European Commission head Ursula von der Leyen said Thursday that the EU will suspend its first countermeasure to U.S. tariffs after President Donald Trump temporarily lowered his major responsibilities just imposed on dozens of countries.
The group was scheduled to start an anti-election campaign on about 2.1 billion euros ($32.7 billion CDN) imported by the U.S. next Tuesday in response to Trump’s 25% tariff on steel and aluminum. It is still evaluating how our car tariffs are being addressed and there is still a 10% tax that is still in place.
“We want to give negotiations a chance. While finalizing the EU’s countermeasures, our member states have strong support and we will put them on hold for 90 days,” von der Leyen said on X.
In Europe, eurozone government bond yields jumped, interest rate spreads tightened, and markets shrank their bets on the European Central Bank’s latest announcement. European stocks surged.
Von der Leyen said Trump’s move was an important step to stabilize the global economy, and then announced a halt in the EU’s own anti-election.
But she warned them that they could be taken back.
“If the negotiation is not satisfactory, our countermeasures will begin. Preparations will be made on further countermeasures, and then continues, “As I said before, all options are kept on the table.” ”
The EU will impose additional tariffs on U.S. imports, including corn, wheat, motorcycles, poultry, fruits and clothing. These are now suspended.
Despite the probation, some central bankers and analysts remain cautious.
European Central Bank policymaker Francois Villeroy de Galhau talked about the pause in the tariff rate hikes and told Radio France International that it was “worse” than before, but uncertainty still exists, a threat to trust and growth.
Front burner23:09Last tariffs in the United States
China’s misfortune is exempted
Trump’s sudden decision to suspend most of his new responsibilities on Wednesday has brought relief to global markets and anxious global leaders, even as he launched a trade war with China.
U.S. officials initially issued a contradictory statement on whether the benchmark tax rate for all commodities applies to Canada. The White House has confirmed that it will not. Paul Beaudry, former Lieutenant Governor of the Bank of Canada, said it is good news for Canada now, but the Trump administration can still change its mind at any time.
The reversal of Trump’s tariffs imposed on other countries is not absolute either. The White House said nearly all U.S. imports will maintain 10% of blanket liability. The announcement also does not appear to affect the duties of cars, steel and aluminum already in existence. The 10% blanket tax does not include Canada; instead, we continue to face a 25% tariff on non-Kusma commodities, steel and aluminum and some vehicles.
Trump’s turntable is less than 24 hours after the launch of new tariffs, resulting in higher stock indexes, so trading in Asia and Europe continued on Thursday.
Before Trump’s turnaround, turmoil removed trillions of dollars from the stock market and caused a disturbing surge in U.S. government bond yields, which seemed to have caught the attention of the U.S. president.
Meanwhile, China rejected Washington’s alleged threats and extortion.
The United States-China trade war is in full swing, with signs of backup on both sides. Andrew Chang explains how China absorbs the shock of U.S. tariffs and what this global economic disruption might mean for their position in the world order. Getty Images provided by images, Canadian Media and Reuters.
Trump’s pressure on China, the world’s second-largest economy and the second-largest provider of U.S. imports remained under pressure, with tariffs on Chinese imports rising to a level of 104% that was launched on Wednesday.
He also signed an executive order aimed at reducing China’s control over the global shipping industry and restoring U.S. shipbuilding industry.
Ministry of Commerce spokesman Yang Qian told regular press conferences that China will “follow the end” if the United States sticks to its own way. The ministry said China’s door opened up dialogue, but it must be based on mutual respect.
Beijing may respond again after Wednesday’s 84% tariff on U.S. imports matched Trump’s earlier tariff Salvo.
Trump claims that tariffs are designed to address U.S. trade imbalances, although the vast majority of economists do not regard trade deficits as a sign of a country’s economic health.
U.S. officials said they will prioritize talks with other countries as Vietnam, Japan, South Korea and others are working to bargain.
China’s yuan beat the dollar on Thursday since the global financial crisis.
