EU Freezes Tariffs as Clock Ticks on Trump’s Trade Ultimatum

The European Union has announced a delay in the implementation of retaliatory tariffs on American exports, signaling its intent to pursue a trade agreement with Washington before an August 1 deadline set by U.S. President Donald Trump.

Speaking at a press conference in Brussels on Sunday, European Commission President Ursula von der Leyen confirmed that the EU would extend its freeze on countermeasures, allowing more time for dialogue with U.S. officials.

However, she emphasized that preparations for potential retaliatory actions would continue in parallel.

“We are maintaining our readiness to act if necessary,” von der Leyen said.

“But our preference has always been a negotiated outcome, and that remains our goal.

“We will use the remaining time before August 1 to try and achieve that.”

The EU’s decision follows Trump’s recent announcement that a 30 percent tariff would be imposed on a range of European and Mexican exports starting August 1, unless a new trade arrangement is reached.

This move has added urgency to ongoing transatlantic negotiations.

Back in March, the EU had unveiled plans to impose retaliatory duties on €26 billion ($30 billion) worth of U.S. goods.

These measures were in response to Trump’s earlier imposition of tariffs on European steel and aluminum imports.

In April, however, the EU agreed to suspend its planned tariffs for 90 days after Trump signaled a temporary hold on his so-called “reciprocal tariffs.”

That 90-day pause was set to expire at midnight on Monday, but the latest announcement from Brussels now extends the suspension, providing negotiators more breathing room.

EU trade ministers are set to gather on Monday to explore possible responses to Trump’s latest tariff threats and assess the bloc’s strategy going forward.

The situation remains tense, with both sides wary of the economic and political fallout a tariff war could bring.

From the U.S. side, White House economic adviser Kevin Hassett indicated that President Trump is dissatisfied with the proposals he has received from key trade partners, including the EU.

During an appearance on ABC News’s This Week, Hassett remarked, “These tariffs are not just bluster.

If the president doesn’t see an acceptable deal, they will take effect.

The current offers on the table just aren’t good enough.”

While negotiations continue, the potential for an escalation in trade tensions has unsettled markets and raised concerns among industries on both sides of the Atlantic that rely on open trade.

The stakes are high.

According to Eurostat, the EU’s official statistics agency, trade in goods and services between the U.S. and EU totaled €1.7 trillion ($2 trillion) in 2024.

This made the transatlantic relationship the world’s most valuable trading partnership.

Any disruption could have significant global repercussions, especially in sectors like automotive, agriculture, and technology.

Despite the EU’s emphasis on diplomacy, officials in Brussels remain wary of Trump’s unpredictability on trade matters.

A series of tariff threats and reversals in recent years has strained trust between Washington and European capitals.

Some EU leaders have voiced frustration over what they see as a negotiating style based more on pressure tactics than on constructive dialogue.

Nevertheless, von der Leyen and other EU officials continue to hold out hope for a resolution.

“Our economies are deeply intertwined, and neither side benefits from confrontation,” she said.

As the deadline draws near, both sides are racing to finalize a deal that could prevent another round of damaging tariffs.

Whether a breakthrough can be achieved in the coming days remains uncertain, but the EU’s decision to delay retaliatory action signals a willingness to give diplomacy one more chance.

For now, the world’s most powerful economic alliance hangs in the balance, with August 1 looming as a decisive moment in the evolving U.S.-EU trade saga.

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