EU Puts Tariff Retaliation On Hold For 90 Days To Match Donald Trump's Pause

Brussels: The European Union has put tariff retaliation on hold for 90 days to match Donald Trump ‘s pause on trade tax, European Commission President announced on Thursday. US President had on Wednesday gave a major relief to partner trading nations as he announced a 90-day hold on his reciprocal tariffs to over 75 countries who didn't retaliate and were already in negotiations to find a way out of it either through Bilateral Trade Agreement (BTA) or trade deal based on mutual acceptance.

Taking to Truth Social, Donald Trump's owned social media platform, the US President provided a relief to over 75 countries on tariffs but punished China by imposing 125% trade tax saying Beijing didn't respect world markets and was engaged in retaliation to his tariffs rather than working out on a deal.

In his Truth Social post, Trump wrote, “Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

Informing about his clampdown on tariffs, Donald Trump said, “continued Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorised a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter."

The European Union said it was also putting on hold its retaliatory tariffs on United States to leave room for negotiations. European Commission President Ursula Von Der Leyen said that the commission represents trade for 27 member countries and they took note of the announcement made by Donald Trump.

Ursula Von Der Leyen further said that the European Union was putting on hold 20.9 billion euros — $23 billion — and give negotiations a chance but she warned that if talks didn’t come out as satisfactory, the trade tax will kick in.