The European Union has decided to suspend its initial retaliatory measures against the United States following President Donald Trump’s temporary rollback of the significant tariffs he recently introduced on numerous countries, European Commission President Ursula von der Leyen confirmed on Thursday.
The EU had been preparing to implement counter-tariffs on approximately €21 billion ($23.25 billion) worth of American goods starting next Tuesday, in response to the 25% tariffs imposed by Trump on steel and aluminium. The European Commission is still evaluating its approach to U.S. car tariffs and the wider 10% duties that remain in place.
“We want to give negotiations a chance,” von der Leyen said on X. “While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.”
Trump’s abrupt decision on Wednesday to pause most of the new levies provided a welcome boost to shaken global markets and reassured world leaders, despite escalating tensions in the ongoing trade dispute with China.
The reversal came fewer than 24 hours after the new tariffs had taken effect, following a turbulent period of market volatility not seen since the early stages of the COVID-19 pandemic.
U.S. stock indices rallied sharply on the announcement, with positive momentum carrying over into trading sessions in Asia and Europe on Thursday.
Prior to Trump’s policy shift, the turbulence had wiped trillions from global markets and triggered a concerning rise in U.S. government bond yields, which appeared to prompt the President’s change in approach.
However, Trump has maintained his hardline stance against China, the world’s second-largest economy and a major supplier of U.S. imports, by raising tariffs on Chinese goods from 104% to 125%.
He also signed an executive order aimed at reducing China’s influence over the global shipping sector and revitalising domestic shipbuilding in the United States.