BRUSSELS (AP) — The European Union said on Thursday that it will suspend its retaliatory trade measures against the United States for 90 days to coincide with the pause ordered by US President Donald Trump on his new widespread tariffs and create space for a negotiated solution.
The President of the European Commission, Ursula von der Leyen, said that the body, which handles trade for the 27 member countries, “took note of President Trump’s announcement”.
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What were the tariffs announced by the EU?
The new tariffs on 20.9 billion euros (23 billion dollars) worth of American goods will be put on hold for 90 days because “we want to give negotiations a chance”, stated in a release.
However, he warned: “If the negotiations are not satisfactory, our countermeasures will come into effect.”
Trump imposed a 20% tariff on EU goods as part of his 10% and higher tariff onslaught against global trading partners, but on Wednesday he paused them for 90 days to give countries the opportunity to negotiate solutions to US trade concerns.
The countries subject to the pause will face Trump’s base tariff of 10%.
Before Trump’s announcement, EU member countries voted to approve a set of retaliatory tariffs on $23 billion worth of goods in response to his 25% tariffs on imported steel and aluminum that came into effect in March. The EU, the largest trading partner of the United States, described them as “unjustified and harmful.”
The EU tariffs were designed to enter into force in phases, some on April 15, and others on May 15 and December 1. The European Commission did not immediately provide a list of the products.
Members of the EU, the largest trading bloc in the world, have said they prefer a negotiated agreement to resolve a trade war that is damaging the economies on both sides.
The bloc’s top trade official has been traveling between Brussels and Washington for weeks trying to avoid a conflict. The EU has offered Trump a “zero-for-zero” deal in which both parties would eliminate tariffs on industrial goods, including cars. Trump has said that this is not enough to address the concerns of the United States and has raised the possibility of Europe buying large additional amounts of liquefied natural gas from the country.
The affected goods are a small fraction of the 1.6 trillion euros (1.8 trillion dollars) in annual trade between the United States and the European Union. About 4.4 billion euros in goods and services cross the Atlantic each day in what the European Commission calls “the most important trade relationship in the world.”
The EU has targeted smaller lists of goods in the hope of exerting political pressure and avoiding economic damage from a broader escalation of reciprocal tariffs.
The bloc is also working on an additional set of countermeasures in response to Trump’s general 20% tariff on all European goods, currently suspended. This could include measures targeting US technology companies and the services sector, as well as goods trade.