JAKARTA - The European Union will temporarily suspend its first countermeasure against US tariffs after President Donald Trump temporarily suspends import duties he has recently imposed on dozens of countries.
The European bloc previously planned to launch a return rate of around 21 billion euros ($23.25 billion) of US imports starting next Tuesday in response to Trump's 25% tariff on steel and aluminum. The bloc still assesses how to respond to US car rates and the wider 10% levies still in effect.
"We want to give negotiations a chance," said European Commission Head Ursula von der Leyen.
"While completing the implementation of EU countermeasures that have strong support from our Member States, we will postpone it for 90 days," he continued.
Trump's sudden decision on Wednesday to stop most of his heavy new import duties brings relief to the hit global market and anxious global leaders, even as he increases the trade war with China.
The change in attitude, which occurred less than 24 hours after the high new rate was imposed, follows the most intense episode of financial market volatility since the early days of the COVID-19 pandemic. The US stock index surged higher after the news, and relief continued into Asian and European trade on Thursday.
Before Trump turned around, the upheaval had removed trillions of dollars from the stock market and caused a spike in the yields of disturbing US government bonds that appeared to have caught the attention of the US president.
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Trump continues to pressure China with the world's number 2 economic power and the second-largest US import provider by raising China's import rate to 12% from the 104% level in effect on Wednesday.
Trump signed an executive order aimed at reducing China's grip on the global shipping industry and reviving US shipbuilding.
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