According to media reports, following U.S. President Donald Trump's announcement of a 90-day suspension of his reciprocal tariff policy, the European Union has also announced it will postpone its retaliatory measures against the U.S. for 90 days.
European Commission President Ursula von der Leyen stated, "We want to give negotiations a chance." However, she emphasized, "If negotiations between the EU and the U.S. fail to produce a satisfactory outcome, we will immediately implement retaliatory measures against the U.S."
Previously, on April 9, the EU announced it would impose a 25% tariff on imported goods from the United States in response to Trump's March decision to raise tariffs on imported steel and aluminum. After EU member states reached a consensus on the countermeasures, President Trump declared a 90-day suspension on the collection of "reciprocal tariffs" from dozens of countries, claiming the decision was due to more than 75 countries contacting the White House to initiate trade negotiations.
Currently, the 27-member EU bloc has already been hit by three rounds of U.S. tariff measures: a 25% tariff on imported steel and aluminum, a 25% tariff on imported cars, and a 20% so-called reciprocal tariff on all other imported goods. Although the U.S. has paused the implementation of the reciprocal tariffs, Trump stated that tariffs on specific industries would remain in place. In addition, a 10% base tariff on all countries would continue to be enforced during the 90-day suspension period.
While Trump's sudden reversal on tariff policy offers temporary relief for Europe, investors and analysts warn that the unpredictable and erratic nature of Trump's trade policy could stifle investment and hamper global economic growth. Stéphane Séjourné, Head of Industrial Strategy at the European Commission, has urged EU businesses to remain "calm and cautious." He wrote on social media platform X, "The only certainty is that instability will persist over the next four years."
On April 10, Ursula von der Leyen stated in a separate statement: "A clear and predictable environment is essential for the smooth operation of trade and supply chains." She noted that while the EU "remains committed to constructive negotiations with the United States," it is also working to "diversify trade partnerships and deepen cooperation with other countries beyond the U.S., which account for 87% of global trade."
EU Commission spokesperson for trade Olaf Gill said the EU has "hit the pause button" to allow space for negotiations with the U.S., and is coordinating with member states to develop "the most coherent strategy possible."
Since returning to the White House in January, Trump has criticized the EU with even greater intensity than during his first term, claiming the EU was created to "rip off" the United States. When announcing the comprehensive imposition of reciprocal tariffs last week, Trump said, "The EU cheats us-it's painful and deeply sad."
Trump also criticized the EU's value-added tax (VAT), which imposes a minimum standard rate of 15% on most goods and services sold within the EU, whether domestically produced or imported. He labeled this VAT as a tariff on U.S. goods, calling it an "unfair" trade practice.
Using a calculation method widely criticized by trade economists as crude, Trump claimed the EU imposes a 39% tariff on U.S. products. However, according to the European Commission, the actual average tariff rate in EU-U.S. bilateral trade is only around 1%.
