EU Halts Planned Tariffs After Temporary U.S. Reprieve
An abrupt shift in U.S. trade policy has temporarily defused growing transatlantic tensions.
After slapping steep tariffs on imports from numerous countries, President Trump scaled back the measures within a day, prompting the European Union to freeze its planned retaliation—at least for now.
European Commission President Ursula von der Leyen confirmed that EU sanctions targeting U.S. goods, originally set to take effect next week, are on hold for 90 days. This pause aims to give diplomatic talks a chance, though preparations for potential countermeasures remain underway.
Inside the White House, trade officials are sorting through proposals from over a dozen countries hoping to sidestep the tariffs. Economic adviser Kevin Hassett indicated that some deals may be close, but decisions are still pending on which negotiations to prioritize.
READ MORE: Ray Dalio Warns Tariffs Signal Deeper Global Breakdown, Not Just Market Turmoil
Markets breathed a sigh of relief. U.S. equities rebounded sharply, dragging global markets upward after days of turbulence that erased trillions in stock value. Yields on U.S. bonds, which had spiked amid fears of a prolonged trade standoff, stabilized. Meanwhile, the eurozone saw a rally in both shares and bond markets.
Yet the pressure on China escalated. U.S. tariffs on Chinese goods jumped to 125%, while a fresh executive order sought to undercut China’s shipping influence and boost American shipyards. Beijing, calling the U.S. approach “blackmail,” warned of more reprisals and stressed the need for mutual respect in any talks.
Elsewhere, countries like India and Japan signaled urgency to secure trade arrangements with Washington. But uncertainty looms. Canada and Mexico, for instance, remain exposed to separate duties linked to drug control policies.
Even with the partial rollback, not all sectors benefit. The 10% baseline tariff on nearly all imports still stands, creating inflationary stress for industries like tech and medical equipment. French exporters, especially wine and spirits producers, expect short-term gains—but warn that a three-month grace period complicates shipping timelines and pricing.
Oil dipped and central bankers voiced caution, highlighting that the underlying issues—market instability, trade fragmentation, and policy unpredictability—remain unresolved despite the temporary calm
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
