Even though the United States announced a new round of tariffs targeting EU products, the European Union has chosen to delay the implementation of retaliatory tariffs on goods imported from the United States until early August 2025.
Following a breakdown in negotiations for a more comprehensive trade agreement, U.S. President Donald Trump declared that 30% tariffs on EU goods will go into force on August 1.
Ursula von der Leyen, president of the European Commission, clarified that the United States had issued a formal letter detailing the actions that would be taken in the absence of a negotiated resolution. In order to give more time for negotiations and prevent an instant escalation of the trade dispute, the EU has chosen to postpone its own countermeasures until early August.
In the event that negotiations fail to provide a solution, von der Leyen emphasized that the EU will not be passive and that plans for further countermeasures are being made.
If carried out, the EU’s proposed countermeasures might have an effect on US exports worth about €21 billion (US$24.5 billion). Because the EU prefers conversation over confrontation and wants a negotiated solution rather than rapid reprisal, the enforcement postponement is well-timed.
In light of Trump’s current strong position, EU trade ministers are expected to meet in Brussels to consider the bloc’s next course of action. It is still unclear, though, if the ministers would support von der Leyen’s choice to keep countermeasures suspended until the deadline of August 1 or if they will insist on a quicker reaction.
Given that both parties are bracing for the potential of a more serious trade dispute in the event that discussions fail, the current state of affairs highlights the elevated tensions in transatlantic trade relations. The EU is expressing that it is prepared to take immediate action to safeguard its economic interests if needed, even as it hopes for a settlement.
