On 9 April, U.S. President Donald Trump called for a 90-day pause on his planned “reciprocal” tariffs. While tariffs on steel, aluminium, and automobiles remain in place, the EU will temporarily face only a 10% tariff.
In response to President Trump, on 10 April, European Commission President von der Leyen announced a 90-day pause in the planned steel & aluminium retaliatory tariffs, – a measure approved by EU member States just the day before. This pause will remain in effect while negotiations take place between the EU and the U.S. European Commission President von der Leyen stated: “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.”
While President Trump’s decision to pause tariff implementation signals an openness to dialogue, the situation remains highly volatile. It is yet another U-turn by Donald Trump, the uncertainty created leaving the global economy in a very difficult situation. Additionally, the escalating trade tensions between the U.S. and China are likely to have spillover effects on the EU, including excess supply being redirected to third markets such as the EU and further disruptions to global supply chains.
Earlier in the week, EU Trade Commissioner, Maroš Šefčovič, gave a speech during the Foreign Affairs Council (Trade) press conference hosted by the Polish Presidency on Monday, 7 April. He noted that U.S. tariffs have the potential to hit €380 billion worth of EU exports with tariffs of 20% or 25%.
He said “Both sides recognise that the EU-U.S. trade relationship could benefit from a fresh look and a boost in strategic areas… If we team up, we could build a truly transatlantic marketplace that benefits both sides.”
Mr. Šefčovič expressed that while negotiations are possible, the EU will not wait indefinitely for U.S. engagement. The EU will take the following approach: Defending its interests through countermeasures, diversifying trade through new agreements, and deterring harmful trade diversions.
European Commission President Ursula von der Leyen and EU Trade Commissioner Šefčovič also affirmed they have offered the U.S. “zero-for-zero tariffs for cars and industrial goods.” Additionally, the EU will set up an Import Surveillance Task Force to monitor potential diversion of goods as a result of U.S. tariffs as it tries to pursue negotiations with the Trump Administration.
