EU Freezes Tariff Retaliation Amid Trade Talks with US

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EU Freezes Tariff Retaliation Amid Trade Talks with US

Brussels: The European Union has agreed to a 90-day halt on its planned counter-tariffs against the United States, following a similar move by President Donald Trump, who announced a temporary pause on his so-called “reciprocal” tariffs.

European Commission President Ursula von der Leyen said Thursday that the pause was meant to allow time for diplomatic discussions. “We want to give negotiations a chance,” she stated.

Just a day earlier, the EU had signaled it would raise import duties on US goods in retaliation for the US’s steel and aluminum tariffs, which were introduced by Trump in March. But shortly after the EU revealed its response, the US president backtracked on part of his aggressive trade measures, announcing a temporary suspension of tariffs on dozens of countries. He claimed more than 75 nations had approached his administration to discuss trade agreements.

Von der Leyen made clear, however, that this was not an indefinite truce. “If negotiations are not satisfactory, our countermeasures will kick in,” she warned. The EU has been hit with a series of US tariffs, including a 25% duty on steel and aluminum, 25% on automobiles, and a 20% levy on other products.

While Trump paused the so-called “reciprocal” tariffs, he maintained the industry-specific ones — including a blanket 10% tariff on all imports — would remain in place.

Though the temporary climbdown was welcomed in Europe, market analysts cautioned that Trump’s unpredictable trade tactics could dampen investor confidence and weigh on global economic growth. “Clear, predictable conditions are essential for trade and supply chains to function,” von der Leyen said in a separate statement.

Stéphane Séjourné, who leads the EU’s industrial policy, advised European businesses to stay vigilant, stating, “The only certainty is that instability will remain for the next four years,” in a post on X.

While the EU remains open to dialogue with the US, von der Leyen emphasized that the bloc is also working to diversify its global trade relationships, engaging with countries that collectively represent 87% of global commerce.

EU trade spokesperson Olaf Gill confirmed that the bloc’s temporary pause is intended to create space for diplomatic engagement and consultation among member states to form a unified response.

Since returning to the presidency in January, Trump has taken a much harsher stance toward the EU than during his first term. “They rip us off,” he said during a press conference, accusing the bloc of exploiting the US economy.

He also took aim at the EU’s value-added tax system, calling it a hidden tariff that unfairly targets American goods. Trump claimed — using a disputed methodology — that the EU imposes an average tariff of 39% on US imports, a figure sharply contradicted by official EU data showing an average tariff of just 1% on goods traded between the two economies.

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