Official White House photo by Shealah Craighead
EU Delays Tariffs On US Goods
The European Union has decided to delay its planned retaliatory tariffs on American goods, giving both sides until August 1 to reach a negotiated settlement and avoid a broader trade conflict.
The tariffs, which were due to take effect on July 15, targeted €21 billion worth of US exports including steel, aluminium, food products, motorcycles, and clothing. The EU’s delay follows a recent announcement by US President Donald Trump, who confirmed a 30% tariff hike on certain European and Mexican imports starting August 1.
Opportunity For Diplomatic Resolution
European Commission President Ursula von der Leyen said, “We are determined to defend European interests. But we are also committed to dialogue. This window until August 1 should be used wisely.”
EU officials said the bloc is committed to de-escalation but is fully prepared to implement stronger trade measures if discussions fail. A second wave of tariffs, reportedly worth up to €72 billion, has already been drafted as a contingency plan.
Trump’s Position And EU’s Response
President Trump, who has increased his criticism of EU trade policies, insists Europe has an unfair trade advantage. Responding to the EU’s delay, Trump said, “They want to talk now, and we’re open to that, but we won’t accept bad deals anymore.”
The EU, meanwhile, is trying to maintain unity among member states as leaders from Germany, France, Italy, and Spain weigh the political and economic impacts of escalating trade tensions. Some sectors—especially dairy, automotive, and wine—are concerned about long-term uncertainty.
Broader Trade Strategy
As part of its broader economic strategy, the EU is also expanding trade engagement with Asian partners, including ongoing talks with Indonesia and Australia, to reduce dependence on the US market.
Trade ministers from both sides are expected to continue technical discussions throughout July. While both parties have left the door open for compromise, pressure is mounting with just weeks left before the new US tariffs come into force.
