\u201cWe want to give negotiations a chance,\u201d says European Commission chief Ursula von der Leyen
\n brussels
\nThe European Union will pause its first countermeasures against US tariffs after President Donald Trump temporarily lowered the hefty duties he had just imposed on dozens of countries, European Commission chief Ursula von der Leyen said on Thursday.
\nThe bloc was due to launch counter-tariffs on about 21 billion euros ($23.25 billion) of US imports from next Tuesday in response to Trump\u2019s 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies still in place.
\n\u201cWe want to give negotiations a chance,\u201d von der Leyen said on X. \u201cWhile finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.\u201d
\nTrump\u2019s sudden decision on Wednesday to pause most of his hefty new duties brought relief to battered global markets and anxious global leaders, even as he ratcheted up a trade war with China.
\nHis turnabout, which came less than 24 hours after steep new tariffs kicked in, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.
\nUS stock indexes shot higher on the news, and the relief continued into Asian and European trading on Thursday.
\nBefore Trump\u2019s U-turn, the upheaval had erased trillions of dollars from stock markets and led to an unsettling surge in US government bond yields that appeared to catch the US president\u2019s attention.
\nTrump kept the pressure on China, the world\u2019s No. 2 economy and second-biggest provider of US imports with an increase of tariffs on Chinese imports to 125% from the 104% level that kicked in on Wednesday.
\nHe also signed an executive order aimed at reducing China\u2019s grip on the global shipping industry and at reviving US shipbuilding.
\nTrade war with China
\nChina rejected what it called threats and blackmail from Washington.
\nChina will \u201cfollow through to the end\u201d if the US insists on its own way, Commerce Ministry spokesperson He Yongqian told a regular press briefing. China\u2019s door was open to dialogue, but this must be based on mutual respect, the ministry said.
\nBeijing may again respond in kind after imposing 84% tariffs on US imports on Wednesday to match Trump\u2019s earlier tariff salvo.
\nTrump, who claims the tariffs aim to fix US trade imbalances, said a resolution with China on trade is also possible. But officials have said they will prioritize talks with other countries as Vietnam, Japan, South Korea and others line up to try and strike a bargain.
\nChina\u2019s yuan hit its lowest against the dollar on Thursday since the global financial crisis.
\nEU pause
\nIn Europe, euro zone government bond yields jumped, spreads tightened, and markets scaled back their bets on European Central Bank rate cuts after Trump\u2019s latest announcement. European shares surged.
\nTrump\u2019s move was an important step towards stabilising the global economy, von der Leyen said, before announcing a pause in the EU\u2019s own counter-tariffs.
\nBut she warned they could be brought back in.
\n\u201cIf negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues,\u201d she said, before adding: \u201cAs I have said before, all options remain on the table.\u201d
\nTrump\u2019s reversal on tariffs is not absolute. A 10% blanket duty on almost all US imports will remain in effect, the White House said. The announcement also does not appear to affect duties on autos, steel and aluminium that are already in place.
\nThe US tariff pause also does not apply to duties paid by Canada and Mexico, because their goods are still subject to 25% fentanyl-related tariffs if they do not comply with the US-Mexico-Canada trade agreement\u2019s rules of origin.
\nThe EU had been due to impose extra tariffs on US imports including maize, wheat, motorcycles, poultry, fruit and clothing. Those are now suspended.
\nElsewhere, India was among countries that said it wants to move quickly on a trade deal with the United States.
\nUncertainty and concerns
\nMeanwhile, oil prices retreated 2% on Thursday as fears of a deepening US-China trade war and a possible recession eclipsed earlier relief created by Trump\u2019s announcement of a pause.
\nSome central bankers also remained cautious.
\nEuropean Central Bank policymaker Francois Villeroy de Galhau, speaking of the pause in the tariff hike, told France Inter Radio it was \u201cless bad news\u201d than before, but uncertainty remained and that was a threat to trust and growth.
\nAnd business leaders warned that not all was resolved.
\nThe head of the French wine and spirits lobby group FEVS said Trump\u2019s decision to hit pause was \u201chalf good news.\u201d
\nNicolas Ozanam said the move will initially allow French wine and spirits companies to resume shipments with lower tariffs, and therefore at the same level as other suppliers.
\nBut the 90-day window created logistical constraints, and given that 10% custom duties remained in place, the sector still faced inflationary pressures.
\n\u201cThis will still lead to a rise in prices and therefore a drop in consumption in the United States,\u201d he told Reuters.<\/p>\n","protected":false},"excerpt":{"rendered":"
\u201cWe want to give negotiations a chance,\u201d says European Commission chief Ursula von der Leyen brussels The European Union will pause its first countermeasures against US tariffs after President Donald Trump temporarily lowered the hefty duties he had just imposed on dozens of countries, European Commission chief Ursula von der Leyen said on Thursday. The […]<\/p>\n","protected":false},"author":2,"featured_media":471767,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-471736","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n