UPDATED (at 13h on Thursday 10 April):
The European Union’s executive commission said on Thursday it will put its retaliation measures against new US tariffs on hold for 90 days to match President Donald Trump’s pause on his sweeping new tariffs and leave room for a negotiated solution.
European Commission President Ursula von der Leyen said that the commission, which handles trade for the 27 member countries, ‘took note of the announcement by President Trump’.
New tariffs on 20.9 billion euros of US goods will be put on hold for 90 days because ‘we want to give negotiations a chance’, she said in a statement.
But she warned: ‘If negotiations are not satisfactory, our countermeasures will kick in.’
Trump imposed a 20% levy on goods from the EU as part of his onslaught of tariffs against global trading partners but has said he will pause them for 90 days to give countries a chance to negotiate solutions to US trade concerns.
Original full report:
European stock markets rebounded sharply in early deals on Thursday after US President Donald Trump abruptly paused steep tariffs on most countries.
The Euro Stoxx 50, which groups the continent’s largest firms, posted a 6% rise, similar to that seen in Frankfurt, Paris, and the Ibex 35, following rallies on Wall Street and in Asia.
European markets had fallen around 3% on Wednesday after Trump’s punishing tariffs came into force and China retaliated with its own massive duties against US levies.
But Trump backtracked after European stock markets closed, suspending the higher tariffs against all countries except China.
‘I have authorised a 90 day PAUSE,’ Trump announced on social media, after recognising the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.
The US leader, however, left a baseline 10% tariff intact and ramped up his trade war with Beijing by hiking tariffs against Chinese goods to 125%.
The EU’s rate was 20%, but it was not entirely clear how the 27-nation bloc would be impacted.
European Commission President Ursula von der Leyen (main image) said on Thursday that she welcomed Trump’s decision to temporarily halt most US tariffs, but she did not say whether the European Union intends to press ahead with its own retaliatory measures.
Von der Leyen described the halt on reciprocal tariffs as ‘an important step towards stabilising the global economy. Clear, predictable conditions are essential for trade and supply chains to function’.
‘Tariffs are taxes that only hurt businesses and consumers,’ the EU Commission president said. ‘That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.’
‘The European Union remains committed to constructive negotiations with the United States, with the goal of achieving frictionless and mutually beneficial trade. At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas.’
Before Trump’s announcement on Wednesday, EU member countries voted to approve retaliatory tariffs on $23 billion in goods in response to his 25% tariffs on imported steel and aluminum. The EU, the largest trading partner of the US, described them as ‘unjustified and damaging’. ALSO READ: From motorbikes to beauty products: EU announces first tariffs to hit back at US.
The tariffs are set to go into effect in stages, some on 15 April and others on 15 May and 1 Dec. The bloc’s top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict.
But Von der Leyen gave no sign that the EU’s timetable has changed. Spokesman Olof Gill noted that the commission ‘will now take the necessary time to assess this latest development, in close consultation with our member states and industry, before deciding on next steps’.
Members of the EU – the world’s largest trading bloc – repeated their preference for a negotiated deal to settle trade issues, and von der Leyen underscored that commitment, ‘with the goal of achieving frictionless and mutually beneficial trade’.
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