The European Commission has announced a delay in imposing retaliatory tariffs against US goods, originally scheduled to take effect soon. This decision aims to provide additional time for negotiations in light of US tariff proposals.
EU Postpones Reacting to US Tariff Threats as Negotiations Continue
EU Postpones Reacting to US Tariff Threats as Negotiations Continue
European Commission pledges to extend the suspension of retaliatory tariffs against the US amidst ongoing trade discussions.
The European Union has postponed its planned retaliatory tariffs on American exports as trade tensions with the United States escalate. European Commission President Ursula von der Leyen revealed the decision during a press conference, noting that the countermeasures — set to target €21 billion worth of US goods — were originally scheduled to begin Tuesday in response to US President Donald Trump's import duties on steel and aluminum. Originally suspended in March, the tariffs will now remain on hold until early August to allow time for negotiations.
In a letter from Trump, the US president announced intentions to impose a 30% tariff on EU imports, effective August 1, threatening further increases should the EU retaliate. Speaking on Fox News, Trump claimed the tariffs are beneficial, stating that they have resulted in "hundreds of billions of dollars" flowing into the US economy.
Von der Leyen expressed a preference for reaching a negotiated settlement with the US, reinforcing the EU's commitment to diplomatic resolutions in trade disputes. She stated, “We will use the time we have now until August 1,” continuing, “We have always made clear we prefer a negotiated solution.”
EU trade ministers are scheduled to gather in Brussels on Monday to assess their response strategy. German Finance Minister Lars Klingbeil stressed the necessity for “serious and solution-oriented negotiations” but emphasized that decisive countermeasures would be required to protect EU jobs and businesses if discussions falter.
French President Emmanuel Macron has similarly urged the European Commission to firmly defend European interests amid these developments. The US administration’s proposals affect not just the EU but extend to 24 other countries, as it aims to secure multiple trade agreements swiftly.
So far, Trump has outlined trade agreements with the United Kingdom and Vietnam, as negotiations progress with other nations. The globe is watching how these trade dynamics unfold as both sides navigate their economic interests.
