In a surprise shift that signals the potential for renewed transatlantic dialogue, the European Union has announced a 90-day delay in implementing retaliatory tariffs against the United States, following President Donald Trump’s sudden decision to pause new levies on European imports.

The move, confirmed by E.U. officials on Thursday, came just one day after the White House unexpectedly hit pause on its “reciprocal” tariff strategy, which had included plans to impose a 20% blanket tariff on E.U. goods. Instead, that figure has been reduced to 10% for the duration of the negotiation window.

President Trump’s reversal came hours after European leaders had approved a sweeping retaliation package — tariffs of 10 to 25 percent on $23 billion worth of U.S. goods, including soybeans, peanut butter, and personal care products. However, in light of the U.S. pivot, the E.U. opted to withhold enforcement.

“If negotiations are not satisfactory, our countermeasures will kick in,” said Ursula von der Leyen, President of the European Commission. “Preparatory work on further countermeasures continues.”

Though the pause offers a diplomatic lifeline, several of the more punitive U.S. tariffs — particularly the 25 percent duties on steel, aluminum, and automobiles — remain in place. These tariffs are the primary targets of the E.U.’s retaliation blueprint.

White House officials voiced optimism that the delay would create breathing room for a deal

“I think what’s going to happen is they are going to be pushed out for the 90 days, so they have time to negotiate with the president without having something hanging over their head,” said U.S. Commerce Secretary Howard Lutnick.

European Commission spokesperson Olof Gill echoed a more cautious tone:

“We’ll take a bit of time to think, take a bit of time to analyze, take a bit of time to reflect.”

Over the past several weeks, Brussels has sought to dissuade Washington from further escalation, repeatedly advocating for the elimination of industrial tariffs altogether.

“Tariffs are taxes that only hurt businesses and consumers,” von der Leyen said Wednesday. “That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”

Still, the Commission made it clear that Europe will continue to strengthen its internal market and build new trade alliances to reduce reliance on what von der Leyen called an “increasingly fickle” partner in the U.S.

“In times of uncertainty, the single market is our anchor of stability and resilience,” she wrote.

As both sides prepare for talks, ambiguity remains. Pressed on which tariffs were truly on hold and which remained active, Gill admitted the fast-moving developments have left even insiders scrambling to keep pace.

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