EU holds off on US tariffs as Trump pauses trade escalation

The European Union (EU) decided to delay its retaliatory trade measures against the US for 90 days, following US President Donald Trump’s abrupt announcement of a similar pause on his latest wave of tariffs.

Read more: Trump announces 90-day pause on reciprocal tariffs for all but China

European Commission President Ursula von der Leyen announced the decision Thursday, stating, “We want to give negotiations a chance,” in a post on X. Her remarks came just one day after the EU finalized its first counter-tariffs in response to steep US duties on steel and aluminum imports that Trump introduced earlier this year.

We took note of the announcement by President Trump.

We want to give negotiations a chance.

While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.

If negotiations are not satisfactory, our…

— Ursula von der Leyen (@vonderleyen) April 10, 2025

However, before those EU measures could take effect, Trump unexpectedly revealed a 90-day halt to what he has called “reciprocal” tariffs—broad levies affecting dozens of countries. His pause excluded China and maintained separate tariffs targeting specific industries, including a 25 percent tax on steel and aluminum and another 25 percent on automobiles. A baseline 10 percent tariff on all countries remains in force.

Von der Leyen welcomed the pause but warned that Europe stands ready to act if talks don’t produce results. “If negotiations are not satisfactory, our countermeasures will kick in,” she said.

Despite the temporary relief, many European investors and trade observers remain wary of Trump’s sudden shifts in policy. The lack of consistency, they say, undermines market confidence and could drag on global economic performance.

“Clear, predictable conditions are essential for trade and supply chains to function,” von der Leyen emphasized in a separate statement Thursday.

While the EU expressed willingness to continue talks with Washington, von der Leyen also underscored the bloc’s broader strategy to reduce its dependence on any single trade partner. “The EU remains committed to constructive negotiations,” she said, “but is also focused on diversifying its trade partnerships, engaging with countries that account for 87 percent of global trade.”

The next few months are expected to test whether the two sides can find common ground—or whether tensions will flare again once the 90-day window closes.