E.U. is delaying retaliatory tariffs on U.S.

The European Union has decided to delay its retaliatory tariffs on U.S. goods, which were set to take effect this week, until early August. This move comes in response to U.S. President Donald Trump’s announcement of a new 30% tariff on EU products, effective August 1st, and is driven by a desire to continue negotiations and avoid a full-blown trade war.

European Commission President Ursula von der Leyen stated on Sunday, July 13, 2025, that the EU would extend its suspension of countermeasures, emphasizing that “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 the 1st of August.” She also confirmed that the EU would continue to prepare further countermeasures, ensuring they are “fully prepared” should negotiations fail.

President Trump’s latest tariff threat, delivered in letters to the EU and Mexico, cites the U.S. trade deficit as a “major threat” to national security. The proposed 30% tariff would be in addition to existing tariffs, such as those on steel and aluminum. This marks a return to Trump’s aggressive trade tactics, which have caused months of uncertainty for global economies.

While the EU maintains its willingness to negotiate, European leaders have also expressed a strong sense of unity and determination to defend European interests. German Finance Minister Lars Klingbeil stated that if a fair negotiated solution is not reached, “then we must take decisive countermeasures to protect jobs and companies in Europe.”

The value of EU-U.S. trade in goods and services amounted to 1.7 trillion euros ($2 trillion) in 2024, highlighting the significant economic impact any escalating trade conflict could have. European stock markets have already seen declines following Trump’s tariff threats, with carmakers and alcohol producers particularly affected.

The EU’s current pause on retaliatory tariffs was initially set to expire on Monday, July 14, 2025. The extension to August 1st provides a window for intense diplomatic