Camilla Jessen
A looming €21 billion tariff war between the EU and US has been paused.
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The European Union has decided to suspend retaliatory tariffs on nearly €21 billion worth of American goods, signaling a cautious willingness to negotiate with the Trump administration as tensions around transatlantic trade flare once again.
The tariffs—meant to counter the US’s steel and aluminum duties—were due to begin rolling out next week, with an initial €3.9 billion tranche targeting key US exports such as soybeans, copper, and motorcycles.
But following a last-minute shift in tone from both sides, EU Commission President Ursula von der Leyen announced the measures would be frozen for 90 days.
We want to give negotiations a chance,” von der Leyen said in a brief statement Wednesday evening. “While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.
Trump’s Move Triggers EU Reprieve
According to Euronews, the EU’s decision to de-escalate followed a surprise announcement from former President Donald Trump, who confirmed that his own round of so-called “reciprocal tariffs” would be paused for the same 90-day period.
These tariffs had included a 20% rate on a wide array of EU imports, prompting a firm response from Brussels, which had dismissed them as “neither credible nor justified.”
In the interim, EU exports to the US will revert to a lower baseline tariff rate of 10%, although key sectors such as steel, aluminum, and automobiles will still be subject to a separate 25% duty.
Caution Over Cooperation
While von der Leyen’s announcement suggests a brief diplomatic thaw, the underlying message remains firm: the EU is preparing for all scenarios.
Internal preparations for “further countermeasures” will continue, the Commission confirmed, should talks break down.
“As I have said before, all options remain on the table,” von der Leyen warned.
Earlier in the day, von der Leyen had renewed her proposal for a “zero-for-zero” industrial tariff deal—eliminating tariffs on all industrial goods—a framework Trump previously rejected during earlier negotiations.
The EU and US have long had a turbulent economic relationship, with periodic disputes over aircraft subsidies, digital services taxes, and agricultural standards. But the latest conflict—triggered by protectionist metal tariffs from Washington—has threatened to unravel hard-won cooperation in the post-pandemic recovery period.