On April 9, EU Member States approved the European Commission’s proposal to introduce trade countermeasures, a 25% tariff on steel and aluminum, against the US, starting from April 15, in retaliation for the US decision to impose reciprocal tariffs.

However, in a sudden turn of events, President Donald Trump decided to pause tariffs for 90 days on nearly 60 countries, except China. The US administration increased tariffs on goods from China to 125%. As an answer to this sudden change in mind regarding the tariffs on the EU, the EU announces that it will pause its first countermeasures against US tariffs.

“We took note of the announcement by President Trump.

We want to give negotiations a chance.

While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.

If negotiations are not satisfactory, our countermeasures will kick in.

Preparatory work on further countermeasures continues.

As I have said before, all options remain on the table.”

This was the statement by Ursula von der Leyen, the president of the European Commission, regarding the EU’s decision to pause its first countermeasures against US tariffs for 90 days.

With these dynamic and unpredictable changes from the US administration under President Trump, it remains to be seen what the future holds and how China and other countries will react to the newly occurring situation.

• Commission proposal to impose trade countermeasures against US obtains necessary support from EU Member States
• BBC: US pauses higher tariffs for most countries after market havoc, but hits China harder
• Reuters: EU pauses countermeasures following Trump’s tariff reprieve

On April 2, 2025, President Donald J. Trump signed a sweeping executive order aimed at reshaping US trade policy. With the new directive, the US imposes new reciprocal tariffs to address trade deficits, targeting countries with significant trade imbalances and restrictive import practices. The move marks a significant shift in the US approach to international trade, focusing on fairness, reciprocity, and the long-term health of the American economy.

The order establishes a baseline 10% tariff on nearly all imported goods, while imposing higher rates on countries that limit market access to US exports. Specific tariff hikes include 34% on imports from China, 46% on Vietnamese goods, and 20% on products from the European Union. The administration stated that these measures are designed to correct “unfair and non-reciprocal trade practices” that have contributed to the US running persistent and historically large goods trade deficits for decades.

Supporters argue that the policy will create a more level playing field for American manufacturers and workers, potentially spurring domestic production and reducing dependency on foreign goods. Critics, however, caution that retaliatory tariffs and higher consumer prices could follow, sparking trade tensions in key global markets.

Nevertheless, the decision underscores the administration’s broader economic strategy: to use trade policy as a tool to enforce fair treatment of US products and ensure reciprocal market access. According to the White House, this is not just about tariffs, it is about restoring balance and sovereignty in global trade.

As the US imposes new reciprocal tariffs to address trade deficits, businesses across industries are advised to review their supply chains and stay informed about further policy changes. This could reshape the global trade environment for years to come.

White House – Regulating Imports with a Reciprocal Tariff to Rectify Trade Practices that Contribute to Large and Persistent Annual United States Goods Trade Deficits