The European Union delayed the entry into force of retaliatory tariffs on US goods, which were announced after the United States imposed 25% levies on steel and aluminum imports in the current month.
Retaliatory measures from Brussels, which included whiskey, were supposed to take effect on April 1. Primordially, the process of implementing the appropriate solution in a practical plane was phased. Instead, the European Union decided to act differently. Retaliatory tariffs against the United States will take effect in the middle of next month and will be imposed immediately in full. The corresponding statement was made by the European Commission on Thursday, March 20.
The originally planned first phase of the imposition of retaliatory trade measures by Brussels provided for the entry into force of 50% tariffs on whiskey, motorcycles, and motorboats imported from the United States. The implementation of the second stage of this process was scheduled to begin on April 13. This phase of the tightening of Brussels’ trade policy included tariffs on imports of beer, poultry, beef, and products such as soybeans, tomatoes, and raspberries.
The new decision of the European Union stipulates that all mentioned levies will enter into force on April 13 simultaneously. These measures to tighten Brussels’ trade policy will affect exports of US goods worth about 26 billion euros ($28 billion).
European Commission spokesperson Olof Gill said in a media comment that the first stage of the retaliatory tariffs coming into force had been delayed to allow additional time for discussions between Brussels and Washington. It was also noted that this change is a slight adjustment to the timeline, but does not reduce the impact of the response.
The mentioned decision can be described as an unambiguous signal that the European Union still perceives as a realistic possibility that, as part of the negotiation process with the United States, an agreement can be reached on improving trade relationships between the two shores of the Atlantic Ocean.
US President Donald Trump said that starting on April 2, Washington will announce a host of new tariffs of tariffs shipped to the United States from around the world. Separately, he noted that the appropriate measures are provided for by the package of reciprocal levies. Donald Trump also said that next month the United States will impose new, higher tariffs on imports of goods such as lumber, automobiles, and copper.
White House Press Secretary Karoline Leavitt said on Thursday that the delay, which was decided by the European Union, reflects the extent to which countries are taking the US president seriously. According to her, the EU understands that Donald Trump is going to do what’s right for American workers and families. Karoline Leavitt also stated that the US president and his team are in constant communication with European counterparts.
United States Distilled Spirits Council president and chief executive officer Chris Swonger, commenting on the decision of the European Union, which was announced on Thursday, said that 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.
It is worth mentioning that after Brussels announced its intentions regarding retaliatory levies, Donald Trump immediately threatened to impose 200% duties on European wine and spirits.
Maros Sefcovic, the European Union commissioner for trade and economic security, said on Thursday that discussions with the United States would continue. He has been entrusted by European Commission President Ursula von der Leyen to continue talks to try to find a solution with the US. The relevant information is contained in a written version of Maros Sefcovic’s remarks at the European Parliament’s International Trade Committee. He also underlined his cooperation with counterparts from the United States, aimed at better understanding Washington’s plans and looking for possible solutions. According to him, on April 2, the European Union will need to assess the actions taken by the US and adhere to a flexible approach to calibrate the response.
European Central Bank President Christine Lagarde warned on Thursday, speaking at a European Parliament hearing, that the trade war could be a factor pushing up inflation in the eurozone by half a percentage point. The realization of the corresponding probability will mean a negative impact on economic growth in the region. Christine Lagarde also noted that the growing trade tensions and the weakening of the euro could complicate monetary policy.
The head of the European Central Bank also warned that price pressures driven by tariffs are expected to intensify. She noted that although inflation remains at the same level, increased uncertainty in trade, especially related to Washington’s actions, could disrupt the recovery process in the eurozone and trigger a growth in the cost of goods and services.
As Christine Lagarde underlined, trade frictions are a source of negative impact on global economic growth and welfare. She also stated that retaliatory tariffs and disruptions in supply chains could lead to higher costs for European businesses and consumers.
According to the head of the European Central Bank, the administration of Donald Trump has embarked on a different course, leading to exceptionally high levels of uncertainty regarding global trade.
It is worth noting that the tariff confrontation will become a sensitive factor for all participants in the relevant process. For example, many economists warned last year, when Donald Trump’s tariffs were intentions rather than actions, that Washington’s tightening trade policy could trigger accelerated inflation in the United States.
The European Central Bank’s analysis predicts that US 25% tariffs on goods imported from the European Union will reduce the growth of the eurozone’s gross domestic product (GDP) by about 0.3% in the first year. It was also noted that countermeasures from Brussels could increase the mentioned figure to 0.5%.
Christine Lagarde said that the brunt of the impact of tariffs on economic growth would concentrate in the first year after the levies rise. According to her, it would diminish over time, leaving a persistent negative effect on the level of output.
Christine Lagarde noted that retaliatory measures from Brussels and the weakening of the euro, associated with a decrease in consumer demand for European goods in the United States, could lift inflation by about half a percent.
Last year, the eurozone economy showed growth of 0.9%. In 2023, the region’s GDP increased by 0.4%. Christine Lagarde noted that in the last months of 2024, the growth of the eurozone economy slowed down. Also, according to her, a similar tendency remained in the first quarter of 2025.
Christine Lagarde stated that manufacturing is still contracting, although survey indicators are improving. She also noted that high domestic and global policy uncertainty deters investment, and competitiveness challenges put pressure on exports.
Despite the difficult circumstances and prospects, which are clearly not optimistic, the European Central Bank continues to forecast economic growth. It is worth noting that in this case, an upward dynamic is expected, characterized by a moderate pace. The financial regulator predicts that in the current year, the eurozone economy will show growth of 0.9%. In 2026, the European Central Bank expects the region’s GDP to increase by 1.2%. The forecast for 2027 provides for the growth of the eurozone economy by 1.3%. Christine Lagarde clarified that these forecasts are subject to considerable uncertainty, also owing to the trade policy environment.
In February, headline inflation in the eurozone dropped to 2.3% from 2.5% in January. The European Central Bank expects inflation in the region to average 2.3% in 2025. At the same time, the target of the financial regulator is 2%. The European Central Bank expects that the mentioned indicator will become a fact of economic reality in 2027. The main factor impacting the current dynamic of inflation in the eurozone was the moderation of wage growth. The mentioned process slowed down after a sharp surge in response to the inflation spike following the end of the coronavirus pandemic.
Christine Lagarde warned that the inflation outlook remains fragile, especially in the face of potential trade shocks that could drive up costs. In her view, the answer to the current shift in the United States trade policies should be more, not less, trade integration, both with trade partners around the globe and within the European Union. She said that the Single Market is a critical tool for boosting European economic resilience, estimating that it has added between 12% and 22% to long-term EU GDP. Christine Lagarde also noted that the level of trade between Member States has doubled since its creation.
Nevertheless, for Brussels, in the context of the approaching reality of intensifying tariff confrontation, the main question is probably not how to avoid the consequences of a tougher Washington trade policy, since this is an unrealistic goal, but how to minimize the corresponding effects.
As we have reported earlier, Canada to Impose Retaliatory Tariffs on US Goods.
