The European Union has once again postponed its planned retaliatory tariffs on U.S. goods, signaling a temporary de-escalation in the ongoing trade dispute with Washington. European Commission President Ursula von der Leyen confirmed on Sunday that the €21 billion countermeasures, initially set to take effect this Tuesday, will be suspended until early August.
The tariffs were originally introduced in response to former President Donald Trump’s earlier decision to impose duties on EU steel and aluminum. While the EU had already paused the implementation of its response in March, the latest extension comes following renewed threats from Trump, who has now proposed a sweeping 30% tariff on EU imports beginning August 1.
In a letter to von der Leyen, Trump warned that any EU retaliation would trigger an even steeper tariff increase beyond the 30% threshold. The former president, in a Fox News interview aired Saturday, defended the tariffs as a major revenue source, claiming they were bringing in “hundreds of billions of dollars.”
Von der Leyen emphasized the EU’s preference for dialogue over confrontation, stating, “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.”
Despite this stance, she also made clear that the bloc is preparing to implement countermeasures if negotiations collapse.
EU trade ministers are scheduled to meet in Brussels on Monday to map out a unified strategy. German Finance Minister Lars Klingbeil echoed the need for “serious and solution-oriented negotiations,” but warned that the EU must be ready to act decisively to protect European industries and jobs if diplomacy fails.
French President Emmanuel Macron added pressure on the Commission, calling for it to “resolutely defend European interests.”
The Trump administration’s aggressive trade agenda now includes proposed tariff frameworks against 24 countries and the EU, which comprises 27 member states. With a goal of “90 trade deals in 90 days,” Trump has so far outlined agreements with the UK and Vietnam, while talks with other partners remain ongoing.
As the August 1 deadline approaches, all eyes will be on Brussels and Washington to see whether compromise or confrontation will define the next chapter in transatlantic trade relations.
