In a significant move to de-escalate rising trade tensions, European Commission President Ursula von der Leyen announced on Thursday that the European Union will pause its planned countermeasures against U.S. tariffs. The decision comes after U.S. President Donald Trump unexpectedly rolled back a large portion of the tariffs he had recently imposed on multiple countries.
The 27-member bloc had been preparing to impose retaliatory tariffs on $23.25 billion (€21 billion) worth of U.S. imports, set to take effect next Tuesday. These countermeasures were in response to Trump’s 25% tariffs on steel and aluminium.
“We want to give negotiations a chance,” von der Leyen stated in a post on X (formerly Twitter). “While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.”
The move comes as a relief to global markets, which had been rattled by Trump’s aggressive tariff policy. On Wednesday, just one day after the steep new duties took effect, the U.S. president abruptly paused most of the tariffs, triggering a sharp rebound in global financial markets.
U.S. stock indexes soared on the news, with the positive sentiment carrying over into Asian and European markets. Prior to the reversal, the uncertainty had reportedly wiped trillions of dollars from global markets and driven U.S. government bond yields to unsettling highs—factors believed to have influenced Trump’s decision.
Despite the temporary easing of tensions with the EU, Trump intensified his trade war with China. He announced a hike in tariffs on Chinese imports from 104% to a staggering 125%, and signed an executive order aimed at curbing China’s dominance in the global shipping industry while revitalizing American shipbuilding.
In response, China condemned the U.S. actions, accusing Washington of “threats and blackmail.”
As negotiations begin, the EU continues to monitor the situation, particularly regarding U.S. car tariffs and broader 10% levies that remain in place.
Comments