After weeks of rising tension, the European Union has agreed to pause its planned countermeasures against US tariffs—at least for now. The EU had originally prepared 21 billion euros’ worth of retaliatory tariffs, in response to former US President Donald Trump’s announcement of sweeping new import duties: 20% on EU goods overall, and 25% specifically on cars, steel, and aluminum. Following Trump’s surprise move to suspend parts of his tariff plan, EU Commission President Ursula von der Leyen confirmed that Europe would delay its response for 90 days to leave room for further negotiations. She emphasized that clear and predictable trade conditions are essential for businesses and supply chains, warning that tariffs ultimately hurt companies and consumers alike. Still, this pause is temporary. If talks don’t lead to an agreement, the EU has made it clear it is ready to implement its counter-tariffs swiftly.

Meanwhile, the stakes remain high for Germany: the Cologne-based IW Institute estimates that a full-scale tariff conflict could cost the German economy up to 200 billion euros over the next four years. For now, tensions have cooled slightly—but a full trade war between Europe and the United States isn’t entirely off the table yet.