BREAKING NOW: After threatening to fan the flames of conflict, the European Union has had to backtrack and reluctantly agree with President Donald Trump’s no-nonsense trade approach.
Specifically, the UE announced it will pause its planned retaliatory tariffs on $23 billion worth of American goods for 90 days.
The move directly matches President Trump’s strategic 90-day tariff reduction aimed at bringing global trading partners to the negotiating table.
European Commission President Ursula von der Leyen reluctantly acknowledged Trump’s announcement.
She signaled the EU’s retreat from its aggressive stance against America’s protective tariffs.
The decision effectively puts on hold the European bloc’s three-phase retaliatory strategy that would have targeted American exports beginning April 15.
President Trump had imposed a universal 10% levy on imports (excluding China) and maintained a 25% tariff on aluminum, steel, and cars entering the United States.
This bold America First policy forced global trading partners to recognize the seriousness of his administration’s commitment to fair trade practices.
While temporarily reducing tariffs on most nations, the Trump administration has intensified pressure on China with massive 125% tariffs on Chinese goods.
This targeted approach showcases President Trump’s strategic focus on confronting China’s predatory trade practices while giving other nations an opportunity to negotiate better terms.
Von der Leyen recognized the strength of the president’s position and stated that “we want to give negotiations a chance.”
However, she also warned, “If negotiations are not satisfactory, our countermeasures will kick in.”
EU members had previously voted to approve retaliatory tariffs in response to President Trump’s 25% tariffs on steel and aluminum imports. Still, the 90-day pause now gives both sides time to reach an agreement.
The EU’s planned countermeasures would have targeted American agricultural products, consumer goods, and other exports critical to American producers and the U.S. economy.
President Trump explained his decision to pause the new tariffs by noting that some countries were getting “yippy.”
The markets responded positively to this strategic pause, with U.S. stocks surging and similar rallies occurring in Asia-Pacific and European markets.
Following the announcement, the euro rose 1.2% against the U.S. dollar, indicating market confidence in President Trump’s approach.
Relations between the EU and the U.S. have deteriorated in recent years.
President Trump consistently calls out the European bloc for unfair trade practices that disadvantage American workers and businesses.
The president’s firm stance on trade has forced international partners to acknowledge America’s concerns and engage in serious negotiations.
While China continues to lash out and accuse the U.S. of acting out of “selfish interests,” President Trump is working to reset the global trade balance in America’s favor.
