EU delays counter-tariffs on US amid trade talks extension

The European Union has announced a delay in the implementation of its planned trade countermeasures against the United States, extending the suspension from July 14 to early August in a bid to allow more time for negotiations with Washington.

European Commission President Ursula von der Leyen made the announcement at a news conference in Brussels on July 13, following a formal letter from the US warning of fresh tariffs on European exports, Caliber.Az reports via foreign media.

The United States has threatened to impose a 30% tariff on a wide range of European goods starting August 1 if the two sides fail to reach a trade agreement. In response, von der Leyen confirmed that the EU will extend the suspension of its own countermeasures, originally scheduled to expire on July 14.

“We will therefore also extend the suspension of our countermeasures till early August,” von der Leyen said. “At the same time, we will continue to prepare further countermeasures so we are fully prepared.”

She reiterated the EU’s preference for diplomacy over confrontation: “We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now till the 1st of August to negotiate.”

The transatlantic trade dispute escalated earlier this year after the United States, under President Donald Trump, imposed a 25% tariff on all steel and aluminium imports, including those from the EU. In retaliation, Brussels drafted a list of countermeasures targeting US exports worth €21 billion ($25 billion), which it had temporarily suspended until July 14.

However, von der Leyen confirmed that the bloc is not standing idle, having “developed a second potential list of countermeasures” in case negotiations fail to yield results. She also noted the EU’s broader efforts to diversify its global trade partnerships, pointing to the recent free trade agreement with Indonesia as a “big and important” step.

The EU and the US remain each other’s largest trading partners, with nearly $976 billion in goods exchanged in 2024, according to the Office of the United States Trade Representative.

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” von der Leyen stated on July 12, underscoring the bloc’s commitment to a rules-based international trading system.

While the latest move offers a temporary reprieve from escalating trade tensions, both sides now face a tight window to resolve their differences before the August 1 deadline.