Europe Pauses Tariff Retaliation for 90 Days, Seeks Trade Solution/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The European Union has paused its planned $23 billion in retaliatory tariffs for 90 days in response to President Trump’s temporary halt on new trade duties. Both sides now have space to negotiate and avoid a deeper trade conflict. Talks may still falter if mutual agreements aren’t reached.
EU Trade Pause After Trump Tariff Freeze: Quick Looks
- EU suspends planned $23 billion in retaliatory tariffs for 90 days.
- Move comes in response to Trump’s pause on sweeping new trade tariffs.
- EU Commission President Ursula von der Leyen warns countermeasures will follow if talks fail.
- Trump imposed a baseline 10% tariff on EU goods, with 20% tariffs paused.
- EU offered a “zero for zero” proposal to eliminate industrial tariffs, including auto duties.
- Trump says EU offer falls short and seeks LNG purchases instead.
- Planned EU tariffs were to begin in stages on April 15, May 15, and December 1.
- EU continues preparing future measures, possibly targeting tech and services.
- Von der Leyen emphasizes EU’s commitment to global free trade and internal market reforms.
Europe Pauses Tariff Retaliation for 90 Days, Seeks Trade Solution
Deep Look
In a major diplomatic overture, the European Union announced Thursday it will pause its planned retaliatory tariffs on U.S. goods for 90 days, mirroring a similar pause declared by President Donald Trump. The aim is to carve out time for negotiations to avert a full-blown transatlantic trade war, which would threaten the global economy.
Speaking from Brussels, European Commission President Ursula von der Leyen confirmed the move, stating that the EU had “taken note” of Trump’s latest announcement. “We want to give negotiations a chance,” she said. But she also issued a stern caveat: “If negotiations are not satisfactory, our countermeasures will kick in.”
The tariffs—amounting to €20.9 billion ($23 billion)—were approved by EU member states earlier this month in direct response to Trump’s aggressive 25% tariffs on imported steel and aluminum, which took effect in March. The EU’s retaliatory package was designed to roll out in phases across the year, starting April 15, followed by additional enforcement on May 15 and December 1.
Trump has imposed a 10% baseline tariff on goods from the EU and other trade partners, with a 20% surcharge suspended for now. His administration has framed the tariffs as part of a broader push to address structural imbalances in global trade, particularly with allies like the EU who he claims benefit disproportionately from existing rules.
Despite authorizing a matching retaliatory package, the EU’s 27-member bloc is clearly hoping to avoid escalation. Officials have been engaged in intensive shuttle diplomacy, with top trade envoys traveling repeatedly between Brussels and Washington over the past several weeks in a bid to strike a compromise.
Among the key European proposals is the “zero for zero” initiative, which would eliminate tariffs on industrial goods—including automotive products—on both sides of the Atlantic. While seen by many as a constructive starting point, Trump has dismissed the proposal as inadequate. Instead, he has floated demands for the EU to increase purchases of U.S. liquefied natural gas (LNG) as part of any deal.
The goods affected by the potential EU tariffs represent a small portion of the $1.8 trillion in annual U.S.-EU trade. According to the European Commission, daily trade between the two economies totals around €4.4 billion, making it the largest bilateral trading relationship in the world.
Strategically, the EU has designed its tariff lists to apply pressure in targeted, politically sensitive areas while minimizing collateral economic damage. Officials in Brussels have signaled that they are also developing a second wave of countermeasures, in case Trump moves forward with his suspended blanket 20% tariff. This next phase could extend beyond goods into services and tech sectors, hitting key U.S. companies operating in Europe.
Still, von der Leyen struck a hopeful tone, emphasizing that the EU’s goal is not confrontation but cooperation. She reaffirmed the bloc’s commitment to open global trade and pledged to strengthen internal European economic integration.
“The EU will continue engaging with countries that account for 87% of global trade,” she said. “We will emerge stronger from this crisis by lifting barriers within our own single market and expanding our global partnerships.”
Though tensions remain high, the 90-day pause opens a diplomatic window. Whether both sides can reach a meaningful agreement that resolves their core trade disagreements—or simply delay the inevitable escalation—remains to be seen.
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