EU Postpones U.S. Tariffs as Hopes Rise for Trade Deal Before Trump’s Deadline
The EU has delayed retaliatory tariffs on U.S. goods, aiming to ease trade tensions.
Talks continue as Trump’s August 1 deadline for new duties on European exports looms.
The European Union has announced a temporary delay in imposing retaliatory tariffs on U.S. goods as both sides move to avoid a deepening trade conflict ahead of President Donald Trump’s 1st of August deadline for new duties on European exports.
European Commission President Ursula von der Leyen confirmed the development during a press briefing in Brussels on Sunday, emphasizing that the EU remains committed to finding a diplomatic resolution to the ongoing tensions.
“We have always been very clear that we prefer a negotiated solution,” von der Leyen said. “This remains the case, and we will use the time that we have now until the 1st of August. At the same time, we will continue to prepare for the countermeasures, so we’re fully prepared.”
The EU had initially planned to implement 26 billion euros (approximately $30 billion) in counter-tariffs on U.S. exports, a response to Washington’s earlier decision to raise duties on steel and aluminium imports from the bloc. That plan was put on hold in April for a 90-day period, which was set to expire on Monday.
The decision to pause again follows Trump’s announcement on Saturday that his administration would move forward with a 30 per cent tariff on a range of European and Mexican exports starting the 1st of August unless new trade terms are agreed upon.
The announcement signals growing urgency on both sides to strike a last-minute deal and prevent further economic strain. EU trade ministers are scheduled to meet in Brussels on Monday to review their strategy and assess the potential impacts of any new tariffs.
White House Economic Adviser Kevin Hassett, speaking on ABC’s This Week, said President Trump was dissatisfied with the progress made by trade negotiators. “These tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett said. “But, you know, conversations are ongoing, and we’ll see where the dust settles.”
Trump’s administration has insisted on what it calls “reciprocal tariffs,” which it claims will protect U.S. industries from unfair trading practices. However, European officials argue that such measures undermine multilateral trade systems and risk sparking a full-scale trade war.
The EU is the United States’ largest trading partner when considered collectively. In 2024, trade in goods and services between the U.S. and EU totaled approximately €1.7 trillion (around $2 trillion), according to Eurostat.
Analysts say that while both sides are eager to avoid further escalation, negotiations remain delicate. Any new tariffs could disrupt key industries, including automotive, machinery, and agricultural products, all of which are heavily involved in transatlantic trade.