Europe’s major move after Donald Trump’s tariff backflip

European Commission President Ursula von der Leyen said that the EU wants “to give negotiations a chance”.

Donald Trump has suspended higher tariffs for 90 days and lowered his reciprocal tariffs to 10 per cent in a stunning turnaround just hours after the import taxes came into play.

Mr Trump said he was pausing the tariffs because 75 countries had asked to negotiate deals.

At the same time he slapped 125 per cent tariffs on China after the country’s retaliation attempts.

Australia could be “caught in the middle” of the US and China, a market analyst has warned.

Mr Trump, 78, told reporters at the White House that “yippy” critics and a “queasy” bond market were factors in his abrupt reversal — while uttering into a hot mic that a massive uptick in stock value has “gotta be a record” as the Dow Jones Industrial Average surged more than 7 per cent.

Donald Trump has deployed Elon Musk as concerns over how his tariffs will impact a submarine deal tied to Australia.