Key takeaways:

• The European Union has announced a 90-day pause on its planned retaliatory tariffs against US goods.
• This suspension follows President Trump's temporary halt on sweeping tariffs imposed on global trading partners.
• European Commission President Ursula von der Leyen emphasized the need for lucrative trade negotiations to stabilize the economy.
• EU countries are exploring various strategies to prepare for any potential trade disagreements post-pause.
• Trade measures worth over €20 billion are currently on hold, with a commitment to resume if negotiations fail.

In a significant move, the European Union announced on April 10 that it will suspend retaliatory tariffs worth €20.9 billion ($23 billion) against US goods for 90 days. This decision was made following President Trump's notable pause on his recently announced tariffs aimed at various global trading partners, in hopes of opening the door for improved trade negotiations. European Commission President Ursula von der Leyen confirmed that the EU aims to give negotiations an opportunity to succeed, while also warning that if talks remain unsatisfactory, countermeasures will be reinstated.

Trump's proclamation of a “90 day PAUSE” is intended to facilitate discussions with countries affected by tariffs. The EU is currently subjected to a 20% tariff rate, which has created instability in trade relations. Subsequently, countries included in the pause will be subject to a baseline tariff of 10% while ongoing negotiations are conducted. The EU remains determined to negotiate a "zero for zero" trade deal, aiming for the elimination of tariffs on industrial goods, including automobiles, as suggested in previous proposals to Washington.

Moreover, the suspension has provided a momentary respite for EU member countries as they work to strategize future actions if negotiations do not yield favorable results. EU finance ministers are anticipated to convene to discuss potential cooperative measures to alleviate the economic impact of heightened tariffs on affected industries such as steel, aluminum, and automobiles. However, many EU governments, including prominent economies like Germany and France, have indicated that addressing potential losses will require comprehensive planning due to varying fiscal capacities across member states.

As the EU maintains its focus on achieving frictionless intercontinental trade relations, von der Leyen affirms that "Europe intends to diversify its partnerships," by engaging nations that account for 87% of global trade and support a commitment to free and open commerce. The union is hopeful that through measured dialogue and negotiation, they can navigate this period of uncertainty without reverting to punitive tariffs.

For more detailed coverage, visit Le Monde.