Brussels says move creates space for negotiations but warns tariffs may return if talks stall
The European Union will suspend its planned retaliatory tariffs on US goods for 90 days, European Commission President Ursula von der Leyen announced on Thursday, following a surprise decision by US President Donald Trump to temporarily lower the scope of sweeping tariffs imposed on US trading partners.
Von der Leyen said the EU was pausing the adoption of its first tranche of countermeasures—25% tariffs on €21bn worth of US goods including wheat, poultry, fruit and clothing—after taking “note of the announcement by President Trump”.
“We want to give negotiations a chance,” she said. “If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”
The pause follows an EU Council vote on Wednesday endorsing the package of retaliatory measures, originally set to take effect on 15 April in response to US tariffs of 25% on steel and aluminium that came into force last month. The EU’s duties were structured to target politically sensitive exports from the US, and additional proposals had been expected as early as next week.
But hours after the EU vote, Trump abruptly reversed course on a portion of his own tariff regime, slashing a newly imposed “reciprocal tariff” rate on most trade partners from 20% to 10% for a 90-day period. The White House framed the move as a window for trade negotiations, though key tariffs—particularly the 25% duties on steel, aluminium and autos—remain in effect.
Trump’s decision sent markets soaring. US equities rebounded sharply on Wednesday, while European and Asia-Pacific markets followed suit on Thursday. The euro strengthened 1.2% against the US dollar, trading at $1.1079 by midday London time.
Von der Leyen welcomed the US president’s partial tariff pause, describing it as “an important step towards stabilising the global economy”. However, she reiterated that the EU’s willingness to negotiate should not be mistaken for weakness.
“Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States,” she said.
EU Commission spokesperson Olof Gill said the bloc’s response had been deliberately calibrated. “We are not going to take the further step right now because we want new space for negotiations. We want to talk to our American counterparts,” he told reporters.
Asked whether the freeze could become permanent, Gill declined to speculate. “This thing is changing day by day, hour by hour,” he said. “I’m more worried about what might happen in 90 minutes. So let’s just deal with one thing at a time.”
Wider tensions and mixed messages
While the EU decision signals an openness to diplomacy, trade tensions remain high. Trump’s 10% universal duty still applies to most US imports, excluding Canada and Mexico, and the administration’s earlier tariffs on metals and autos remain intact.
According to White House economic adviser Kevin Hassett, the US is currently weighing tariff deal offers from at least 15 countries, including Vietnam, Japan and South Korea, with decisions on prioritisation expected soon.
Trump’s move came just a day after the new tariffs took effect, following market turmoil that erased trillions in value and pushed US government bond yields to unsettling highs—developments that reportedly caught Trump’s attention.
China, meanwhile, has not been spared. Trump increased tariffs on Chinese imports from 104% to 125% on Wednesday and signed an executive order aimed at curbing China’s influence in global shipping. Beijing responded with its own set of 84% tariffs and rejected what it described as “blackmail”.
China’s Commerce Ministry said it remained open to talks, but only on the basis of mutual respect. “If the US insists on its own way, China will follow through to the end,” spokesperson He Yongqian said.
European leaders urge unity, prepare for talks
In Europe, the temporary truce has been greeted with cautious optimism. Germany’s chancellor-in-waiting Friedrich Merz called Trump’s reversal “a reaction to the determination of the Europeans”, while Spanish Prime Minister Pedro Sánchez described it as “a door to negotiation and deals between countries”.
Speaking from a trade mission in south-east Asia, Sánchez also condemned the breadth of the US tariffs—particularly the 46% rate imposed on Vietnam—as “unjustified and unjust”. He said Spain’s response was being coordinated through Brussels and promised that “not a single business will be left exposed because of this measure”.
The European Commission has also committed to redoubling efforts to diversify the bloc’s trade relationships and reduce internal market friction. Discussions around a broader EU-US agreement—potentially covering cars and industrial goods—are expected to resume, with support from figures including Elon Musk, who recently endorsed zero tariffs across the Atlantic.
Despite the current pause, analysts and central bankers remain wary. European Central Bank policymaker François Villeroy de Galhau said the development was “less bad news” but warned that lingering uncertainty continues to threaten trust and economic growth.
Whether the EU and US can turn this temporary reprieve into a lasting settlement remains unclear. As Commission spokesperson Gill noted, “The key objective is to get the Americans to the table to talk and find deals.” Until then, he said, “all options remain on the table.”
