European Union delaying retaliatory tariffs on US goods
Brussels: The European Union will suspend retaliatory tariffs on US goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month.
“This is now the time for negotiations,” European Commission President Ursula von der Leyen told reporters in Brussels on Sunday, after President Donald Trump sent a letter announcing new tariffs of 30 per cent on goods from the EU and Mexico starting Aug 1.
The EU — America’s biggest trading partner and the world’s largest trading bloc — had been scheduled to impose “countermeasures” starting Monday at midnight Brussels time (6 pm EDT; 22:00 GMT). The EU negotiates trade deals on behalf of its 27 member countries.
Von der Leyen said those countermeasures would be delayed until Aug 1, and that Trump’s letter shows “that we have until the first of August” to negotiate.
“We have always been clear that we prefer a negotiated solution,” she said. If they can’t reach a deal, she said that “we will continue to prepare countermeasures so we are fully prepared.”
Europe’s biggest exports to the US are pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits. Italian Foreign Minister Antonio Tajani was heading to Washington for talks Monday with the US administration and Congress. In a statement, Tajani’s office said that in his talks with EU allies before the meetings, he stressed the need to “negotiate with one’s head held high.”
The right-wing government of Premier Giorgia Meloni, the only EU leader to attend Trump’s inauguration, has sought to position itself as a “ bridge” between Brussels and Washington.
Trump has said his global tariffs would set the foundation for reviving a US economy that he claims has been ripped off by other nations for decades. Trump in his letter to the EU said the US trade deficit was a national security threat.
US trade partners — and companies around the world from French winemakers to German carmakers — have faced months of uncertainty and on-and-off threats from Trump to impose tariffs, with deadlines sometimes extended or changed. The tariffs could have ramifications for nearly every aspect of the global economy.
