The EU has suspended its retaliation against US steel and aluminium tariffs, pausing measures against €21bn of US imports for 90 days in the hope of securing a “win-win” trade agreement with Washington.
The move follows President Donald Trump’s decision on Wednesday to pause tariffs on most countries that were additional to a universal 10 per cent duty. Trump said all countries that had not yet issued retaliatory tariffs — including the EU — would benefit from the standstill for at least 90 days.
European Commission president Ursula von der Leyen said on Thursday that the EU wanted “to give negotiations a chance”. “If negotiations are not satisfactory, our countermeasures will kick in,” she added.
Trump had imposed an extra 10 per cent “reciprocal” tariff on all EU imports on top of the standard 10 per cent import duty, which has been applied. Separate US-imposed tariffs on cars, steel and aluminium imports from the EU at 25 per cent will remain in place.
Brussels had planned to introduce retaliatory tariffs on €21bn worth of goods in retaliation to the steel and aluminium tariffs, hitting poultry, clothing and metals. The measures were due to kick in next week but the commission said on Thursday that it would stop the implementation to allow for further negotiations.
“We are ready to make deals, let’s talk,” said EU trade spokesperson Olof Gill, adding that the commission believed “a win-win trade agreement” could be reached. During negotiations “everything is on pause”, he added.
After meeting with major industry groups on Thursday, EU industry commissioner Stephane Séjourné said that the bloc must remain “calm and cautious”.
“The only certainty is that instability will remain for the next four years,” he said. “Europe must be this zone of stability where we produce, where we invest and where we innovate.”
The countermeasures, which were agreed by 26 of the EU’s 27 member states on Wednesday, will still come into effect should a “satisfactory” outcome not be reached in the 90-day period, the commission said. Hungary was the only member state to oppose the package.
The EU will still legally adopt retaliatory measures but will immediately suspend them, allowing it to reactivate them more promptly should negotiations fail.
Brussels is also working on other retaliatory options. “All options remain on the table,” von der Leyen said.
Gill said EU trade commissioner Maroš Šefčovič had spoken to US commerce secretary Howard Lutnick on Tuesday. No further in-person meetings with the US administration were planned at present.
