European Commission President Ursula von der Leyen announced that the European Union is once again suspending retaliatory tariffs on American goods, scheduled to take effect on Monday, in an effort to reach a trade deal with the Trump administration. After US President Donald Trump sent a letter announcing the latest tariffs of 30% on goods from Mexico and the EU starting August 1, Von der Leyen told reporters on Sunday that this is now the time for talks. The taxes target the steel and aluminum that the US imports from the European Union, which is America’s largest trading partner.
The EU counter-tariff move would have affected €21bn worth of American goods, initially suspended in March, and now it is the second time officials have announced a delay. European Union trade ministers are scheduled to meet in Brussels today to discuss how to respond to the Trump administration’s aggressive tariff measures. Trump warned that if the trade partner retaliated with import duties of their own against the United States, he would hit back by escalating tariffs more than 30%.
On Sunday, Von der Leyen told journalists that the US has sent a letter with measures that would take effect unless a negotiated solution is reached, so we will also extend the suspension of their countermeasures until early August. At the same time, the EU will continue to prepare for the retaliatory measures so it’s fully prepared. She insisted that the EU has always been very clear that they prefer a negotiated solution.
Trade War Will Weaken All Countries
Europe’s primary exports to the United States include pharmaceuticals, automobiles, aircraft, chemicals, medical instruments, and wine and spirits. Italian Premier Giorgia Meloni cautioned on Sunday that engaging in a trade war “would weaken all of us in confronting the global challenges collectively,” and emphasized Italy’s commitment to pursuing a fair agreement. “Europe possesses sufficient economic and financial strength to advocate for a just and pragmatic accord,” according to a statement issued by her office.
Italian Foreign Minister Antonio Tajani was scheduled to depart for Washington on Monday to conduct discussions with the United States government and Congress. The right-wing administration of Meloni, notably the sole European Union leader to attend Donald Trump’s inauguration, has endeavored to position itself as a “bridge” facilitating relations between Brussels and Washington. Trump has claimed that his implementation of global tariffs would serve as the foundation for restoring the United States’ economy.
President Trump is dissatisfied with certain preliminary trade agreements, according to Kevin Hassett, the Director of the White House National Economic Council, during an interview on ABC News Sunday. “The fundamental issue is that he has reviewed some draft proposals that Howard Lutnick and the trade team negotiated, and the President believes these agreements require further refinement. Essentially, he has established a clear stance by sending out these letters to relevant parties. We will observe the outcomes,” he stated.
Defend European Interests
Germany’s Finance Minister, Lars Klingbeil, stated on Sunday that “serious and solution-oriented negotiations” with the US are still crucial. He further emphasized that should these negotiations fail, the European Union would need to implement “decisive countermeasures to safeguard employment and commercial interests within Europe.”
“Our hand remains extended, but we will not accept concessions indiscriminately,” Klingbeil conveyed to the daily newspaper Süddeutsche Zeitung. His remarks followed French President Emmanuel Macron’s appeal on Saturday to the European Commission, which negotiates on behalf of all EU member states, to “resolutely defend European interests.”
