EU suspends counter-tariffs for 90 days after US U-turn

The European Union's executive commission said Thursday it will put its retaliation measures against new U.S. tariffs on hold for 90 days to match President Donald Trump's pause on his sweeping new tariffs and leave room for a negotiated solution.

European Commission President Ursula von der Leyen said that the commission, which handles trade for the 27 member countries, "took note of the announcement by President Trump."

New tariffs on 20.9 billion euros ($23 billion) of US goods will be put on hold for 90 days because "we want to give negotiations a chance," she said in a statement.

But she warned: "If negotiations are not satisfactory, our countermeasures will kick in."

Trump imposed a 20% levy on goods from the EU as part of his onslaught of tariffs against global trading partners but has said he will pause them for 90 days to give countries a chance to negotiate solutions to U.S. trade concerns.

THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.

BRUSSELS (AP) — European Commission President Ursula von der Leyen on Thursday welcomed President Donald Trump's decision to temporarily halt most U.S. tariffs, but she did not say whether the European Union intends to press ahead with its own retaliatory measures.

"I have authorized a 90 day PAUSE," Trump said, after recognizing 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%. The EU's rate was 20%, 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%.

Von der Leyen described the halt on reciprocal tariffs as "an important step towards stabilizing 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% tariffs on imported steel and aluminum. The EU, the largest trading partner of the U.S., 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. Spokesman Olof Gill noted that the commission "will now take the necessary time to assess this latest development, in close consultation with our member states and industry, before deciding on next steps."

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% 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.