After President Donald Trump announced a similar pause on his “reciprocity” tariffs, the EU has announced a 90-day pause in response to the United States.
“We want to give negotiations a chance,” said Ursula von der Leyen, president of the European Commission.
The move comes after the EU initially announced it would begin a higher duty on U.S. imports, retaliating against Trump’s steel and aluminum tariffs announced in March.
After the EU finally responded, Trump said he would suspend reciprocal tariffs in dozens of countries within 90 days, citing 75 countries that have contacted the White House for open trade talks.
Von der Leyen stressed that the EU’s pause is not uncertain. “If the negotiations are not satisfied, our countermeasures will begin,” she warned.
The group in 27 countries was hit by three waves of U.S. tariffs: 25% of steel and aluminum exports, 25% of automobile exports, and 20% of reciprocal tariffs on other commodities. While Trump suspended reciprocity tariffs, he insisted that industry-specific taxes and 10% flat rate minimum tariffs in all countries will remain.
Despite the temporary relief from Trump’s sudden reversal in Europe, analysts and investors remained vigilant. The unpredictable nature of U.S. trade policy under Trump’s leadership can stop investment and slow global economic growth.
“Clearly, predictable conditions are crucial to the operation of trade and supply chains,” Von der Leyen said in another statement.
Despite the pause, Stéphane Séjourné, chief executive of industrial strategy at the European Commission, advised EU companies to remain “calm and cautious”. “The only certainty is that instability will remain instability over the next four years,” he added.
According to Von der Leyen, the EU adheres to its commitment to constructive negotiations with the United States, but it also strives to diversify trade relations, focusing on partnerships that account for 87% of global trade.
Olaf Gill, spokesman for the European Commission for Trade Affairs, said the group “pressed the pause button to allow space for negotiation” and consulted with member states on the best path forward.
Since returning to the White House in January, Trump has put a tougher tone on the EU and pointed out that the group is trying to “twist” the United States.
“They tore us apart,” he said last week when announcing widespread tariffs. “It’s so sad to see this. It’s so sad.”
Trump also criticized the EU’s VAT (the standard tax on most goods and services) as a “unfair” trade practice. He claimed that using a rough and widely controversial approach, the EU effectively imposed a 39% tariff on U.S. products. However, the European Commission pointed out that the actual average tariff rate for goods between the two sides is about 1%.
