BRUSSELS: The European Union on Thursday announced a 90-day suspension of its planned counter-tariffs on United States imports, following President Donald Trump’s unexpected decision to temporarily pause a series of sweeping new trade duties.
European Commission President Ursula von der Leyen confirmed the pause, saying that the bloc was willing to give diplomacy a chance before proceeding with retaliatory measures.
“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,” von der Leyen posted on social media platform X.
We took note of the announcement by President Trump.
We want to give negotiations a chance.
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.
If negotiations are not satisfactory, our…
— Ursula von der Leyen (@vonderleyen) April 10, 2025
“We want to give negotiations a chance.”
The EU had been preparing to impose counter-tariffs on €21 billion (US$23.25 billion) worth of US goods, including maize, wheat, motorcycles, poultry, fruit, and clothing, in response to Trump’s 25% tariffs on steel and aluminium imports.
The bloc is still assessing its response to the broader 10% levies and additional duties on US car exports.
President Trump’s decision, made late Wednesday, to pause most of the new tariffs came amid sharp financial market turmoil.
The tariffs, which had been in effect for less than 24 hours, triggered a bout of volatility that wiped nearly US$6 trillion from the value of S&P 500 companies over four trading days—marking the steepest such drop since the 1950s, according to Bloomberg data.
The pause brought immediate relief to global financial markets. Major US stock indexes surged, and the recovery extended into European and Asian trading on Thursday.
In Europe, government bond yields rose, spreads narrowed, and expectations for further European Central Bank interest rate cuts were revised down.
Despite the partial reprieve, the White House clarified that a 10% blanket duty on nearly all US imports remains in place.
Existing duties on autos, steel, and aluminium are also unaffected. Additionally, the tariff relief does not apply to Canada and Mexico, whose exports remain subject to a 25% fentanyl-related levy unless they fully comply with the rules of origin set out in the US-Mexico-Canada Agreement (USMCA).
While easing trade tensions with Europe, President Trump simultaneously escalated pressure on China.
On Thursday, he raised tariffs on Chinese imports to 125%, up from the 104% rate imposed the previous day.
He also signed an executive order aimed at reducing China’s influence in global shipping and reviving the US shipbuilding industry.
China responded sharply. “If the US insists on its own way, we will follow through to the end,” warned He Yongqian, spokesperson for China’s Ministry of Commerce.
He stressed that Beijing remains open to dialogue, but only on the basis of mutual respect.
The trade standoff with China has pushed the Chinese yuan to its weakest level against the US dollar since the global financial crisis.
In response to earlier US tariffs, China imposed duties of up to 84% on a range of American imports.
Von der Leyen acknowledged that Trump’s shift was a positive signal. “This move is an important step towards stabilising the global economy,” she said.
However, she made clear that the EU’s restraint was conditional. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. All options remain on the table.”
Meanwhile, central bankers in Europe remained cautious. François Villeroy de Galhau, a member of the European Central Bank’s Governing Council, said in a radio interview that while the tariff pause was “less bad news,” persistent uncertainty continued to undermine market confidence and economic growth.
Oil prices, which had briefly rallied on the back of the tariff pause, retreated 2% on Thursday amid fears that the US-China trade conflict could still deepen and trigger a global recession.
