U.S President Donald Trump's dramatic decision to pause hefty tariffs on dozens of countries was an important step towards stabilising the global economy, European Commission President Ursula von der Leyen said on Thursday.

Turning to the potential knock-on effect of a global trade war, von der Leyen said the EU “will not tolerate” Chinese goods hit by US tariffs being redirected to Europe, adding that Brussels would “take safeguards” if a new monitoring mechanism detected an increase in Chinese imports.

Novo Nordisk and Sanofi were among the companies threatening to hasten their exits to the U.S., as Trump promised pharma tariffs were coming “shortly.”