European Union hits pause on planned retaliatory tariffs for U.S.
The European Union will pause its first countermeasures against US rates after President Donald Trump has temporarily reduced the heavy duties he had just imposed on dozens of countries, the head of the European Commission Ursula von der Leyen said on Thursday.
The block was supposed to launch counter-cavidal on around 21 billion euros ($ 32.7 billion of CDN) of US imports from next Tuesday in response to the 25 % Trump rates on steel and aluminum. He is still evaluating how to respond to the US car rates and the largest 10 % withdrawals still in place.
“We want to give the negotiations a chance,” said Von der Leyen on X. “while the adoption of the EU countermeasures ended who have seen a strong support from our Member States, we will await them for 90 days.”
In Europe, the yields of the Euro zone government bonds have widespread and the markets have reduced their bets on the cuts to the rates of the European Central Bank after the last announcement of Trump. European actions have increased.
Trump’s move was an important step towards stabilization of the global economy, Von der Leyen said before announcing a break in the EU counter-cavities.
But he warned that they could be reported.
“If the negotiations are not satisfactory, our countermeasures will enter. The preparatory work on further continuous countermeasures,” he said, before adding: “As I said before, all the options remain on the table”.
The EU had had to impose extra rates on US imports including corn, wheat, motorcycles, poultry, fruit and clothing. Those are now suspended.
Despite the recovery, some bankers and central analysts have remained cautious.
The politician of the European Central Bank Francois Villas de Galhau, speaking of the break in the tariff excursion, told France Inter Radio that was “less bad news” than before, but the uncertainty remained and this was a threat to trust and growth.
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China is not spared
Trump’s sudden decision on Wednesday to pause most of his heavy duties have brought relief to the abused global markets and anxious global leaders, even if he collected a commercial war with China.
US officials initially issued conflicting statements that a 10 % basic rate on all goods would apply to Canada. The White House confirmed that it will not do so. Paul Beaudry, former deputy governor of the Canada bank, says that for now it is good news for Canada, but the Trump administration could still change your mind at any time.
Trump’s reversal on the rates imposed on other countries is also not absolute. A 10 % general duty on almost all US imports will remain in force, said the White House. Furthermore, the announcement does not seem to influence duties on cars, steel and aluminum that are already underway. That 10 % general service does not include Canada; Instead, we continue to face rates of 25 % on non -cusma goods, steel and aluminum and some vehicles.
Trump’s Turnbout, who arrived less than 24 hours after they started the new strong rates, has consequently seen the US equity indices shooting higher and the relief continued in the Asian and European negotiations on Thursday.
Before the U -yield of Trump, the upheaval had canceled trillion dollars from the equity markets and led to a disturbing wave of US bonds that seemed to capture the attention of the President of the United States.
Meanwhile, China has rejected what they called threats and blackmail from Washington.
The US-China commercial war is in full swing, with neither parts showing backup signs. Andrew Chang explains how China is positioned to absorb the shock of US rates and what this global economic interruption for their place in the world order could mean. Images provided by Getty Images, The Canadian Press and Reuters.
Trump has maintained pressure on China, economy n. 2 in the world and the second largest supplier of the US imports with an increase in rates on Chinese imports at 125 % compared to the 104 % level that entered the arrival on Wednesday.
He also signed an executive order aimed at reducing Chinese grip on global naval industry and relaunching the US naval construction.
China “will follow until the end” if the United States insist in its own way, the spokesman for the Ministry of Commerce who said Yongqian to a regular printing briefing. The Chinese door was open to dialogue, but this must be based on mutual respect, said the ministry.
Beijing can respond again in nature after imposing 84 % rates on US imports on Wednesday to combine the previous Trump tariff save.
Trump says that the rates aim to correct US commercial imbalances, although a great majority of economists does not consider a commercial deficit alone as a sign of a country’s economic health.
US officials have declared that it will give priority to interviews with other countries such as Vietnam, Japan, South Korea and others sides to try to hit a deal.
The Chinese yuan touched the lowest against the dollar on Thursday from the global financial crisis.
