E.U. officials announced on Thursday that they would delay their plans for retaliatory tariffs following President Trump's decision to pause some levies imposed on Europe and other regions.
Trump's announcement, made a day prior, indicated a potential willingness to negotiate, which European leaders welcomed. This shift from Washington occurred just hours after European officials had approved retaliatory levies of 10 to 25 percent on approximately $23 billion of U.S. imports. In light of the American change in stance, E.U. leaders declared a 90-day pause on their retaliatory measures.
Ursula von der Leyen, president of the European Commission, stated, "If negotiations are not satisfactory, our countermeasures will kick in," while also noting that preparatory work on further countermeasures would continue.
The Trump administration is specifically pausing what it refers to as "reciprocal" tariffs, which are taxes applied at varying rates to different countries. Initially announced on April 2, these tariffs included a proposed 20 percent levy on the European Union. With the recent reversal, the bloc is likely to face a 10 percent across-the-board tariff for the next 90 days.
However, the 25 percent tariffs imposed on cars, steel, and aluminum remain in effect. The approved European retaliation was in response to these metal-sector tariffs, not the ones that have now been delayed. The retaliation plan included tariffs of 10 to 25 percent on a variety of goods, such as soybeans, peanut butter, and hair spray. Olof Gill, a spokesman for the European Commission, indicated that officials would take time to analyze and reflect on the situation.
White House officials expressed optimism that Europe’s retaliation would not commence on April 15 as originally planned. U.S. Commerce Secretary Howard Lutnick suggested that the 90-day delay would provide time for negotiations without immediate pressure.
European officials have been actively seeking a deal with their American counterparts. Von der Leyen has recently advocated for a zero-for-zero tariff agreement between the E.U. and the U.S., emphasizing that "tariffs are taxes that only hurt businesses and consumers."
Despite the pause, European officials remain focused on establishing new trade alliances and enhancing competitiveness to reduce reliance on the United States. Von der Leyen remarked, "This crisis has made one thing clear: in times of uncertainty, the single market is our anchor of stability and resilience."
As Europe navigates this situation, uncertainty persists regarding which tariffs are delayed and which remain active. Gill acknowledged the fluidity of the situation, stating, "Forgive me if I get this wrong. Things are moving fast. At the moment, we’re all doing our best."