US President Donald Trump recently revealed plans for 30% tariffs on imports from the European Union.
European Commission President Ursula von der Leyen has stated that Brussels will postpone its retaliatory measures against US tariffs until early August. She emphasized the EU’s objective to negotiate a trade resolution with its transatlantic ally.
US President Donald Trump disclosed intentions on Saturday to levy further 30% tariffs on products originating from the EU and Mexico. These actions are part of his wider strategy to rectify trade disparities with significant trading partners. These new tariffs, set to be implemented on August 1, would be in addition to current sector-specific duties, including the universal 25% imposed on steel, aluminum, and vehicle imports earlier this year.
On Sunday, von der Leyen confirmed that discussions are continuing with the White House following Washington’s announcement regarding tariffs.
“Consequently, we will prolong the suspension of our retaliatory measures until early August. Simultaneously, we will persist in readying additional countermeasures to guarantee our constant preparedness,” she stated.
The initial set of EU retaliatory measures, aimed at approximately $25 billion in US steel and aluminum imports, was put on hold in April for a 90-day period to facilitate trade negotiations. This hold was due to conclude on Monday.
Von der Leyen has cautioned that the recently announced US tariffs are expected to disrupt crucial transatlantic supply chains, negatively impacting businesses and consumers across both sides of the Atlantic.
The EU stands as one of the United States’ primary trading partners. Nevertheless, considerable imports from the bloc over many years, particularly in machinery, automobiles, pharmaceuticals, and luxury items, have led to a notable trade imbalance. By 2024, the US trade deficit with the EU had surpassed $235 billion.
Trump has charged the EU with engaging in unfair trade practices, attributing the trade deficit to the bloc’s intricate regulatory structure. He has asserted that the EU is upholding “trade barriers, VAT taxes, excessive corporate penalties, non-monetary trade restrictions, currency manipulation, and unjustified lawsuits against American companies.”
Trump’s campaign focused on an ‘America First’ platform and reducing the US trade deficit. Since assuming office, he has levied tariffs on China, the EU, Canada, Mexico, and numerous other trade partners, creating tension with vital US allies.