EU leader postpones US tariff counterattack while seeking deal
EU aims to avoid a full‑scale trade war with the United States
Key points from Brussels
- Ursula von der Leyen announced that the European Commission will continue to suspend its retaliation against US steel and aluminium tariffs.
- EU leaders are working towards a negotiated solution that could stop a broader 30‑percent levy on a 21‑billion‑euro trade package.
- The EU will maintain its countermeasures on US goods while its preparation is underway, ensuring that it can respond swiftly if a deal fails.
- Von der Leyen emphasized that the EU is pleased with the progress made so far and will use the time available until August 1 to secure an agreement.
Trump’s new threat and its impact on negotiations
- President Donald Trump announced that the United States would impose sweeping tariffs on the 27‑nation bloc if negotiations are not concluded by August 1.
- The U.S. also targeted Mexico in its measures, raising the stakes for both Mexico and the EU.
- Despite Trump’s threat, Brussels believes that the current pause on countermeasures can preserve the momentum of discussions between Washington and Brussels.
- The EU’s temporary suspension of its retaliation was set to expire overnight Monday to Tuesday, illustrating the urgency of the situation.
European Commission’s response to US tariffs
The Commission had readied duties on US goods worth around 21 billion euros ($24 billion) in response to the metal import levies that Trump hit earlier this year.
In April, Brussels announced that it would hold off on those measures to create space for a broader trade agreement with the Trump administration.
EU leaders brace for U.S. tariff backlash after Trump’s latest pick
Ursula von der Leyen told reporters that the EU had been holding back punitive measures while it sought a trade settlement. “From the start we prepared, and we stand ready to retaliate if needed,” she said.
Meetings set for Brussels
EU trade ministers will convene Monday in Brussels to decide how hard a line to draw with Washington. The discussion will focus on the bloc’s response to President Trump’s recent tariffs and the appropriate firmness of the stance.
Germany pushes for “serious, solution‑oriented” talks
Lars Klingbeil, finance minister of Germany, explained on Sunday that negotiations with the United States must remain “serious and solution‑oriented.” He added that if talks collapse, the EU would need “decisive countermeasures” to protect jobs and businesses in Europe. “Our hand remains outstretched but we won’t accept just anything,” he told the daily newspaper Sueddeutsche Zeitung.
France calls for “resolute defence” of interests
French President Emmanuel Macron urged the European Commission – which negotiates on behalf of all EU countries – to “resolutely defend European interests.”
Trump’s sweeping tariffs threaten global markets
Since returning to the presidency in January, Trump has unleashed a wave of tariffs on allies and rivals alike, roiling financial markets and raising fears of a global economic downturn. His administration is under pressure to secure deals with trading partners after promising a flurry of agreements.
Only two agreements in place with U.S. partners
US officials have unveiled only two pacts so far: one with Britain, another with Vietnam, and a temporary drop in tit‑for‑tat duties with China.
EU tariff level set to increase later this month
The European Union, alongside dozens of other economies, had been set to see its US tariff level rise from a baseline of 10 percent on July 9, but Trump pushed back the deadline to August 1. In a letter published on Saturday, Trump cited the United States’ trade imbalance with the bloc as justification for the new 30‑percent levies.
EU levies steeper than earlier U.S. tariffs
The EU tariff is markedly steeper than the 20‑percent levy Trump had unveiled in April before hitting pause as markets went into a downturn.
