Overview

• US President Donald Trump has paused additional tariff hikes for 90 days, reducing most tariffs on EU exports to a 10% minimum rate.
• The European Commission has suspended its planned counter-tariffs on over €20 billion worth of US goods, including steel, aluminum, and agricultural products, to facilitate negotiations.
• Both sides aim to avoid a full-scale trade war, but the EU has warned it will implement tariffs if talks fail to yield satisfactory results.
• Concerns persist in Europe over the potential influx of Chinese goods, especially electric vehicles, as trade dynamics shift under US tariff policies.
• The EU is considering broader tools, like the Anti-Coercion Instrument, for future retaliation if negotiations with the US falter.