European Union hits pause on planned retaliatory tariffs for U.S.

Thomson Reuters

· Posted: Apr 10, 2025 8:33 AM EDT | Last Updated: 7 minutes ago

The European Union volition intermission its archetypal countermeasures against U.S. tariffs aft President Donald Trump temporarily lowered the hefty duties helium had conscionable imposed connected dozens of countries, European Commission main Ursula von der Leyen said connected Thursday.

The bloc was owed to motorboat counter-tariffs connected astir 21 cardinal euros ($32.7 cardinal Cdn) of U.S. imports from adjacent Tuesday successful effect to Trump's 25 per cent tariffs connected alloy and aluminum. It is inactive assessing however to respond to U.S. car tariffs and the broader 10 per cent levies inactive successful place.

"We privation to springiness negotiations a chance," von der Leyen said connected X. "While finalizing the adoption of the EU countermeasures that saw beardown enactment from our subordinate states, we volition enactment them connected clasp for 90 days."

In Europe, euro portion authorities enslaved yields jumped, spreads tightened and markets scaled backmost their bets connected European Central Bank complaint cuts aft Trump's latest announcement. European shares surged.

Trump's determination was an important measurement toward stabilizing the planetary economy, von der Leyen said, earlier announcing a intermission successful the EU's ain counter-tariffs.

But she warned they could beryllium brought backmost in.

"If negotiations are not satisfactory, our countermeasures volition footwear in. Preparatory enactment connected further countermeasures continues," she said, earlier adding: "As I person said before, each options stay connected the table."

The EU had been owed to enforce other tariffs connected U.S. imports including maize, wheat, motorcycles, poultry, effect and clothing. Those are present suspended.

Despite the reprieve, immoderate cardinal bankers and analysts remained cautious.

European Central Bank policymaker Francois Villeroy de Galhau, speaking of the intermission successful the tariff hike, told France Inter Radio it was "less atrocious news" than before, but uncertainty remained and that was a menace to spot and growth.

LISTEN l Brian Mulroney Institute of Government's Asa McKercher connected historical Smoot-Hawley tariffs:

China not spared

Trump's abrupt determination connected Wednesday to intermission astir of his hefty caller duties brought alleviation to battered planetary markets and anxious planetary leaders, adjacent arsenic helium ratcheted up a commercialized warfare with China.

WATCH l Where Canada stands arsenic a intermission is planned for galore U.S. tariffs: 

Trump's reversal connected the tariffs imposed connected different countries is besides not absolute. A 10 per cent broad work connected astir each U.S. imports volition stay successful effect, the White House said. The announcement besides does not look to impact duties connected autos, alloy and aluminum that are already successful place. That 10 per cent broad work does not see Canada; instead, we proceed to look 25 per cent tariffs connected non-CUSMA goods, connected alloy and aluminum and immoderate vehicles. 

Trump's turnabout, which came little than 24 hours aft steep caller tariffs kicked in, saw U.S. banal indexes sprout higher arsenic a result, and the alleviation continued into Asian and European trading connected Thursday.

Before Trump's U-turn, the upheaval had erased trillions of dollars from banal markets and led to an unsettling surge successful U.S. authorities enslaved yields that appeared to drawback the U.S. president's attention.

Meanwhile, China rejected what it called threats and blackmail from Washington.

WATCH l The reasons down China's defiant response: 

Trump kept the unit connected China, the world's No. 2 system and second-biggest supplier of U.S. imports with an summation of tariffs connected Chinese imports to 125 per cent from the 104 per cent level that kicked successful connected Wednesday.

He besides signed an enforcement bid aimed astatine reducing China's grip connected the planetary shipping manufacture and astatine reviving U.S. shipbuilding.

China volition "follow done to the end" if the U.S. insists connected its ain way, Commerce Ministry spokesperson He Yongqian told a regular property briefing. China's doorway was unfastened to dialogue, but this indispensable beryllium based connected communal respect, the ministry said.

Beijing whitethorn again respond successful benignant aft imposing 84 per cent tariffs connected U.S. imports connected Wednesday to lucifer Trump's earlier tariff salvo.

Trump claims the tariffs purpose to hole U.S. commercialized imbalances, though a ample bulk of economists don't presumption a commercialized shortage unsocial arsenic a motion of a country's economical health. 

U.S. officials person said they volition prioritize talks with different countries arsenic Vietnam, Japan, South Korea and others enactment up to effort and onslaught a bargain.

China's yuan deed its lowest against the dollar connected Thursday since the planetary fiscal crisis.