The EU’s retaliatory tariffs on U.S. exports have been delayed once again, European Commission President Ursula von der Leyen has announced. The countermeasures, originally set to commence on Tuesday, are a response to U.S. President Donald Trump‘s initial import taxes on steel and aluminium. The EU’s retaliation, which would have impacted EUR21 billion ($24.5 billion) worth of U.S. goods, was first suspended in March. This pause has now been extended until early August, von der Leyen stated at a press conference on Sunday. EU trade ministers are expected to convene in Brussels on Monday to discuss their response.
This delay follows Trump’s letter to von der Leyen, outlining plans to impose 30 percent tariffs on EU imports starting 1 August. He cautioned that if the EU retaliated with its own import duties against the U.S., he would respond by raising tariffs beyond 30 percent. In a pre-recorded interview with Fox News, which aired on Saturday night, Trump remarked that some countries were “very upset now,” yet he maintained that the tariffs meant “hundreds of billions of dollars” were “pouring in.”
Von der Leyen told journalists on Sunday: “The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution, so we will therefore also extend the suspension of our countermeasures until early August. At the same time, we will continue to prepare for the countermeasures so we’re fully prepared.” She emphasized that the EU has “always been very clear that we prefer a negotiated solution,” reiterating, “This remains the case, and we will use the time that we have now till August 1.”
Target of 90 deals in 90 days
EU trade ministers are set to meet on Monday in Brussels to determine their stance toward Washington. Germany’s finance minister Lars Klingbeil stated on Sunday that “serious and solution-oriented negotiations” with the U.S. were still essential, but added that if negotiations fail, the EU would need “decisive countermeasures to protect jobs and businesses in Europe.” “Our hand remains outstretched but we won’t accept just anything,” Klingbeil told the daily newspaper Sueddeutsche Zeitung. His comments followed French President Emmanuel Macron’s Saturday appeal to the European Commission, which negotiates on behalf of all EU countries, to “resolutely defend European interests.”
As of Saturday, the Trump administration has proposed tariff conditions on 24 countries and the EU, which consists of 27 countries. On 12 April, White House trade adviser Peter Navarro set a target to secure “90 deals in 90 days.” So far, the president has announced the outlines of two such agreements with the United Kingdom and Vietnam, while negotiations with others are ongoing. Last week, Trump issued new tariff announcements for more than 20 countries, including Japan, South Korea, Canada, and Brazil, as well as a 50 percent tariff on copper.
These duties exceed the 25 percent levy Trump imposed on Mexican goods earlier this year, although products entering the U.S. under the U.S.-Mexico-Canada Agreement are exempt. The EU tariff is also significantly higher than the 20 percent tax Trump announced in April. The EU’s Anti-Coercion Instrument allows the bloc to retaliate against third countries that exert economic pressure on EU members to alter their policies. Its measures include restrictions on access to public procurement tenders.
Germany advocates for swift deal
EU states, along with numerous other economies, were set to see their U.S. tariff level rise from a baseline of 10 percent on Wednesday, but Trump delayed the deadline just days before the elevated rates were scheduled to take effect, pushing it back to August 1. The 27-country bloc faces conflicting pressures as powerhouse Germany calls for a swift deal to protect its industry, while other EU members, such as France, assert that EU negotiators should not concede to a one-sided agreement that solely benefits the U.S.
The Mexican government, meanwhile, indicated it was informed during high-level discussions with U.S. State Department officials last Friday that the Trump letter was forthcoming. The delegation conveyed to Trump officials at the meeting that it disagreed with the decision and viewed it as “unfair treatment,” according to a statement from the Mexican government.
Mexico is one of the countries most at risk from the U.S. leader’s tariffs, with 80 percent of its exports destined for its northern neighbor. Canada has also received a similar letter from Trump, proposing 35 percent tariffs on its goods. Trump has threatened to impose a 50 percent tariff on goods produced in Brazil, in retaliation for what he termed the “witch-hunt” trial against his far-right ally, former President Jair Bolsonaro, who is facing prosecution over his alleged involvement in a plot to overturn the country’s 2022 election.
