciprocal” tariffs on April 2to rebalance the global trading system.
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Sefcovic indicated that he had made limited headway with U.S. counterparts in talks so far, such as on his proposal to discuss on lowering import duties on industrial goods.
“I don’t think that the U.S. thinking is in that direction,” he said, adding its priority appeared to be to draw investment and re-industrialize.
“And 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,” he said.
The counter-measure delay could allow for some adjustment to the U.S. goods targeted.
French Prime Minister Francois Bayrou said on Sunday that the EU was probably mistaken in targeting American whiskey, while Italian Prime Minister Giorgia Meloni cautioned EU partners on Tuesday against escalating the trade dispute with the United States.
“I am not certain that responding to tariffs with more tariffs is necessarily a good deal,” Meloni, who is close to Trump, said.
France and Italy are the largest exporters of wine to the United States.
Prime Minister Micheal Martin of Ireland, a major whiskey exporter, said on Thursday it was sensible that Europe was giving itself time after April 2 to assess the U.S. package of measures and then “wisely and strategically respond.”
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