In the illustration in this photo, the double exposure image shows President Donald Trump’s president against the EU flag.
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European Commission President Ursula von der Leyen said the European Union will suspend the adoption of retaliatory tariffs on US goods for 90 days.
On Wednesday, EU members voted in favour of a package designed to meet the 25% tariff on steel and aluminum that was released last month. The duties are expected to be finalized in the coming days, with the first tranche expected to come into effect on April 15th. The full list of target items has not yet been published, but a draft document seen by CNBC in March lists products that span clothing, poultry, grain, machinery and more.
“I’ve been warned of the announcement by President Trump, and I want to give him a chance in the negotiations,” von der Leyen said Thursday.
“If negotiations are not satisfactory, our measures will begin. Preparation work on further measures will continue. As I said before, all options will remain on the table.”
In addition to Trump’s 25% duties on steel, aluminum and automobiles, the EU was hit by a 20% US tariff rate on almost all goods as part of a drastic duty announced last week.
When Trump shook the market on Wednesday, he cut the new tariff rate cut to 10% for 90 days on imports from most US trading partners for 90 days to allow trade negotiations.
The US stock market has skyrocketed the news, with the Asia-Pacific region and Europe taking part in the rally on Thursday. The euro traded at $1.1079, up 1.2% against the US dollar in London time on Thursday at noon.
In a statement earlier Thursday, von der Leyen welcomed the suspension of Trump’s full “mutual tariff” plan, calling it “an important step towards stabilizing the global economy.”
“Taxes are taxes that only hurt businesses and consumers. So I was consistently advocating zero tariff contracts between the European Union and the US,” she said.
The EU not only shapes negotiations and measures with the US, but also strengthens and diversifies other trade ties and says it is reducing friction in the single market in response to Trump’s actions.
EU relations with the US have deteriorated significantly this year. Trump has repeatedly accused 27 blocs of treating the United States “very unfair” because of the imbalance in commodity trading.
In all products, services and investments, trade between the two economies is roughly equal, leading to questions about whether the EU can resort to targeting US services, including technology in its response.
