• The EU will put them on hold for 90 days: von der Leyen.
• “If the negotiations are not satisfactory, countermeasures can be taken.”
• Global stock markets surfaced after Trump stopped tariffs.

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 anti-competition on approximately 21 billion euros ($23.25 billion) of U.S. imports 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 10% of the tax 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.

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.

His turnaround was the most intense financial market volatility since the 19 pandemics, less than 24 hours after the launch of new tariffs.

The U.S. stock index shot higher and higher in the news, and 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.

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 125% of the 104% level 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.

Trade war with China

China rejects Washington’s alleged threats and blackmail.

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 imposing 84% tariffs on U.S. imports on Wednesday to meet Trump’s earlier tariff Salvo.

Trump claims tariffs are intended to address U.S. trade imbalances, and he said a trade resolution with China is also possible. But officials said they would prioritize talks with other countries as Vietnam, Japan, South Korea and others are bargaining.

China’s yuan beat the dollar on Thursday since the global financial crisis.

I’ll stop

In Europe, eurozone government bond yields jumped and interest rate spreads tightened, and the market shranked its bet on the ECB’s tax cuts following Trump’s latest announcement. European stocks surged.

Trump’s move is an important step to stabilize the global economy before Von der Leyen announced a pause in the EU’s own anti-election campaign.

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.” ”

Trump’s reversal of tariffs is not absolute. The White House said nearly all blankets imported by the United States will remain 10%. The announcement also does not appear to affect the duties of cars, steel and aluminum already in existence.

The U.S. tariff pause also does not apply to the duties paid by Canada and Mexico, because their goods still suffer 25% of fentanyl-related tariffs if their goods do not comply with the rules of origin of the U.S.-Mexico-Canada Trade Agreement.

The EU will impose additional tariffs on U.S. imports, including corn, wheat, motorcycles, poultry, fruits and clothing. These are now suspended.

Elsewhere, India is one of the countries that have reached a trade agreement with the United States.

Uncertainty and concern

Meanwhile, oil prices retreated 2% on Thursday amid concerns about the deepening of the U.S.-China trade war and earlier relief caused by Trump’s announcement of a moratorium.

Some central bankers are also 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.

Business leaders warn that not everyone has been resolved.

French wine and spirits head of Hall Group FEVS said Trump’s decision to suspend was “half the good news.”

Nicolas Ozanam said the move would initially allow French wine and spirits companies to resume goods with lower tariffs, so at the same level as other suppliers.

However, the 90-day window creates logistical restrictions and the industry is still under inflationary pressure given that 10% of custom responsibilities remain.

“This will still lead to higher prices and therefore consumption in the United States is down,” he told Reuters.