Posted on 11 Apr 2025
The EU has welcomed the US’ 90-day pause on higher “reciprocal” tariffs, suspending its own countermeasures against the US to “give negotiations a chance.”
European Commission president Ursula von der Leyen said Thursday that the countermeasures, approved by EU member states on Wednesday, will be put on hold for 90 days.
“If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table,” she says in a statement.
The first EU retaliatory measures would come into effect on 15 April, though others would be introduced in mid-May and some as far as December. The package targets €21 billion ($23.4 billion) of US goods in response to a 25% tariff on steel and aluminium.
EU cars and certain auto parts are also subject to a 25% tariff, which may be the focus of a new round of EU countermeasures if needed. The US’ 20% “reciprocal” tariff on EU goods has now been paused, and the bloc, as well as other countries in the world, will only face a 10% baseline import duty on goods entering the US.
Brussels seems to have dodged further escalation with Washington, as opposed to China, which now faces a 125% tariff in the US market. Von der Leyen has been calling for a “zero-for-zero” tariff agreement with the US, a move that would provide relief to the automotive and clean technologies industries, Kallanish notes.
Meanwhile, the EU is discussing its relations with China, urging Beijing to rebalance bilateral trade and ensure better access for European businesses, products and services to the Chinese market. Both parties vowed to support a “free and fair” multilateral trading system.
Source:Kallanish
