E.U. Postpones Tariffs on U.S. Goods, Aiming for Deal by August 1st

BRUSSELS — The European Union has decided to suspend retaliatory tariffs on U.S. goods that were set to take effect on Monday. This move aims to facilitate negotiations with the Trump administration in hopes of reaching a trade deal by the end of the month. European Commission President Ursula von der Leyen announced this decision during a press conference in Brussels following President Donald Trump’s letter outlining new tariffs of 30% on goods from the EU and Mexico starting August 1. The EU, which is America’s largest trading partner and the world’s largest trading bloc, was prepared to impose countermeasures starting at midnight on Monday.

However, Von der Leyen emphasized that these countermeasures will be delayed until August 1, providing a window for negotiation. She reaffirmed the EU’s preference for a negotiated solution and indicated that should a deal not be reached, the EU will remain prepared with its countermeasures. Among Europe’s primary exports to the U.S. are pharmaceuticals, cars, aircraft, chemicals, and wines. Italian Foreign Minister Antonio Tajani is set to engage in discussions with the U.S. administration and Congress as part of this effort.

In his remarks, Tajani highlighted the importance of negotiating confidently with partners. The Italian government, led by Premier Giorgia Meloni, aims to act as an intermediary between Brussels and Washington. Trump has described his global tariffs as essential for revitalizing the U.S. economy and considers the trade deficit a national security issue. Despite ongoing trade threats and shifting deadlines, the value of EU-U.S. trade in goods and services reached 1.7 trillion euros in 2024, averaging 4.6 billion euros daily.

As the EU trade ministers convene to discuss their relations with the U.S. and China, Von der Leyen stressed the importance of diversifying trade relationships during a meeting with Indonesian President Prabowo Subianto. He echoed the sentiment, underscoring the need for compelling multilateral relationships alongside strong ties with the U.S.