EU suspends tariffs: Trump proposes trade peace!

EU suspends tariffs: Trump proposes trade peace!

Donald Trump has surprisingly withdrawn the introduction of blanket 20 percent tariffs on numerous trading partners, including the EU. This withdrawal could have far-reaching effects on international trade relations. In immediate response to Trump's decision, the EU decided to suspend for 90 days its own tariffs, imposed just earlier on Wednesday as part of a response to US tariffs of 25 percent on steel and aluminum. EU Commission chief Ursula von der Leyen announced this in a statement. The EU member states support this decision, which was made through joint votes.

Von der Leyen made it clear that the EU would like to give negotiations with the USA a chance, but warned that countermeasures could be taken if the talks go unsatisfactorily. She also emphasized that tariffs are seen as harmful to companies and consumers and advocated for a zero-for-zero tariff agreement between the EU and the USA. A proposal to this effect was sent to Trump on Monday, but received a negative response. vol.at reports that…

Current customs regulations and their effects

Before Trump withdrew his tariffs, the EU and Germany already had new tariffs of 20 percent on exports to the USA, which came into force on April 9, 2025 at 6:01 a.m. CEST. These tariffs affect many countries with large trade deficits with the US and were introduced in response to the US special tariffs. Despite the recent changes, there are still critical voices who view the calculation basis for the country list as incorrect. Trump may also plan special tariffs on goods that were previously exempt from tariffs, including steel, aluminum, cars and auto parts. zdf.de states that...

The US government's aggressive trade policies have already led to a global stock market crash and there are concerns that a prolonged trade conflict could plunge the global economy into crisis. This tariff conflict could affect not only direct exporters, but also companies that supply raw materials, components or services to these exporters. According to an analysis, EU exports to the US could be reduced by up to 50 percent in the long term, which would have a significant impact on several key sectors such as pharmaceuticals and the automotive industry.

Long-term economic consequences

The simulations show that a flat rate of 25 percent on EU goods could reduce the EU's real gross domestic product (GDP) by an average of 0.25 percent. A decline of around 0.33 percent is estimated for Germany. To compensate for this loss, the EU could deepen its trade relations with free trade partners such as Canada, Mexico and Japan. This strategy includes reducing non-tariff barriers to trade and improving transport infrastructure. diw.de explains that…

In summary, the trade conflict between the US and the EU raises far-reaching economic questions, both in the short and long term. The coming weeks will be crucial in determining whether diplomatic efforts lead in a positive direction or whether the conflict continues to escalate.