The EU is delaying retaliatory tariffs on U.S. goods, in hopes of reaching a deal by Aug. 1
Jul 13, 2025, 5:21 AM
FILE - European Commissioner for Trade and Economic Security Maros Sefcovic, right, speaks with European Commission President Ursula von der Leyen, during the weekly meeting of the College of Commissioners at EU headquarters in Brussels, April 9, 2025. (AP Photo/Omar Havana, File)
Credit: ASSOCIATED PRESS
(AP Photo/Omar Havana, File)
BRUSSELS (AP) 鈥� The EU will suspend retaliatory tariffs on U.S. goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month.
鈥砊his is now the time for negotiations,鈥� European Commission President Ursula von der Leyen told reporters in Brussels on Sunday, after President Donald Trump sent a letter announcing new tariffs of 30% on goods from the EU and Mexico starting Aug. 1.
The EU 鈥� America鈥檚 biggest trading partner and the world鈥檚 largest trading bloc 鈥� had been scheduled to impose 鈥砪ountermeasures鈥� starting Monday at midnight Brussels time (6 p.m. EDT). The EU negotiates trade deals on behalf of its 27 member countries.
Von der Leyen said those countermeasures would be delayed until Aug. 1, and that Trump’s letter shows 鈥硉hat we have until the first of August鈥� to negotiate. European leaders have urged Trump and von der Leyen to give negotiations more time.
鈥砏e have always been clear that we prefer a negotiated solution,鈥� she said. If they can鈥檛 reach a deal, she said that 鈥硍e will continue to prepare countermeasures so we are fully prepared.鈥�
Standing alongside Indonesian President Prabowo Subianto, von der Leyen said the trade tensions with the U.S. show the importance of 鈥樷�檇iversifying our trade relationships.”
Trump has said his global tariffs would set the foundation for reviving a U.S. economy that he claims has been ripped off by other nations for decades. Trump in his letter to the European Union said the U.S. trade deficit was a national security threat.
U.S. trade partners have faced months of uncertainty and on-and-off threats from Trump to impose tariffs, with deadlines sometimes extended or changed. The tariffs could have ramifications for nearly every aspect of the global economy.
The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat. Europe鈥檚 biggest exports to the U.S. were pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits.
Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the U.S., as well as with China.
