In this photo illustration, a double exposure images shows U.S. President Donald Trump against the EU flag.
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The European Union will pause the adoption of its retaliatory tariffs on a swathe of U.S. goods for 90 days, European Commission President Ursula von der Leyen said, a day after the White House issued a reprieve on most of its own levies.
On Wednesday, EU members voted in favor of the package, which was designed in response to the U.S. 25% tariffs on steel and aluminum launched last month. The duties were due to be finalized in the coming days, with an initial tranche set to come into effect on April 15. The full list of targeted items has not yet been published, though a draft document seen by CNBC in March listed products spanning clothing, poultry, grains, machinery and more.
“We took note of the announcement by President Trump. We want to give negotiations a chance,” von der Leyen said on Thursday.
“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.”
As well as Trump’s 25% duties on steel, aluminum and autos, the EU was hit with a 20% U.S. tariff rate on almost all goods as part of the sweeping duties announced last week.
Trump on Wednesday jolted markets when he revealed the reduction of new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow for trade negotiations.
U.S. stock markets soared on the news, while Asia-Pacific and Europe joined the rally on Thursday. The euro was 1.2% higher against the U.S. dollar at midday London time on Thursday, trading at $1.1079.
In a statement earlier Thursday, von der Leyen said she welcomed the pause of Trump’s full “reciprocal tariff” plan, calling it an “important step towards stabilizing the global economy.”
“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.
As well as negotiating with the U.S. and forming countermeasures, the EU says it is also strengthening and diversifying its other trade relationships and reducing friction in its single market in response to Trump’s actions.
EU relations with the U.S. have soured significantly this year. Trump has repeatedly accused the 27-nation bloc of treating the U.S. “very unfairly” due to the imbalance in their trade in goods.
Across goods, services and investment, trade between the two economies is roughly equal, leading to questions over whether the EU could resort to targeting U.S. services including technology in its response.
