Brussels hits pause on whiskey and Bourbon duties in search of negotiation window

The European Union has opted to delay its planned retaliatory tariffs on US goods until mid-April, buying time for renewed dialogue with Washington and allowing for further consultation with Member States.

The delay postpones both the reimposition of suspended 2018 tariffs and the introduction of a broader €18 billion package targeting a wider swathe of American exports.

The European Commission had originally proposed reactivating duties on €4.5 billion worth of US products from 1 April, followed by further counter-measures on 13 April. These included, notably, a 50% tariff on Bourbon — an emblematic product in the crosshairs of a long-running transatlantic trade dispute rooted in former US President Donald Trump's 2018 metals tariffs.

Sefcovic cites alignment and negotiation as key motives

European Trade Commissioner Maroš Šefčovič told a European Parliament hearing on Thursday that the Commission was “considering to align the timing of the two sets of EU counter-measures so we can consult with member states on both lists simultaneously,” a move that would also provide “extra time for negotiations with our American partners.”

As reported by Reuters, The Commission later confirmed all counter-measures will now take effect in mid-April, marking a deliberate strategic pause in the face of rising tensions. Šefčovič indicated progress in discussions with US counterparts has been limited, remarking: “I don’t think that the US thinking is in that direction,” adding that their priority seems to be attracting investment and reindustrialising through tariff policy.

Trump’s 200% wine tariff threat raises industry alarm

The delay comes amidst renewed threats from Donald Trump, who has warned of a 200% tariff on EU wines, Champagnes and spirits if the EU proceeds with its bourbon duty. As reported by db, Trump posted on his Truth Social platform that if the EU does not remove its whiskey tariff, the US would retaliate harshly:

“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 E.U. REPRESENTED COUNTRIES.”

The rhetoric has sent ripples across both the drinks industry and financial markets. SpiritsEUROPE trade and economic affairs director Pauline Bastidon lamented that “yet again, spirit drinks have become collateral damage in an unrelated trade dispute.” The once flourishing transatlantic spirits trade — bolstered by a “zero-for-zero” tariff agreement — now hangs in jeopardy.

France, Italy and Ireland urge de-escalation

European leaders have echoed the need for restraint. French Prime Minister François Bayrou acknowledged that targeting American whiskey may have been a misstep, while Italian Prime Minister Giorgia Meloni cautioned against escalating the dispute further. “I am not certain that responding to tariffs with more tariffs is necessarily a good deal,” she said earlier this week.

Ireland’s Taoiseach Micheál Martin, whose country is a major whiskey exporter, supported the EU's decision to delay action, calling it “sensible” to assess the full scope of the US package and respond “wisely and strategically.”

A familiar transatlantic grudge

This latest standoff is rooted in the Trump administration’s 2018 imposition of steel and aluminium tariffs on EU exports — so-called “section 232” measures affecting €6.4 billion of trade (€8 billion in 2024 values). The EU responded with its own set of rebalancing tariffs in two tranches. Although these were suspended in a spirit of compromise, the US reinstated its duties on 12 March 2025, affecting €26 billion of EU exports.

The EU’s planned response includes reinstating its original 2018 and 2020 measures on 1 April and imposing new tariffs on an additional €18 billion worth of US goods mid-April. The Commission launched a consultation with stakeholders on 12 March to finalise the list of affected products, which may include industrial goods, textiles, home appliances, steel derivatives, and a selection of agricultural products such as poultry, beef, dairy and vegetables.

economic fallout and industry frustration

As reported by db, the financial sector has already reacted. Shares in European drinks giants Pernod Ricard and Rémy Cointreau slid, while LVMH, owner of Moët & Chandon, also suffered losses. On Wall Street, the S&P 500 edged lower on concerns over the escalating dispute.

Producers on both sides of the Atlantic warn that tariff retaliation will hurt businesses more than governments. EU wines rely heavily on US consumers — the largest export market for the bloc’s vintners. Meanwhile, American whiskey distillers recall the damaging impact of the 2018 EU tariffs, which led to a 41% drop in exports to Europe.

A delicate balancing act in a globalised sector

President Ursula von der Leyen struck a conciliatory tone, reminding US counterparts that transatlantic trade has “brought prosperity and security to millions of people” and supported jobs on both continents. But within the wine and spirits industry, patience is wearing thin.

Tariffs, history shows, rarely remain confined to their intended targets. They ripple outward — disrupting supply chains, suppressing investment and driving up costs for businesses and consumers alike. In the case of wine and whiskey, two of the world’s most culturally and economically intertwined beverages, the stakes are especially high.

As the EU takes a breath ahead of April, the hope — however faint — is that diplomacy might yet prevail over tit-for-tat.