European Union officials have just approved 10-25% retaliation on about $23 billion in US imports when President Trump suddenly changed his tuck on Wednesday, and announced that he will suspend some of the tariffs he has placed in Europe and much of the world.
Trump's announcement showed what European leaders wanted: willingness to negotiate. Financial markets surged in the news, greeted them as evidence that an all-out trade war could be avoided.
But European leaders on Thursday morning were taking the time to assess exactly what the announcement meant and how they should respond.
The Trump administration has suspended what is known as “mutual” tariffs — board taxes applied to different countries at different amounts — announced on April 2. At the time, he said the European Union would face 20% tariffs. For him on Wednesday in his front, the BLOC could face full 10% tariffs for the next 90 days during the suspension.
However, the 25% tariffs Trump placed on both cars and steel and aluminum still appeared to be in place. And the European retaliation approved on Wednesday was dealing with tariffs in those metal sectors, not those currently delayed by Trump. European Union officials have yet to announce whether retaliation will go further.
Olof Gill, a spokesman for the European Commission, BLOC's executive arm, told reporters in a statement Thursday.
Still, White House officials expressed optimism that Europe's retaliation, which was intended to be phased out from April 15th, is delayed.
“I think what happens is that they'll be pushed out for 90 days, so they have time to negotiate with the president without anything hanging over their heads,” U.S. Secretary of Commerce Howard Lutnick told White House reporters Wednesday.
Polish Prime Minister Donald Tass wrote on social media, “Let's make the most of the next 90 days.”
European Commission President Ursula von der Leyen in a statement Thursday said he welcomed Trump's delays and wanted to negotiate.
She called the announcement “an important step towards stabilizing the global economy.”
Von der Leyen has repeatedly suggested that both Europe and the US should drop tariffs to zero on industrial products, including cars.
“Taxes are taxes that only hurt businesses and consumers,” she said. “That's why I have consistently insisted on a zero-duty contract between the European Union and the US.”
However, she also emphasized that Europe will continue its strategy of attacking new trade alliances, deepening internal trade between nations and working to improve its own competitiveness.
“This crisis made one thing clear,” she wrote. “In an age of uncertainty, the single market is a fixture of stability and resilience.”
