Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
European Commission President Ursula von der Leyen has welcomed President Donald Trump’s decision to temporarily halt most US tariffs, but she did not say whether the European Union intends to press ahead with its own retaliatory measures.
“I have authorised a 90 day PAUSE,” Trump said, after recognising the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs.
Countries subject to the pause will now be tariffed at 10 per cent. The EU's rate was 20 per cent, but it was not entirely clear how the 27-nation bloc would be impacted.
China was not included. Trump further jacked up the tax rate on Chinese imports to 125 per cent, reports AP.
Von der Leyen on Thursday described the halt on reciprocal tariffs as “an important step towards stabilising the global economy. Clear, predictable conditions are essential for trade and supply chains to function.”
Before Trump’s announcement on Wednesday, EU member countries voted to approve retaliatory tariffs on $23 billion in goods in response to his 25 per cent tariffs on imported steel and aluminum. The EU, the largest trading partner of the US, described them as “unjustified and damaging.”
The tariffs are set to go into effect in stages, some on April 15 and others on May 15 and Dec. 1. The EU commission didn’t immediately provide a list of the goods. The bloc’s top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict.
But Von der Leyen gave no sign that the EU’s timetable has changed.
Members of the EU – the world’s largest trading bloc – repeated their preference for a negotiated deal to settle trade issues, and von der Leyen underscored that commitment, “with the goal of achieving frictionless and mutually beneficial trade.”
Still, the head of the EU’s executive branch – which negotiates trade deals and disputes on behalf of the member countries – said that Europe intends to diversify its trade partnerships.
She said that the EU will continue “engaging with countries that account for 87 per cent of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” and to lift barriers to commerce inside its own single market.
“Together, Europeans will emerge stronger from this crisis,” von der Leyen said.