Tariff Day Sees European Response

U.S. President Donald Trump has hit the “pause” button on new reciprocal tariffs that went into effect at midnight for at least 90 days. The move delays implementation of new tariffs against the European Union and other key trading partners, while raising tariffs on Chinese imports to 125% effective immediately, according to the White House.

The move follows a European Union decision to leave Bourbon and other American whiskies off its list of goods subject to retaliatory tariffs. The European Commission announced tariffs beginning April 15 on more than $22 billion in American exports, including 25% levies on motorcycles, soybeans, grain, and beauty products in retaliation for U.S. tariffs imposed last month on steel and aluminum imports from European and other trading partners. Under Trump’s original reciprocal tariff plan, the EU would have been hit with 20% tariffs on almost all imports.

“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” EU ministers said in a statement after approving the countermeasures, while indicating they could be rolled back if negotiations with the U.S. are successful. Tariffs are a tax paid by the domestic company importing goods from another country, and in this case, are expected to drive up costs for American consumers.

U.S. President Donald Trump had threatened the EU with a 200% tariff on European spirits and wine if American whiskies were hit with a tariff. The tariff would have hit Irish whiskey makers especially hard, since they depend on the U.S. market for around 40% of their annual exports.

In a statement, Distilled Spirits Council CEO Chris Swonger praised the EU’s decision.

“This would be great news, and a huge sigh of relief for anxious distillers across the country who were staring down a potential 50% tariff on American Whiskey within just a matter of days. It would be a positive first step toward getting the U.S.-EU spirits sectors back to zero-for-zero tariffs and untangling distilled spirits products from wider trade disputes.”

During the three years that EU member nations imposed a 25% tariff on American whiskies, exports to the 27-member bloc fell by 20%. The tariff was suspended in 2021 following negotiations with the Biden Administration, and since then, American whiskey exports to the EU have grown by nearly 60% to $699 million in 2024. The EU remains the single largest export market for U.S. spirits, with nearly $1.2 billion in goods exported last year.

This story will be updated with additional information.