ADVERTISEMENTThe European Union is breathing a deep sigh of relief after Donald Trump, under intense pressure from the market, U-turned and agreed to introduce a 90-day pause on his sweeping tariffs, which have threatened to cause a worldwide recession.
“I welcome President Trump’s announcement to pause reciprocal tariffs. It’s an important step towards stabilising the global economy,” Ursula von der Leyen said in a statement released on Tuesday morning.
“Clear, predictable conditions are essential for trade and supply chains to function.”
Von der Leyen seized the moment to, once again, highlight her offer for a “zero-for-zero” tariff agreement for all industrial goods between the EU and the US.
Earlier this week, Trump publicly rejected the pitch, saying it was not enough to satisfy his claims. Instead, he said, the EU should ramp up purchases of American energy to rapidly balance trade in goods. (In 2023, the EU recorded a surplus of goods with the US worth €156.6 billion but a deficit of services worth €108.6 billion.)
“The European Union remains committed to constructive negotiations with the United States, with the goal of achieving frictionless and mutually beneficial trade,” said the president of the European Commission.
Donald Tusk, the Polish prime minister, urged both sides of the Atlantic to “make the best of the next 90 days” and find a compromise.
“Maintaining close transatlantic relations is a common responsibility of Europeans and Americans, regardless of temporary turbulence,” he wrote on social media.
The bloc had been initially hit by a 20% rate under Trump’s self-styled “reciprocal tariffs,” which the Commission had dismissed as “neither credible nor justified.”
Following Trump’s reversal, EU imports to America will be slapped with the baseline 10% rate. Steel, aluminum and cars will remain subject to a separate 25% rate.
In her statement, von der Leyen made no mention of further countermeasures, despite the bloc still being under the 10% rate. On Wednesday, EU countries approved the first raft of counter-tariffs against Trump’s steep duties on steel and aluminum.
A spokesperson suggested the retaliatory plans that the Commission had been meticulously crafting would be put on halt for the time being.
“The European Commission will now take the necessary time to assess this latest development, in close consultation with our member States and industry, before deciding on next steps,” a spokesperson said.
The 10% also applies to the majority of countries. China, by contrast, has been slapped with a 125% tariff, a gigantic number that could send shockwaves across global markets.
The Commission has already set up a task force to monitor the possible redirection of Chinese goods, many of which are heavily subsidised, from America into Europe.
ADVERTISEMENTAt the same time, von der Leyen said, the EU will continue “diversifying” its commercial relations, “engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas.”
In recent months, the Commission has concluded free-trade deals with Switzerland, Mexico and Mercosur, and is eyeing a new agreement with India.
“My team and I will continue to work day and night to protect European consumers, workers and businesses,” von der Leyen said.
“Together, Europeans will emerge stronger from this crisis.”
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