The European Union has pushed back its scheduled tariffs on American goods once again. The tariffs were originally intended to be a reaction to American tariffs on steel and aluminum, but now they will be delayed until the beginning of August.
The announcement came from European Commission President Ursula von der Leyen on Sunday. She said the EU still wants to reach a deal with the U.S. before taking any further action. “We’ve always preferred to talk things through instead of jumping to punishments,” von der Leyen said during a press conference in Brussels.
The EU had intended to target $21 billion of US products with higher tariffs. That action was first put on hold in March to leave room for negotiations. Now, that hold is being put on again.
Trump’s New Threat Raises the Stakes
Tensions escalated after President Donald Trump announced that he would impose 30% tariffs on EU imports from August 1. He threatened that if the EU retaliates, he’ll increase the tariffs further.
During a TV interview broadcasted on Saturday evening, Trump justified his move. He asserted that the tariffs already generated “hundreds of billions of dollars” for America’s economy.
But EU leaders are not about to give in either. French President Emmanuel Macron has called on the European Commission to defend the interests of European workers and businesses. Germany’s Finance Minister Lars Klingbeil said the EU remains willing to negotiate but will not settle for unequal terms. “Our hand is extended, but that does not mean we will agree to everything,” he told a newspaper.
Decisions Ahead
EU trade ministers are gathering in Brussels on Monday to discuss how firm their response can be. They hope to reach an agreement before the deadline of August. But they’re also preparing themselves to act if negotiations fall through.
Meanwhile, Trump has written letters to over 20 other nations with similar trade threats. The UK and Vietnam, so far, have achieved early headway on deals.
Without an agreement, both the EU and the U.S. may endure another cycle of trade woes, something that could affect prices, jobs, and companies on both sides of the Atlantic.
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