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The European Union on Thursday, April 10, suspended for 90 days its intended counter-tariffs on American products, after President Donald Trump made an unexpected U-turn on his proposed tariff storm.
European Commission President Ursula von der Leyen assured the provisional halt in a statement as a window of opportunity for the two sides to go back to the negotiating table and try to find a solution to the simmering economic fight.
While agreeing on the adoption of the EU measures of retaliation that enjoyed good backing from our Member States, we will suspend them for 90 days,” von der Leyen declared.
“If we are not satisfied with the negotiations, our countermeasures will come into action.”
The European Union acted a day after its 27 member governments signed off on a package of retaliatory actions against more than €20 billion in US exports. The targeted list ranged over a broad universe of products — from soybeans and motorcycles to cosmetics — meant to strike hard at major US industries.
These countermeasures were a reaction to President Trump’s earlier proposed universal tariffs, such as a 20% tariff on EU products and further tariffs on steel, aluminium, and possibly automobiles. But the US administration’s dramatic about-turn earlier this week, setting out a 90-day halt to the envisaged tariffs, with a China exclusion, took many aback.
Trump’s action seemed to be a gesture to reduce tensions on the US economy as increasing domestic pressure about inflation and worldwide criticism over combative trade practices gathered steam.
Brussels Hails Halt, But Stays Cautious
Although the EU hailed Trump’s tariff truce, Brussels officials were swift to reassure that the bloc is still on guard. Von der Leyen reemphasized that Europe’s “preparatory work on further countermeasures continues” and the Commission is maintaining “all options on the table” in case negotiations fail to result in a significant agreement.
The EU is committed to constructive negotiations with the United States,” she said, terming the US halt as “an important step towards stabilising the global economy.
In spite of the suspension, the EU has indicated it won’t blink before imposing its intended tariffs if Washington fails to reciprocate with substantive trade engagement. Much of the EU’s anxiety is based on the existing US tariffs on European steel and aluminium exports and the lingering threats of auto tariffs, industries fundamental to European economies.
The temporary halt is a sensitive moment in transatlantic relations. An all-out trade war between the US and the EU would have a serious impact on global supply chains, increase prices for consumers, and further strain diplomatic ties.
Both sides are being put under pressure, economically and politically, to compromise. The EU is facing weakening growth and geopolitical tensions, and Trump is confronting domestic political headwinds in an election year, as well as mounting criticism of the likely inflationary effect of draconian import tariffs.
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