#eutariffs

The European Union has announced a 90-day pause on its planned retaliatory tariffs against the United States following a surprise move by former President Donald Trump to suspend most of his recently imposed trade duties.

European Commission President Ursula von der Leyen confirmed the EU’s decision on Thursday, noting that while preparations for countermeasures had been finalized with strong support from member states, the bloc would delay their implementation in hopes of reopening negotiations.

“We want to give diplomacy a chance,” von der Leyen posted on X (formerly Twitter). “We are putting our countermeasures on hold for 90 days while we assess the path forward.”

The EU had been preparing to levy additional tariffs on roughly €21 billion worth of U.S. goods—including maize, motorcycles, poultry, and clothing—in response to Trump’s 25% tariffs on steel and aluminium. Although the planned tariffs are now suspended, von der Leyen warned that the EU remains ready to act if talks fail to produce a fair outcome.

“If negotiations are not satisfactory, our countermeasures will kick in,” she said. “All options remain on the table.”

Market Relief, Lingering Risks Trump’s abrupt reversal on Wednesday came less than a day after a sweeping set of tariffs rattled global financial markets, erasing trillions in stock value and driving U.S. bond yields higher. His decision to suspend most of the duties sparked a global market rebound, with U.S., Asian, and European indexes all posting gains.

Still, the White House clarified that a 10% blanket duty on most U.S. imports remains in effect, along with tariffs on autos, steel, and aluminium. Canada and Mexico are also still subject to 25% fentanyl-related tariffs under provisions of the U.S.-Mexico-Canada Agreement (USMCA).

Trade Tensions with China Escalate Despite softening his stance with the EU and other trading partners, Trump has continued to escalate trade tensions with China. This week, he raised tariffs on Chinese imports from 104% to 125% and signed an executive order aimed at weakening China’s influence in global shipping while reviving American shipbuilding.

China hit back with its own retaliatory measures—imposing up to 84% in duties on U.S. goods—and warned Washington against further “threats and blackmail.”

“The door is open for dialogue, but only on the basis of mutual respect,” China’s Ministry of Commerce said.

Europe Treads Carefully While markets welcomed the temporary truce, European policymakers remain cautious. ECB official François Villeroy de Galhau described the move as “less bad news,” warning that prolonged uncertainty still threatens economic trust and stability.

“The pressure may be easing, but confidence is fragile,” he said in an interview with France Inter radio.