EU suspends counter-tariffs on US goods until July 14 after Donald Trump's 90-day pause

European Union (EU) chief Ursula von der Leyen announced on Thursday, April 14, that the bloc would hold off on planned tariffs on US goods to give negotiations a chance after US President Donald Trump's U-turn on massive duties.

The 27-nation bloc had approved its first measures targeting US products in retaliation for duties on steel and aluminium exports. It had yet to announce a response to Trump's universal tariffs -- which he has now paused for 90 days.

"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," the European Commission president said in a statement. “If negotiations are not satisfactory, our countermeasures will kick in,” said the EU President.

EU counter-tariffs on US

The EU measures approved Wednesday target more than 20 billion euros worth of US products, including soybeans, motorcycles and beauty products. The bloc is still working on responding to Trump's universal tariffs -which hit the EU at a rate of 20 per cent -and the ones imposed on the auto sector, and Leyen stressed that "preparatory work on countermeasures continues".

"All options remain on the table," she said. Brussels has made it clear however it would prefer to avoid retaliation. In an earlier statement, the commission chief welcomed Trump's decision to pause his planned tariffs as an "important step towards stabilising the global economy".

“Clear, predictable conditions are essential for functioning trade and supply chains. Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff between the EU and the US. EU is committed to constructive negotiations with the US, with the goal of achieving frictionless and mutually beneficial trade,” she said on April 10.

European markets

European shares jumped on Thursday last week, with most indexes recording their biggest one-day gains since 2022. Trump's pause on reciprocal tariffs for trading partners prompted a huge relief rally following a brutal selloff.

Punishing tariffs on dozens of countries was suspended less than 24 hours after they kicked in. In response, the European Union on Thursday paused its own countermeasures against around 21 billion euros worth of US imports.

The pan-European STOXX 600 leapt 3.7 per cent, and major regional bourses jumped between three per cent and 4.7 per cent. The benchmark index, as well as those in Germany, Spain and the UK, recorded their best day since March 2022. France's CAC 40 jumped 3.8 per cent, its best day since October 2022.