The European Union will suspend its planned tariffs on $23 billion worth of US goods for 90 days, matching US President Donald Trump’s pause on new trade measures and allowing time for negotiations.
European Commission President Ursula von der Leyen said Thursday the bloc was willing to give diplomacy a chance.
“We want to give negotiations a chance,” she said in a statement. But she warned: “If negotiations are not satisfactory, our countermeasures will kick in.”
The EU’s executive arm, which manages trade policy for the bloc’s 27 member states, said it had “taken note” of Trump’s announcement.
The planned tariffs would have affected a wide range of politically sensitive US exports, including soybeans, meat, motorcycles, tobacco and ice cream.
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Three-month pause
Trump announced the 90-day pause on Wednesday, days after markets were rocked by new US tariffs of 10 percent and higher on global trading partners.
He had also imposed a 20 percent levy specifically on goods from the EU. Countries covered by the pause will still be subject to a baseline 10 percent import tax.
The EU’s move to hold off on retaliation offers a temporary reprieve in growing transatlantic tensions and could reopen the door to talks between Washington and Brussels.
Von der Leyen called the US pause “an important step towards stabilising the global economy” and repeated the EU’s support for free and open trade.
She also revived her offer of a “zero-for-zero” agreement to remove all industrial tariffs between the EU and US. “Clear, predictable conditions are essential for trade and supply chains to function,” she said.
German Chancellor-designate Friedrich Merz praised the decision to delay tariffs, saying it showed how a united EU could hold its ground in trade talks. He said the bloc should push for a fully tariff-free deal with the US.
Markets in Europe rallied on the news. The pan-European STOXX 600 rose 5.9 percent and Germany’s DAX gained 6.7 percent.
The United Kingdom, no longer part of the EU, remains subject to existing US tariffs. Those include a 10 percent baseline import tax and up to 25 percent on steel, aluminium and cars. The UK’s FTSE 100 fell 2.92 percent on Wednesday, hitting its lowest point in over a year.
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China left out
While Europe and other countries were granted a 90-day reprieve, China was left out. The latest wave of US tariffs raised duties on Chinese imports to 125 percent.
Beijing retaliated by increasing tariffs on US goods from 34 percent to 84 percent, effective from Thursday.
It also filed a formal complaint with the World Trade Organisation (WTO) and accused Washington of "unilateral bullying".
A spokesperson for the Chinese Commerce Ministry said the tariffs are a "grave mistake" and show a disregard for international trade rules.
Although multiple countries have filed WTO complaints over US tariffs, the organisation’s ability to intervene remains limited. Its dispute resolution system has been weakened, with the US continuing to block the appointment of new judges.
With 90 days on the clock, the international community now faces a narrow window to reduce trade tensions or risk a deeper global rift.
