Brussels, Belgium – The European Union has decided to delay the implementation of its planned retaliatory tariffs on a variety of U.S. goods for a period of 90 days. This decision comes shortly after the White House announced a temporary halt on most of its own tariffs. The EU’s response was crafted in reaction to the U.S imposing 25% tariffs on steel and aluminum last month. The finalization of the tariffs was imminent, with an initial phase set to take effect on April 15. While the full list of goods to be targeted has not been disclosed, a preliminary document outlined items such as clothing, poultry, grains, and machinery.
European Commission President Ursula von der Leyen emphasized the EU’s willingness to prioritize negotiations following President Trump’s recent announcement. However, she made it clear that if negotiations do not yield satisfactory results, the EU will activate its countermeasures. Von der Leyen affirmed that preparations for additional countermeasures are ongoing, maintaining that all options remain on the table. The EU finds itself in a retaliatory position in response to Trump’s imposition of 25% tariffs on steel, aluminum, and automobiles, as well as a 20% tariff on nearly all goods.
Trump’s surprising revelation of reducing new tariff rates on imports from most U.S. trading partners to 10% for 90 days to facilitate trade negotiations caused an immediate market response. U.S. stock markets surged upon this announcement, and a ripple effect was felt in Asia-Pacific and Europe with markets rallying the following day. In London, the euro rose by 1.2% against the U.S. dollar on Thursday, reaching a trading rate of $1.1079.
Tensions have escalated between the EU and the U.S. this year, with Trump frequently accusing the bloc of unfair treatment due to trade imbalances in goods. While trade in goods, services, and investments between the two economies is relatively balanced, the EU is considering the possibility of targeting U.S. services, including technology, in its response. The developments in the ongoing trade dispute between the EU and the U.S. are being closely monitored as negotiations continue to unfold.