The European Union is trying to explore and strengthen its collaborations with global partners in response to escalating US trade threats, as President Donald Trump signals a 30% tariff on EU exports starting August 1. These nations include Canada, Japan, and Mexico. The EU is planning to work on new opportunities and trade strategies with these nations.
The new tariff letter to European Union from President Trump was published on July 13. The following communication has renewed urgency within Brussels to finalize a resolution or implement countermeasures.
EU Extends Suspension of Countermeasures, But Prepares Backup
European Commission President Ursula von der Leyen announced Sunday that the EU will extend its suspension of retaliatory tariffs until August 1 to allow further negotiations. These countermeasures, originally introduced in response to prior US tariffs on steel and aluminum, were due to resume at midnight on Tuesday.
Von der Leyen stated that while the EU continues to seek a “negotiated solution,” additional countermeasures targeting up to €72 billion ($78 billion) in US goods are ready and could be presented to member states this week. However, she clarified that the EU’s anti-coercion instrument (ACI) will not be triggered at this stage.
Trade Talks Intensify as EU Seeks Sectoral Relief
Negotiators are currently focused on lowering tariffs for cars and securing exemptions for industries such as aviation, medical devices, and spirits.
According to Bloomberg, the US has proposed a 17% tariff on EU agricultural products, with discussions also covering non-tariff barriers and strategic cooperation.
German Chancellor Friedrich Merz warned that 30% tariffs would severely impact European exporters and called for EU unity and direct engagement with the US. French President Emmanuel Macron urged accelerated preparations for credible countermeasures, including potential use of the ACI if talks collapse.
Further negotiations are expected to continue throughout the week.
Also Read: Trump Slaps 30% Tariffs On EU And Mexico, But Who Really Pays The Price?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
