E.U. Suspends Tariff Retaliation for 90 Days Following Trump’s Tariff Pause
BRUSSELS — The European Commission, the E.U.’s executive body, announced Thursday it would suspend planned retaliatory tariffs for 90 days, matching President Trump’s temporary halt on new tariffs and allowing for potential negotiations.
European Commission President Ursula von der Leyen acknowledged President Trump’s announcement, noting that the commission is responsible for trade matters for the E.U.’s 27 member states.
The planned tariffs on $23 billion worth of U.S. products will be paused for 90 days to facilitate negotiations, according to von der Leyen’s statement.
However, she cautioned that countermeasures would be implemented if negotiations proved unsuccessful.
Trump had imposed a 20% tariff on E.U. goods as part of a broader tariff campaign but announced a 90-day suspension to allow for negotiations addressing U.S. trade concerns. The baseline tariff facing countries subject to the pause will be 10%.
Prior to Trump’s announcement, E.U. members had approved retaliatory tariffs on $23 billion worth of goods in response to the U.S.’s 25% tariffs on steel and aluminum imports, which took effect in March. The E.U., the U.S.’s largest trading partner, deemed these tariffs “unjustified and damaging.”
The E.U.’s tariffs were scheduled to be implemented in phases, beginning on April 15, May 15, and December 1. A specific list of affected goods was not immediately provided by the E.U. commission.
E.U. members have expressed a preference for a negotiated resolution to the trade dispute, aiming to avoid economic harm on both sides. The bloc’s top trade official has been actively engaged in discussions in Brussels and Washington to prevent further escalation.
The targeted goods represent a small portion of the $1.8 trillion in annual U.S.-E.U. trade. Approximately $4.4 billion in goods and services are exchanged daily, forming what the European Commission considers “the most important commercial relationship in the world.”
The E.U. has employed targeted tariffs on specific goods to exert political pressure and minimize economic damage from a wider trade war.
The E.U. is also developing additional countermeasures in response to Trump’s suspended 20% tariff on all European goods, potentially including measures targeting U.S. tech companies, the services sector, and trade in goods.
Von der Leyen affirmed Europe’s intention to diversify its trade partnerships.
She stated that the E.U. will continue to engage with countries representing 87% of global trade, sharing a commitment to free and open exchange and working to reduce barriers within its own single market.
“Together, Europeans will emerge stronger from this crisis,” von der Leyen said.
—McHugh reported from Frankfurt, Germany