The EU Temporarily Suspends Tariff Retaliation Measures Against the US! Von der Leyen: Subsequent Implementation May Continue

On Thursday local time, European Commission President von der Leyen stated that the EU agreed to suspend the countermeasures against US tariffs, originally scheduled for April 15, for 90 days. A day earlier, the White House announced a temporary halt to imposing equivalent tariffs on the EU.

Von der Leyen claimed: "We have taken note of the statement by US President Trump. We want to give negotiations a chance. While the final adoption of EU countermeasures with strong support from member states is underway, we will put these measures on hold for 90 days."

However, she also warned that if subsequent negotiations are unsatisfactory, the EU will continue to take countermeasures. "Preparations for further countermeasures are ongoing, and as I have said before, all options are on the table."

The day before, EU member states voted to pass the first round of countermeasures against US tariffs, imposing tariffs of up to 25% on a range of US products. This round of countermeasures primarily targets US steel and aluminum tariffs.

It is reported that the EU's countermeasures involve goods worth approximately 21 billion euros, with a wide range of products subject to tariffs, including soybeans, poultry, rice, fruit, nuts, timber, textiles, and more.

Tariff measures on the first batch of goods will take effect on April 15, the second batch is expected to take effect on May 16, and the third batch, targeting soybeans and various nut products, will be implemented from December 1.

Notably, in addition to the Trump administration's previous imposition of 25% tariffs on steel, aluminum, and automobiles, the US last week announced a 20% equivalent tariff on almost all EU goods.

By Wednesday, Trump announced that his 10% basic tariff on almost all imported goods would remain in effect, but he had authorized a 90-day suspension of the higher equivalent tariffs imposed on countries that do not take retaliatory actions.

This brought relief to the battered global markets, with US stock indices surging after the news, and Asian and European markets continuing this sentiment of relief on Thursday.

Before Trump's about-face, the turmoil had wiped out trillions of dollars in market value from US stocks and caused an unsettling surge in US government bond yields, which seemed to have caught the US President's attention.

Von der Leyen welcomed this, stating that Trump's 90-day suspension of equivalent tariffs was "an important step towards stabilizing the global economy." "Tariffs only hurt businesses and consumers. That's why I have always advocated for a zero-tariff agreement between the EU and the US."

In response to Trump's actions, in addition to negotiating with the US and formulating countermeasures, the EU also stated that it is strengthening and diversifying trade relations with other countries and reducing friction within the single market.

EU-US relations have significantly deteriorated this year, with Trump repeatedly accusing the 27-nation bloc of being "very unfair" to the US due to imbalances in goods trade between the two sides.

However, in terms of goods, services, and investments, the trade between the two sides is generally roughly balanced, raising questions about whether the EU would target US services trade, including the technology sector, as a response.