EU welcomes Trump's 'pause' on reciprocal tariffs but to focus countries with 87% global trade

After US President Donald Trump paused most tariffs for 90 days, the European Union (EU) welcomed the reprieve but indicated that the bloc would now focus more on trade with non-US countries that amount to the vast majority of the world trade.

Hours after Trump’s tariffs came into effect on Wednesday, he paused most of them for 90 days. Essentially, he gave countries the time to negotiate agreements with the United Stattes. The White House has said that around 50 countries have so far reached out for trade talks.

After the pause, EU chief Ursula von der Leyen said that the bloc welcomed the pause and stressed that clear and predictable conditions are essential for trade and supply chains to function. She stressed that tariffs are nothing but taxes that hurt everyone.

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“Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States. The European Union remains committed to constructive negotiations with the United States, with the goal of achieving frictionless and mutually beneficial trade,” said Von der Leyen.

At the same time, Von der Leyen said that the EU would work to diversify its trade outside of the United States. Currently, the United States is the largest trading partner of EU.

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“At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87 per cent of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” said Von der Leyen.

I welcome President Trump’s announcement to pause reciprocal tariffs. It’s an important step towards stabilizing the global economy.

Clear, predictable conditions are essential for trade and supply chains to function.

Tariffs are taxes that only hurt businesses and consumers.…

— Ursula von der Leyen (@vonderleyen) April 10, 2025

Last week, Trump announced the most sweeping tariffs in nearly a century. He imposed 10 per cent tariffs on all imports and slapped higher tariffs on a selected group of countries. While he spared traditional US adversaries Russia and North Korea, he slapped high tariffs on allies and partners.

Trump slapped India and South Korea with 26 per cent tariffs, Japan with 24 per cent tariffs, the EU with 20 per cent tariffs, and Israel with 17 per cent tariffs, among other countries. He slapped China with 34 per cent tariffs (on top of existing 20 per cent tariffs). He has since hiked tariffs on China twice. Currently, China faces 125 per cent tariffs.

Hours after tariffs announced last week went into effect on Wednesday, Trump announced a 90-day pause on most tariffs.

After the pause, most countries face 10 per cent tariffs on most trade with the United States. However, 25 per cent tariffs on automobiles, steel, and aluminium remain in place. On goods not covered by the US-Mexico-Canada Agreement (USMCA), Canada and Mexico also continue to face 25 per cent tariffs. However, these two countries will not face 10 per cent tariffs that all countries otherwise now face, according to the White House.