Following the announcement from US President Donald Trump that he would place a 90-day pause on the implementation of a 20% tariff on the EU, the European Commission has responded in kind.

However, this comes against the backdrop of an escalating trade war between the US and China.

This week Trump announced that there would be a 90-day pause on higher rates of tariffs that he announced last week, which included the 20% tariff on the EU.

It is understood that a blanket tariff rate of 10%, also announced last week, will remain in effect for those 90 days. It is also understood that all these tariff rates are in addition to the tariffs that have always been in place for goods entering the US.

However, in light of Trump's decision to put a hold on the higher tariff rate, the EU has now reciprocated.

EU member states had already voted in favour of the commission’s proposal to introduce trade countermeasures against the US.

After Trump's announcement, commission President Ursula von der Leyen said in a statement: "We took note of the announcement by President Trump. We want to give negotiations a chance.

"While finalising the adoption of the EU countermeasures that saw strong support from our member states, we will put them on hold for 90 days," she added.

"As I have said before, all options remain on the table," President von der Leyen added.

Responding to the announcement from the commission president, Tánaiste and Minister for Foreign Affairs and Trade Simon Harris said: "Continuing with our measured and coherent response to the global trading situation, Ireland supports the suspension of EU countermeasures for 90 days.

"This further enhances the space and environment for meaningful and substantive engagement between the EU and US," Minister Harris added.

He was speaking after a visit to Washington, where he met with US Secretary for Commerce Howard Lutnick.

The Tánaiste indicated that the outworkings of that meeting - which took place before Trump announced the pause on the US tariffs - indicate that negotiations between the US and the EU on trade issues are now likely to take place.

"It has always been our preference that dialogue would have happened before tariff announcements. Clearly that was not the position of the Unites States. However, after my discussions...it is now clear to me that such engagements and negotiations are likely," he said.

The issue of tariffs is being increasingly dominated by the escalating trade war being between the US and China.

In announcing the pause on most tariffs earlier this week, Trump also announced an increase in the tariff on Chinese goods to 125%.

He said: "I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately. At some point, hopefully in the near future, China will realize that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable."

In response, China has announced that its tariff on US goods would increase from 84% to 125%.

China's Ministry of Finance said today (Friday, April 11): "The US's imposition of abnormally high tariffs on China seriously violates international economic and trade rules, basic economic laws, and common sense, and is...unilateral bullying and coercion.

The ministry confirmed that that the tariff rate would increase to 125%, and that, because there will be no "market acceptance" of US goods in China at that rate, the country would ignore any further increases in tariffs levied by the US.