BRUSSELS: EU chief Ursula von der Leyen announced on Sunday that the European Union will continue to hold off on retaliating against US steel and aluminium tariffs while negotiations for a broader trade agreement remain ongoing.
The decision comes after US President Donald Trump threatened to impose sweeping 30-percent tariffs on the EU if no deal is reached by August 1.
Von der Leyen stated, “The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution, so we will therefore also extend the suspension of our countermeasures until early August.”
She added that the EU remains prepared to respond if necessary, emphasising the bloc’s preference for a diplomatic resolution.
The European Commission president highlighted that the EU has consistently sought a negotiated outcome.
“We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now till August 1,“ she said.
The EU had previously prepared countermeasures worth around 21 billion euros ($24 billion) in response to US tariffs on metal imports.
However, Brussels suspended these measures in April to allow space for broader trade discussions.
EU trade ministers are set to meet in Brussels on Monday to discuss the bloc’s response to Trump’s latest threat.
German Chancellor Friedrich Merz warned that the proposed tariffs could severely impact European exporters, stating they would “hit our exporters to the core.”
French President Emmanuel Macron urged the European Commission to strengthen preparations for countermeasures, while Italian Prime Minister Giorgia Meloni cautioned against a trade war within the West, calling for a fair agreement.
Trump’s administration has faced pressure to finalise trade deals after announcing only limited agreements with Britain and Vietnam.
The EU, along with other economies, was initially set to face higher US tariffs on July 9, but the deadline was extended to August 1. - AFP
