Trade tensions between the EU and the US have escalated, but both parties are seeking a negotiated resolution.
EU Postpones Retaliatory Tariffs Against US Amid Negotiation Efforts
EU Postpones Retaliatory Tariffs Against US Amid Negotiation Efforts
The European Commission announces a new delay to trade tariffs on US goods in light of ongoing discussions.
Despite looming trade tensions, the European Union has decided to delay the implementation of retaliatory tariffs on US exports, European Commission President Ursula von der Leyen announced. Initially set to begin this Tuesday, the countermeasures responding to US President Donald Trump's earlier import taxes on steel and aluminum—affecting €21 billion worth of goods—have now been deferred until early August, following a suspension first initiated in March.
In a press conference on Sunday, von der Leyen emphasized the importance of using the additional time to work towards a negotiated solution, stating, "The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution." In light of this, she reiterated the EU's preference for diplomacy over tariffs, while ensuring that preparation for an eventual retaliation remains on the agenda.
The announcement follows Trump's recent communication threatening to impose 30% tariffs on EU imports starting August 1, warning that further retaliatory measures would provoke him to escalate tariffs beyond 30%. In a pre-recorded interview with Fox News, Trump claimed that these tariffs were yielding "hundreds of billions of dollars" in revenue.
Tomorrow, EU trade ministers are expected to convene in Brussels to strategize their response. German Finance Minister Lars Klingbeil called for "serious and solution-oriented negotiations" with the US while acknowledging the need for definitive countermeasures to protect European jobs and businesses if those talks fail. His remarks align with French President Emmanuel Macron's call for the EU to "resolutely defend European interests."
The rising tensions come amid a backdrop where the Trump administration has proposed tariff conditions on 24 nations, including EU member states. As of April, the White House trade adviser Peter Navarro aimed to finalize "90 deals in 90 days," with the two pacts already announced involving the United Kingdom and Vietnam. The ongoing negotiations could have significant impacts on global trade dynamics between the EU and the US.
In a press conference on Sunday, von der Leyen emphasized the importance of using the additional time to work towards a negotiated solution, stating, "The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution." In light of this, she reiterated the EU's preference for diplomacy over tariffs, while ensuring that preparation for an eventual retaliation remains on the agenda.
The announcement follows Trump's recent communication threatening to impose 30% tariffs on EU imports starting August 1, warning that further retaliatory measures would provoke him to escalate tariffs beyond 30%. In a pre-recorded interview with Fox News, Trump claimed that these tariffs were yielding "hundreds of billions of dollars" in revenue.
Tomorrow, EU trade ministers are expected to convene in Brussels to strategize their response. German Finance Minister Lars Klingbeil called for "serious and solution-oriented negotiations" with the US while acknowledging the need for definitive countermeasures to protect European jobs and businesses if those talks fail. His remarks align with French President Emmanuel Macron's call for the EU to "resolutely defend European interests."
The rising tensions come amid a backdrop where the Trump administration has proposed tariff conditions on 24 nations, including EU member states. As of April, the White House trade adviser Peter Navarro aimed to finalize "90 deals in 90 days," with the two pacts already announced involving the United Kingdom and Vietnam. The ongoing negotiations could have significant impacts on global trade dynamics between the EU and the US.
