EU Postpones 50% Tariff on U.S. Whiskey, Buying Time for Talks

On March 20, 2025, the EU delayed its 50% tariff on U.S. goods—including American whiskey—from April 1 to April 13. The delay offers a short reprieve, but uncertainty persists as trade talks intensify. The tariffs, a response to U.S. duties on EU steel and aluminum, were set to hit whiskey and motorcycles first, with beer and poultry to follow. Now, all measures shift to April 13, giving negotiators a brief window to break the deadlock. In 2024, the EU accounted for $699 million—44% of all U.S. whiskey exports. A 50% tariff could cripple this vital market if talks fail. Industry voices welcomed the pause but remain cautious.

Importers are rushing shipments to beat the April 13 deadline—a repeat of the 2018 stockpiling rush. Consumers brace for price hikes. The last 25% tariff slashed U.S. whiskey exports to the EU by 20% over three years; experts warn a 50% rate could spark an even steeper decline. Producers share the unease. “We’re still prepping for tariffs,” one distiller said. Beer, part of the second wave, remains in limbo, adding to the uncertainty across supply chains. Prolonged tariffs could shift demand to Canadian and other rival whiskey brands, eroding Bourbon’s edge.

Two critical deadlines loom. On April 2, Trump’s proposed 200% tariffs on EU spirits, including Cognac, could ratchet up tensions just before U.S. Commerce Secretary Howard Lutnick meets EU Trade Commissioner Maroš Šefčovič. Then, on April 13, the EU’s tariffs take effect if no deal is struck, risking a deeper trade rift. A resolution could restore the “zero-for-zero” model that’s long powered transatlantic spirits trade. The Distilled Spirits Council’s Chris Swonger calls it “a positive step,” but the outcome remains uncertain.

With just weeks left, the stakes are high. A breakthrough could avert a tariff war—but if talks collapse, the fallout could be severe.

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