EU Delays Phase 1 of Retaliatory Tariffs Against US… Monitoring US Tariff Response

EU Leaves Room for Negotiation

Decision After Confirming US Response

Possibility of Simultaneous Implementation in Mid-April

The European Union (EU) announced on the 20th (local time) that it will delay the implementation of the first phase of retaliatory tariffs against the US, which was scheduled to begin on the 1st of next month. The EU Commission stated that it will decide on the final response plan after confirming the US's reciprocal tariff measures.

Maroš Šefčovič, EU Commissioner for Trade and Economic Security, said at the European Parliament's Trade Committee meeting held in Brussels, Belgium, "We will decide after observing the US response announcement on April 2," and "If a solution is not reached by mid-April, we will immediately implement retaliatory tariffs."

Reuters reported that the EU Commission also confirmed its plan to implement both Phase 1 and Phase 2 measures simultaneously in mid-April, instead of separately. Commissioner Šefčovič explained, "By delaying the implementation of Phase 1, we can secure time to discuss the items subject to Phases 1 and 2 with member states, and broaden the scope for negotiations with the US."

The EU had initially announced that it would impose retaliatory tariffs on US goods worth a total of 26 billion euros (about 41 trillion won) in two phases on the 1st and 13th of next month in response to the US's steel and aluminum tariffs (25%).

The Phase 1 measures included imposing up to 50% additional tariffs on symbolic US products worth 8 billion euros (about 12 trillion won), such as bourbon whiskey and Harley-Davidson motorcycles. The Phase 2 measures targeted items worth a total of 18 billion euros (about 29 trillion won) produced in key Republican regions, with plans to finalize the specific list by the 26th of this month.

However, the situation changed rapidly as US President Donald Trump raised an issue with the whiskey tariffs included in the Phase 1 measures and warned of imposing a 200% tariff on all alcoholic beverages, including EU wines. As a result, concerns began to emerge within the EU about the impact of retaliatory tariffs on its own economy.

French Prime Minister François Bayrou criticized on the 16th, saying, "The selection of items subject to Phase 1 measures, including whiskey, was the result of indiscriminately reusing an old tariff list," calling it a "mistake." At the Trade Committee meeting, some members agreed on the necessity of retaliatory tariffs but argued for cautious action considering the negative impact on the EU industry.

The EU Commission's decision to delay the implementation of Phase 1 just ten days before it was scheduled reflects the concerns of member states and related industries.

Reporter Sohyun Lee y2eonlee@hankyung.com