European Commission President Ursula von der Leyen confirmed Sunday that the bloc will hold off on retaliatory tariffs against the United States until early August, keeping hopes for a negotiated trade deal alive, according to a report published by Reuters.
“The bloc would continue to prepare further countermeasures so we are fully prepared,” von der Leyen told reporters.
Trump Threatens New 30% Tariff
The decision comes just a day after President Donald Trump announced a fresh round of 30% tariffs on EU imports starting August 1, in addition to the existing sector-specific duties. The move appears to have flared tensions in an already fragile trade environment. Despite months of negotiations, the two sides have failed to reach a comprehensive agreement.
Suspended Countermeasures Still on the Table
The EU had paused its first wave of countermeasures in April for 90 days, targetting €21 billion ($24.6 billion) in US goods to allow more time for talks. That suspension was due to expire on Monday.
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A second package, which is being developed since May and the details of which haven’t yet been made public, could impact €72 billion worth of American imports, and would still need approval from EU member states.
Anti-Coercion Tool on Standby
Amid looming unceertainty over future trade, von der Leyen said the European Union’s Anti-Coercion Instrument — a legal tool that allows retaliation against countries that economically pressure EU members — won’t be used yet, as reported by Reuters.
“The instrument is created for extraordinary situations, we are not there yet.”
If used, the tool could allow the European bloc to impose restrictions on goods and services, foreign investment and even financial markets and export controls.
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