EU extends pause on tariff retaliation day after Trump threatens fresh trade measures | World News
The European Union will hold off on taking retaliatory steps against new US tariffs until early August, as it continues its efforts to resolve trade tensions with the US through dialogue, European Commission President Ursula von der Leyen told reporters on Sunday.
Announcing the extension, von der Leyen told reporters, “We have always been clear that we prefer a negotiated solution.” If they cannot reach a deal, she said, “We will continue to prepare further countermeasures so we are fully prepared,” as per news agency Reuters.
US President Donald Trump on Saturday threatened to impose a 30 per cent tariff on all goods imported from the European Union and Mexico starting August 1. This would be separate from exing duties on specific sectors, despite months of talks between the two sides.
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The EU had earlier agreed to suspend an initial package of retaliatory tariffs worth €21 billion ($24.6 billion) on US goods. These measures, in response to US tariffs on steel and aluminium, were put on hold in April for 90 days to allow time for talks. That suspension is due to end on Monday.
A second, larger package of potential countermeasures, which has been in preparation since May, would target US goods worth €72 billion, however, the full l has not yet been made public and would still need approval from EU member states.
When asked whether the EU’s Anti-Coercion Instrument might be used, von der Leyen said, “The instrument is created for extraordinary situations. We are not there yet,” Reuters reported.
The Anti-Coercion Instrument allows the EU to respond when non-EU countries try to pressure member states into changing their policies. Possible actions under the instrument could include trade restrictions, investment limits, and export controls, Reuters highlighted.
