- The EU paused its retaliatory tariffs for 90 days after Trump temporarily lowered U.S. duties for most nations.
- President Trump maintained a 125% tariff on China, while reducing others to 10% to encourage negotiations.
- EU officials welcomed the pause but warned that countermeasures are ready if talks fall short.
The European Union’s about-face on retaliatory tariffs is turning heads. Just a day after President Donald Trump announced a temporary ease on most U.S. import duties, European Commission President Ursula von der Leyen said the bloc will hit the brakes too—at least for now.
Speaking Thursday, von der Leyen confirmed a 90-day pause on the EU’s counter-tariffs, originally set to go live April 15. “We took note of the announcement by President Trump. We want to give negotiations a chance,” she said. But the message came with a warning: “If talks fall short, our countermeasures will kick in. We’re still prepping for that. All options are on the table.”
The EU’s retaliation package—sparked by Trump’s 25% tariffs on steel and aluminum last month—was approved by member states just Wednesday. It hasn’t been fully revealed yet, but leaked drafts mention everything from poultry to heavy machinery.
Trump’s 10% Move Sends Markets Soaring
Trump shook things up midweek by announcing that most nations would now face a flat 10% tariff for 90 days while trade talks unfold. China, notably, wasn’t offered that courtesy—instead, its tariffs were bumped up to a jaw-dropping 125%.
The move sent U.S. markets soaring, and the ripple effects were felt globally. European and Asia-Pacific indexes joined the rally Thursday, and the euro climbed 1.2% against the dollar, trading around $1.1079 midday in London.
Von der Leyen seemed cautiously optimistic. “This is an important step toward calming the global economy,” she said. “Tariffs are taxes, plain and simple. They hurt consumers and businesses alike.” She also floated the idea of a zero-for-zero tariff agreement between the EU and U.S., something she’s long supported.
Behind the Smiles, Tension Remains
Despite the temporary ceasefire, tensions between the EU and Trump’s White House haven’t exactly vanished. Trump has blasted the 27-nation bloc repeatedly this year, accusing it of “treating the U.S. very unfairly” in goods trade.
In reality, the numbers suggest a more balanced picture when services and investments are factored in. Still, the EU isn’t sitting still. Officials say they’re working to diversify their trade deals globally and cut red tape within the single market—basically trying to future-proof their economy from more Trump turbulence.
There’s also chatter in Brussels about going after U.S. tech services next if things go south. So yeah, this pause? It might just be a breather.
