European Union (EU) President Ursula von der Leyen on Thursday welcomed US President Donald Trump’s decision to halt planned tariff increases as an “important step towards stabilising the global economy”.
“Clear, predictable conditions are essential for trade and supply chains to function,” the European Commission president said in a statement, reiterating the bloc’s proposal for bilateral tariff exemptions for cars and other industrial goods. “The European Union is committed to constructive dialogue with the United States.”
The EU was hit with a 20 percent tariff as part of Trump’s global tariffs, and the commission is preparing a response. However, Brussels has made it clear it does not intend to retaliate. Trump threw global markets into chaos by announcing punitive tariffs last week before announcing on Wednesday that he would suspend the measures for nearly all nations for 90 days.
The 27-nation EU is one of dozens of countries currently facing a basic tariff rate of 10 percent. Japan is also among the countries facing a basic tariff rate of 10 percent, but not China. The bloc is subject to previously imposed US tariffs on steel and aluminum, and it retaliated on Wednesday.
Trump’s aggressive trade moves and hostile rhetoric against the EU have focused attention in Brussels, where leaders are now moving to forge closer trade ties with other nations, including India. “Europe remains focused on diversifying its trade partnerships, engaging with countries that account for 87 percent of world trade,” von der Leyen said. He said the EU would also strengthen its single market and remove barriers.
