EU to keep U.S. trade countermeasures on hold until August, says von der Leyen

European Commission President Ursula von der Leyen announced on Sunday that the EU will extend its pause on retaliatory measures against U.S. tariffs until early August, in an effort to reach a negotiated trade agreement with the United States.

The move comes after U.S. President Donald Trump escalated trade tensions by threatening to impose a 30% tariff on EU imports starting August 1, in addition to existing sector-specific duties, despite months of talks.

Von der Leyen said the EU is continuing to prepare additional countermeasures to ensure readiness, should talks fail. The initial package of retaliatory tariffs, worth €21 billion ($24.6 billion) and aimed at U.S. steel and aluminium imports, was suspended in April for 90 days and had been set to expire on Monday.

A second set of measures, under development since May, targets €72 billion in U.S. goods. While the list has not been made public, it still requires approval from EU member states.

Von der Leyen also clarified that the EU’s Anti-Coercion Instrument, which allows for broader economic retaliation against countries applying pressure on EU policies, is not yet being considered. She emphasised that the instrument is reserved for “extraordinary situations,” which the EU has not yet reached.

Potential EU responses could involve limiting U.S. access to the European market, imposing restrictions on foreign investment, financial services, export controls, and other economic measures.

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