EU Suspends Counter-Tariffs for 90 Days After US Reversal on Duties

AFP | Brussels, Belgium
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The European Union has decided to suspend its planned package of counter-tariffs on U.S. goods for a period of 90 days, following a reversal by President Donald Trump on his proposed tariffs. The move comes as part of ongoing negotiations between the two economic powers, with the EU aiming to give talks a chance to progress before implementing retaliatory measures.

European Commission President Ursula von der Leyen announced the suspension on Thursday, explaining that the decision was made to provide additional time for negotiations. "While finalizing the adoption of the EU countermeasures, which had received strong support from our Member States, we will put them on hold for 90 days," she said. "If negotiations are not satisfactory, our countermeasures will kick in," she added, signaling that the EU remains prepared to act if an agreement is not reached within the set time frame.

This move follows an unexpected change in direction from the U.S. government. President Trump had initially announced a major tariff increase on European goods, which would have significantly affected the trade relationship between the two entities. However, after several discussions, Trump chose to delay the tariff imposition for 90 days, allowing room for further dialogue.

The suspension of the EU’s counter-tariffs comes as a sign of hope for continued cooperation between the U.S. and Europe. However, it is also a reminder that trade tensions remain a pressing issue, with both sides still at odds on certain economic policies. European officials have emphasized the importance of reaching a fair and equitable resolution to the ongoing tariff disputes, and the EU will closely monitor the outcomes of the negotiations.

Trade between the U.S. and the EU remains crucial, with the two accounting for a significant portion of global commerce. As of now, the suspension provides an opportunity for both sides to avoid further escalation in the trade war, but with the 90-day deadline looming, all eyes will be on how the talks progress.

The outcome of these negotiations could have a major impact on global markets, as both the EU and the U.S. continue to play pivotal roles in shaping the future of international trade.