EU delaying retaliation to US tariffs – von der Leyen
Brussels will delay countermeasures against US tariffs until early August, European Commission President Ursula von der Leyen has announced. She stressed that the EU aims to negotiate a trade solution with its transatlantic partner.
On Saturday, US President Donald Trump unveiled plans to impose additional 30% tariffs on goods from the EU and Mexico, as part of his broader effort to address trade imbalances with key partners. Scheduled to take effect on August 1, these tariffs would be applied on top of existing sector-specific duties, such as the blanket 25% on steel, aluminum, and car imports introduced earlier this year.
On Sunday, von der Leyen confirmed that talks are ongoing with the White House following Washington’s tariff announcement.
“We will therefore extend the suspension of our countermeasures until early August. At the same time, we will continue preparing further countermeasures to ensure we are always ready,” she said.
The first package of EU countermeasures targeting approximately $25 billion worth of US steel and aluminum imports was suspended in April for 90 days to facilitate trade discussions. This suspension was set to expire on Monday.
Von der Leyen has warned that the newly announced US tariffs will disrupt vital transatlantic supply chains, adversely affecting businesses and consumers on both sides of the Atlantic.
The EU is among the US' largest trading partners. However, years of substantial imports from the bloc, especially of machinery, automobiles, pharmaceuticals, and luxury goods, have contributed to a significant trade gap. In 2024, the US trade deficit with the EU reached over $235 billion.
Trump has accused the EU of unfair trade practices, attributing the trade imbalance to the bloc’s complex regulatory framework. He has claimed the EU is maintaining “trade barriers, VAT taxes, excessive corporate penalties, non-monetary trade restrictions, currency manipulation, and unjustified lawsuits against American companies.”
Trump campaigned on an ‘America First’ agenda and cutting the US trade deficit. Since taking office, he has imposed tariffs on China, the EU, Canada, Mexico, and dozens of other trade partners, straining relations with key US allies.
