London
CNN
—
The European Union has announced a 90-day pause on countermeasures against the United States, a day after President Donald Trump unveiled a similar pause on his “reciprocal” tariffs.
“We want to give negotiations a chance,” European Commission President Ursula von der Leyen said Thursday.
This comes after the EU on Wednesday announced it would begin collecting higher duties on US imports, in retaliation for the steel and aluminum tariffs announced by Trump in March.
Just after the EU agreed on its response, the US president said he would pause his “reciprocal” tariffs on dozens of countries for 90 days, claiming he did so because more than 75 countries had contacted the White House to “negotiate” on trade policy.
However, von der Leyen, head of the EU’s executive arm, stressed that “if negotiations are not satisfactory, our countermeasures will kick in.”
The bloc of 27 countries had been hit by three sets of US tariffs: 25% tariffs on steel and aluminum exports, 25% levies on car exports and 20% so-called reciprocal tariffs on all other goods.
Despite the pause on the “reciprocal” tariffs, Trump said the industry-specific ones would remain in place — as well as his 10% flat-rate minimum tariff on all nations.
Although Trump’s abrupt tariff reversal came as a relief to many in Europe, investors and analysts have warned that the unpredictable, stop-start nature of his trade policy will likely dampen investment and could slow global economic growth.
“Clear, predictable conditions are essential for trade and supply chains to function,” von der Leyen said in a separate statement Thursday.
Despite the tariff pause, Stéphane Séjourné, who leads the European Commission’s industrial strategy, warned EU companies to remain “calm and cautious.”
“The only certainty is that instability will remain for the next four years,” he wrote on X.
While the EU “remains committed to constructive negotiations” with the US, the bloc is also focused on “diversifying its trade partnerships, engaging with countries that account for 87% of global trade,” von der Leyen said.
Olaf Gill, a trade spokesperson for the European Commission, said the bloc had “pressed the pause button to allow space for negotiations” with the US and to consult with member states to decide on the “most coherent strategy.”
Since returning to the White House in January, Trump has chastised the EU with a fury that was largely absent during his first term. The president has said the bloc was created to “screw” the US.
“They rip us off,” Trump said of the bloc when announcing his sweeping tariffs last week. “It’s so sad to see. It’s pathetic.”
Trump has also criticized the EU for its value-added tax — a 15% standard minimum tax on most goods and services sold in the bloc, whether home-grown or imported, which Trump has characterized as a tariff on US goods and an “unfair” trade practice.
Using a crude methodology that has been criticized by trade economists, Trump claimed the EU had in place a tariff of 39% on US products. The average tariff rate applied on goods by both sides is around 1%, according to the European Commission.
This article has been updated with additional information and context.