BRUSSELS โ On Thursday, European Commission President Ursula von der Leyen expressed approval of President Donald Trumpโs decision to suspend most U.S. tariffs temporarily. However, she refrained from confirming whether the European Union plans to proceed with its own countermeasures.
Trump announced, โI have authorized a 90-day PAUSE,โ after acknowledging the more than 75 countries that have been engaged in trade negotiations and refrained from retaliating against his recent tariff increments. For those countries, tariffs will now be applied at a rate of 10%. Originally, the EUโs tariff rate stood at 20%, yet the implications for the 27-nation bloc under the new scheme remain somewhat unclear.
Notably absent from this pause is China, which faces an increased tariff rate of 125% on its imports by the U.S.
Von der Leyen hailed the halting of reciprocal tariffs as โan important step towards stabilizing the global economy,โ asserting that clearly defined and predictable conditions are crucial for the effective operation of trade and supply chains.
Before Trumpโs communication on Wednesday, EU member states decided to greenlight retaliatory tariffs targeting $23 billion worth of goods. This decision was a response to the U.S. imposing a 25% tariff on imported steel and aluminum, which the EU, a major U.S. trading ally, labeled as โunjustified and damaging.โ
These tariffs are slated for phased implementation on April 15, May 15, and December 1, though the EU commission has not yet detailed the specific goods affected. Over recent weeks, the blocโs chief trade negotiator has been actively visiting Brussels and Washington to try to diffuse any rising tensions.
Despite Trumpโs recent announcement, von der Leyen did not indicate any changes to the EUโs set timeline.
Members of the European Unionโrecognized as the most significant trading bloc worldwideโhave consistently expressed a preference for a negotiated settlement to trade disputes. Von der Leyen emphasized this ongoing commitment, aiming for โfrictionless and mutually beneficial trade.โ
Moreover, she indicated that the EU is still intent on broadening its network of trade partnerships. The bloc plans to keep โengaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas,โ with an intent to reduce commerce barriers within its single market.
โTogether, Europeans will emerge stronger from this crisis,โ von der Leyen confidently stated.