EU Tariff War Continues to Escalate

As of March 12, 2025, the U.S. has officially implemented the 25% tariffs on steel and aluminum imports, prompting swift reactions from global markets and political leaders. Subsequently, the EU has announced plans to impose retaliatory tariffs on approximately €26 billion ($28 billion) worth of U.S. goods starting April 1, 2025. This decision comes in direct response to President Donald Trump's enforcement of a 25% tariff on all steel and aluminum imports into the United States. The EU will impose retaliatory tariffs on U.S. products in two tranches. The EU’s announcement can be found here and is attached.

First, the EU will reinstate its suspended tariffs in the steel and aluminum dispute and impose a 50% tariff on American Whiskeys on April 1, 2025.?The EU’s regulation implementing its retaliatory tariffs can be found here.

Second, the EU launched a two-week stakeholder consultation on a new list of U.S. products. The second tranche (see here and attached), which covers €18 billion in U.S. imports, includes all U.S. spirits (2208) other than American Whiskeys, rum, vodka and brandy, which are already targeted in the steel and aluminum and WTO Boeing-Airbus disputes.? This includes gin, liqueur and cordials, and spirits in the “other” category. The EU’s list also includes wines (2204), beer (2203), vermouth (2205), cider and sparkling alcohols (2206).

European Commission President Ursula von der Leyen emphasized that while the EU regrets the escalation, it is prepared to defend its economic interests. She highlighted concerns that such tariffs could jeopardize jobs, increase consumer prices, and disrupt supply chains on both sides of the Atlantic. This is not the first instance of such trade tensions. During President Trump's first term, similar tariffs were imposed, leading to EU countermeasures that targeted U.S. products like motorcycles, bourbon, and jeans. And now, just today,?Trump?announced a threat of?potential 200% tariffs on EU alcoholic beverages as the trade war continues to escalate.

We will continue to monitor this situation and provide updates as available.

If you have any questions, please feel free to contact us or email us for information at: [email protected].

Source: Wine and Spirits Shippers Association, Inc.

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