EC welcomes US pause on tariffs, pauses own tariffs for 90 days while talks continue
04/10/2025 11:38:33 UTC|Top News
AuthorAnnalisa Villa<.>,<.>
Aluminum
Steel

* US tariffs on steel and aluminium remain
* EC advocates zero-for-zero tariff deal, focus on diversifying trade
* Uncertainty on levies leading to pause in steel purchases

European Commission President Ursula von der Leyen has welcomed US President Donald Trump’s announcement of a 90-day pause on the US’ planned tariffs, and agreed to also put EU countermeasures on hold for 90 days, according to a statement from Brussels April 10.
Trump stunned global investors on April 9, announcing a90-day pauseon higher tariffs on trade partners from midnight, while also raising duties on China to 125%.
Von der Leyen said in a second statement that the EC wanted to give negotiations a chance.
“While finalizing the adoption of the EU countermeasures that saw strong support from our member states, we will put them on hold for 90 days. If negotiations are not satisfactory, our countermeasures will kick in,” she said, adding that preparatory work on further countermeasures continued and all options remain on the table.
It’s an important step towards stabilizing the global economy. Clear, predictable conditions are essential for trade and supply chains to function, the EC said in an earlier statement.
The commission also underlined in its statement, as it has done in the past, its view that tariffs are taxes that only hurt businesses and consumers, adding it has consistently advocated for a zero-for-zero tariff agreement between the EU and the US.
The EC said that, while it remains committed to constructive negotiations with the US, it continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade.

Separate tariffs

EU member states had on April 9 officially endorsed an EC proposalto implement trade countermeasuresagainst the US, as a direct response to the US imposing a 25% tariff on steel and aluminium imports from the EU in March.
Trump’s announcement on April 9 is not understood to have removed the US’ 25% tariff level on steel and aluminum.
In spite of the generally positive response of the global markets to the tariff pause, traders of physical steel and sources at service centers told Platts April 10 that continued uncertainty over levies has led to a halt in purchases.
Steel end-users are pausing trade as rules are unclear, one European trade source said. It is also interesting to see now what will be the domino effect on the higher Chinese tariffs. Europe is well equipped now to protect its internal market, but we all risk having deflation, and this is not good for anyone.”
“The risk is a paralysis of the market as deflation can lead to reduced economic activity with low prices that can lead to decreased overall spending, he added.
Meanwhile, industry association worldsteel has opted to postpone its steel market outlook, in a sign of the tentative mood in the sector.
The association typically releases a biannual Short Range Outlook for steel demand coinciding with its General Meetings of Members in April and October.
However, worldsteel said in a short statement that it believes the imposition of tariffs by the US administration could render the SRO outdated, adding that the outlook will now be reviewed and reissued at an appropriate time.
Back in October, the association said it expected to see a broad-based recovery in the world excluding China in 2025, with global steel demand forecasts to finally rebound by 1.2% in 2025 to reach 1. 78 million mt.
Platts part of S&P Global Commodity Insights, assessed 62% Fe IOPEX North China at Yuan 770/wmt FOT April 9, unchanged from April 8, or at $98.91/dmt on an import-parity basis.
Platts assessed 62% Fe IOPEX East China at Yuan 756/wmt FOT over the same period, down Yuan 7/wmt, or at $97.68/dmt on an import-parity basis.