EU Suspends Retaliatory Tariffs on US Goods Amid Trade Negotiations

The European Union has put a hold on its proposed 25% tariffs on US goods for a period of 90 days following a dramatic reversal by Donald Trump. Ursula von der Leyen, the president of the European Commission, announced that the EU will suspend its retaliatory measures, valuing approximately €21 billion, which were set to take effect imminently.

In a bid to foster dialogue, von der Leyen stated, “We want to give negotiations a chance.” The pause on the countermeasures occurs alongside Trump’s own suspension of higher tariffs for the same duration. This new agreement means that the EU will face a lesser duty of 10% on its exports to the US, instead of the previously planned 20% “reciprocal tariff” for the next three months.

Despite this temporary reprieve, Trump’s initial 25% tariffs on steel, aluminium and cars remain in effect. Von der Leyen expressed optimism about the developments, describing Trump’s announcement as “an important step towards stabilising the global economy.” Just prior to this, EU member states rapidly voted almost unanimously to implement the 25% tariffs in retaliation for the US’s earlier metal tariffs.

The response from the EU reflects a strategic decision to maintain open lines of communication with the US. Olof Gill, a spokesperson for the European Commission, noted that the decision to delay retaliation is about allowing space for negotiations. As a result, proposals for further retaliatory measures planned for upcoming publications have also been frozen.

Both the EU and Trump administration seem poised for discussions, with von der Leyen reiterating the EU’s willingness to pursue a tariff-free trade agreement that encompasses cars and industrial goods. This follows a recent public endorsement from Elon Musk for reducing tariffs between Europe and the US.

Voices across Europe welcomed the pause, viewing it as an opportunity for meaningful negotiations. Spanish Prime Minister Pedro Sánchez noted the US tariffs pause as “a door to negotiation.” As discussions continue, Spain is coordinating efforts with the EU to shield its exporters from potential fallout.