European Commission President Ursula von der Leyen welcomed US President Donald Trump's decision to halt a planned increase in tariffs as "an important step towards stabilising the world economy".

"Clear and predictable conditions are essential for the functioning of trade and supply chains," von der Leyen was quoted as saying by AFP.

"The European Union remains committed to constructive negotiations with the United States," she said.

The EU was hit by a 20 percent tariff as part of Trump's universal duties and the Commission is preparing its response, although Brussels has made clear it prefers to avoid retaliation.

Trump announced the punitive tariffs last week, throwing global markets into chaos until he decided on April 9 that he would suspend the measures on almost all countries for 90 days.

The 27 EU members are among dozens of countries, including Japan but not China, that now face a base tariff rate of 10%.

The bloc also continues to be subject to previously imposed U.S. tariffs on steel and aluminum, which it retaliated against on April 10, and on the auto sector.

Trump's aggressive trade moves and hostile rhetoric against the EU have focused attention in Brussels, with leaders now trying to forge closer trade ties with other countries, including India.

"Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87 percent of global trade," von der Leyen said.

The EU will also strengthen its own single market and remove barriers, she added. | BGNES