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EU suspends tariff response and calls for dialogue with US
European leaders are eager for a pause in the tariff war. According to the European Commission, starting April 14, the European Union has officially suspended its retaliatory measures against US imports. The suspension will remain in effect for three months, until July 14, 2025, the European Commission confirmed.
If Washington and Brussels fail to reach an agreement during this period, especially on rolling back mutual tariffs, the European Union may proceed with countermeasures targeting US goods worth up to €21 billion. The European Commission emphasized that it was important to allow space for negotiations between Europe and the United States, stressing the need for flexibility and room to maneuver.
Previously, US President Donald Trump sharply increased import duties on products from 185 countries, setting a base tariff rate of 10%. However, for several nations, including key American allies, these duties were set significantly higher. For EU member states, US tariffs were raised to 20% of the customs value.
Soon after, Trump announced a 90-day suspension of import duties for goods from 75 countries, many of which are members of the European Union. The White House attributed this decision to growing market panic over the aggressive trade stance of the United States. Trump signaled that he would consider easing tariffs if targeted countries offered concessions, especially on goods facing elevated duties.
According to Politico, citing internal European Commission documents, EU countermeasures, if implemented, could be strategically targeted at exports from so-called “red states” in the US, whose populations form the core of Trump’s voter base. These potential tariffs would affect soybeans, meat, tobacco, iron, steel, and aluminum from the United States.
However, experts warn that global trade could suffer significantly if tensions escalate. A full-scale trade war between the European Union and the United States could result in a 7% decline in global GDP, analysts caution.
Published 18 April 2025
© InstaFintech Group
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© InstaFintech Group
