Europe Holds Off on US Whiskey Tariffs as Trade Battle Grows

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Tejaswini Deshmukh
Tejaswini Deshmukh
Tejaswini Deshmukh is the contributing editor of RegTech Times, specializing in defense, regulations and technologies. She analyzes military innovations, cybersecurity threats, and geopolitical risks shaping national security. With a Master’s from Pune University, she closely tracks defense policies, sanctions, and enforcement actions. Her work highlights regulatory challenges in defense technology and global security frameworks. Tejaswini provides sharp insights into emerging threats and compliance in the defense sector.

Europe has decided to delay new tariffs on American goods, including a hefty 50% tax on U.S. whiskey. These tariffs were meant to be a response to the steel and aluminum taxes imposed by the U.S. government under President Donald Trump. However, instead of rolling them out at the end of March, European officials now plan to start them in mid-April. The reason for the delay is simple: they want more time to adjust the list of affected products and to continue discussions with the United States.

Olof Gill, a spokesperson for the European Commission, confirmed that this decision allows extra time for negotiations. While leaders of the bloc still plan to impose tariffs on up to 26 billion euros ($28 billion) worth of American exports, they want to be careful in selecting the right goods to target. Their goal is to balance the needs of businesses and consumers within the region while also making a strong statement against U.S. trade policies.

U.S. Stance: No Talks Until April 2 Tariffs Take Effect

Despite Europe’s willingness to discuss a solution, U.S. officials have made it clear that they will not begin serious trade talks until after April 2. That is when the next round of tariffs from the U.S. is expected to take effect. These new U.S. tariffs will likely increase pressure on European businesses, making negotiations even more crucial.

Maros Sefcovic, the E.U. Trade Commissioner, stated in a speech in Brussels that the U.S. administration does not want to negotiate until after these new tariffs are announced. American officials have signaled that they want to see how these tariffs impact trade before they engage in discussions with the bloc. This has created frustration among some European leaders who are eager to reach a deal before tensions escalate further. For now, the region has no choice but to wait and see what happens after the new U.S. tariffs are put in place.

Wine, Whiskey, and Other Products at the Center of the Dispute

One of the most controversial parts of this trade battle is the potential impact on alcohol sales. If Europe follows through with its planned tariffs, American whiskey producers could face steep taxes when selling their products in the region. In response, the U.S. has threatened to impose a massive 200% tax on wines, champagne, and other alcoholic beverages from the bloc.

This has sparked concern among European winemakers, including political leaders from wine-producing countries. Italian Prime Minister Giorgia Meloni has warned against a “vicious circle” of escalating trade measures, while French Prime Minister François Bayrou has cautioned that the region risks “hitting the wrong targets.”

However, European officials insist that they are carefully reviewing which products should be included in their final list of tariffs. For now, the delay in Europe’s countertariffs gives both sides more time to find a possible resolution. But with the U.S. set to impose new tariffs in early April, the situation remains tense. The next few weeks will be critical in determining whether this trade conflict escalates or whether both sides can find common ground.

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