EU Will Put Tariff Retaliation on Hold for 90 Days to Match Trump's Pause

EU Will Put Tariff Retaliation on Hold for 90 Days to Match Trump’s Pause

Brussels, April 10, 2025 — In a calculated move to de-escalate growing trade tensions, the European Union announced today that it will suspend its planned retaliatory tariffs on U.S. goods for 90 days. The decision comes in direct response to a similar pause announced by the Biden administration earlier this week on proposed tariffs targeting EU exports, signaling a potential opening for renewed dialogue between the longtime transatlantic allies.

The EU Commission confirmed the decision following a closed-door meeting in Brussels, where trade ministers from all 27 member states unanimously endorsed the pause. The temporary suspension is aimed at creating diplomatic space for negotiations on key trade issues that have been simmering since the Trump-era tariff disputes and reignited under the latest round of U.S. protectionist measures.

“We are matching Washington’s 90-day pause with one of our own, not as a concession, but as a gesture of good faith and a clear signal that we are committed to finding a balanced and sustainable solution,” said Valdis Dombrovskis, the EU Trade Commissioner, in a press conference Thursday morning. “The EU remains a strong advocate for fair trade and mutual respect.”

The conflict stems primarily from long-standing disagreements over subsidies for aircraft manufacturers and recent disputes involving electric vehicles, steel and aluminum, and digital services taxation. The Trump administration's revived influence on U.S. trade policy—despite the current administration—has complicated efforts to smooth over these issues, with some new tariffs taking on a distinctly nationalist tone.

Earlier this week, former President Donald Trump, now a leading contender for the Republican presidential nomination, praised the Biden administration's pause as “smart but long overdue,” while also warning that “tougher measures will come” if U.S. industries remain “under threat from foreign competition.”

European leaders, wary of Trump’s return to political prominence and his record on trade, appear eager to use the 90-day window to lock in more stable agreements that can withstand future shifts in Washington’s political landscape.

“Both sides understand that a transatlantic trade war would be lose-lose,” said Markus Ferber, a German member of the European Parliament. “This pause is not a retreat—it’s a regrouping.”

Trade analysts note that the 90-day period will be crucial. If tangible progress isn’t made, tariffs could resume with even greater force, potentially impacting billions in goods, from American motorcycles and whiskey to European luxury cars and machinery.

Business leaders on both sides of the Atlantic welcomed the announcement, though many urged policymakers not to waste the opportunity. “This is a chance to reset the tone of the relationship,” said Catherine Lee, senior analyst at the Center for Transatlantic Policy. “But the clock is ticking.”

Negotiators are expected to begin meetings as early as next week, with a focus on removing existing tariffs, harmonizing regulations, and addressing mutual concerns over supply chain resilience and green technology subsidies.

Whether the temporary détente evolves into lasting détente remains to be seen. For now, the EU and U.S. have bought themselves time—and the world is watching to see what they do with it.