EU Holds Off on Retaliatory Tariffs as Trade Negotiations Continue with US

European Commission President Ursula von der Leyen announced on July 13 that Brussels will delay implementing retaliatory measures against US steel and aluminum tariffs in a bid to broker a trade agreement. This decision follows US President Donald Trump's announcement of potential 30% tariffs on European goods unless a deal is reached by August 1. Von der Leyen informed journalists that the European Union (EU) received a letter from the US outlining the impending measures, which are set to take effect unless a negotiated solution is found. Although the EU has suspended its countermeasures, preparations are in place, and they remain ready to respond if necessary. "The EU has always been clear that we prefer a negotiated solution, and we will use the time we have until August 1 to find one," added von der Leyen. The EU's suspension of retaliation had been initially set to expire overnight from Monday to Tuesday, but the continuing discussions have prompted Brussels to push back its response. In April, the EU had already set the stage for imposing duties on around $21 billion worth of US goods to counter the tariffs that Trump had previously imposed on metal imports earlier this year. Still, they decided to allow for more space to negotiate a broader trade agreement with the US administration. Von der Leyen reiterated that the EU has been preparing for a response from the very start, emphasizing their readiness to implement countermeasures if the negotiations fail. The ongoing tensions between the EU and the Trump administration highlight the complexities and challenges inherent in international trade relations. Related Sources: • Source 1 • Source 2