The European Union announced Sunday it will hold off on enforcing retaliatory tariffs against U.S. goods, which were slated to go into effect on Monday, as Brussels pursues a trade agreement with the Trump administration by month’s end.
European Commission President Ursula von der Leyen said at a press conference in Brussels that this will be the time for a negotiation. Her remarks came shortly after U.S. President Donald Trump issued a letter detailing plans to impose 30% tariffs on EU and Mexican imports beginning August 1.
Ordinarily, the EU – the United States’ largest trading partner and the globe’s leading trading bloc – negotiates on trade matters for all 27 member states. The bloc had prepared to enact its own “countermeasures” against the U.S. at midnight Brussels time on Monday.
Key EU exports to America include pharmaceuticals, aircraft, automobiles, medical equipment, chemicals, and alcoholic beverages such as wine and spirits.
In response to Washington’s expanding tariff threats, the European Union is intensifying its outreach to other affected countries, such as Canada and Japan, sources familiar with the internal discussions indicated. The bloc is considering stronger cooperation with these nations to coordinate strategies in dealing with U.S. trade actions, the sources added, speaking anonymously because the talks are private.
Negotiations between Washington and Brussels remain stalled over several crucial topics, including automotive trade and agricultural tariff levels, even as pressure mounts to resolve the dispute.
