The EU will delay its plan to hit the US with tariffs on €21bn of its annual exports to Europe on Tuesday within the hope of coming to an settlement after Donald Trump introduced that he would hit the bloc with 30 per cent tariffs from August 1.
European Fee president Ursula von der Leyen stated on Sunday that the appliance of tariffs to €21bn of annual US exports to the EU, together with rooster, bikes and garments, that have been on account of come into impact on July 15 can be suspended till “early August”.
“Now we have at all times been clear that we favor a negotiated answer with the US. This stays the case,” she stated.
Donald Trump introduced on Saturday that he would hit the EU and Mexico, two of the US’s closest buying and selling companions, with 30 per cent tariffs from August 1.
European leaders have been break up on whether or not the bloc ought to press for a fast framework commerce deal much like the UK’s or hold negotiating within the hope of attaining a greater final result.
Senior EU officers advised the FT that they didn’t count on Trump to finally undergo together with his new risk of 30 per cent tariffs, which is being broadly interpreted by Brussels as a bid by the US president to extend strain on the bloc within the remaining time left for negotiations.
One EU official pointed to the chance of a really unfavorable US investor response to such steep measures on a key buying and selling accomplice.
“We belief within the markets,” the official stated.
German chancellor Friedrich Merz expressed hope {that a} “affordable” deal could possibly be made with the US. Talking on state tv ARD on Sunday, he stated he spoke to von der Leyen, Macron and Trump on Friday and agreed to make use of the subsequent two weeks to discover a answer.
“Negotiations have been already pretty superior,” Merz stated. “Now we have seen this with different international locations — Canada and China have had letters of this type. On the finish of the day, there have been negotiating positions and there have been normally, not at all times, however normally affordable options.”
German finance minister Lars Klingbeil earlier advised Süddeutsche Zeitung. “No one wants new threats or provocations proper now. What we want is for the EU to proceed severe and focused negotiations with the US.”
Nonetheless Klingbeil warned that “if a good negotiated answer can’t be reached, then we should take decisive countermeasures to guard jobs and corporations in Europe”.
In addition to the preliminary checklist of counter-tariffs, the European Fee, which runs commerce coverage, is consulting on a package deal of tariffs on an extra €95bn of imports from the US, together with plane, alcohol and meals, which would wish member states’ approval.
This has already been lowered to €72bn, in accordance with two diplomats, after governments lobbied to take away some delicate merchandise from the goal checklist.
Two diplomats stated the fee would ship the second retaliation package deal to member states for approval on Monday.
The US is making use of tariffs on round €380bn of annual imports from the EU.
Von der Leyen stated the fee would “proceed to organize” the second checklist of countermeasures however she stated the bloc wouldn’t invoke its anti-coercion instrument, which might enable it to take measures towards US service exports, for instance by blocking corporations from public procurement contracts.
The instrument “is created for extraordinary conditions — we aren’t there but,” the fee president stated, including that “the time is for negotiations”.
Her feedback got here as she introduced a “political settlement” on a free commerce take care of Indonesia after 9 years of talks.
The deal, anticipated to be finalised in September, will have to be ratified by a weighted majority of member states and by the European parliament. Officers are assured it’s going to cross as Indonesia doesn’t export delicate agricultural merchandise corresponding to beef.
Bilateral commerce in items between the EU and Indonesia was €27.3bn in 2024, with EU exports value €9.7bn and EU imports value €17.5bn.
“I’m very pleased that on this period of instability and confusion we’re setting a proper instance,” Indonesia President Prabowo Subianto stated.
Von der Leyen stated diversifying its commerce agreements was a central a part of the EU’s technique to counter Trump’s commerce conflict.
Some enterprise teams and politicians, nevertheless, have criticised von der Leyen’s strategy.
Italian deputy prime minister Matteo Salvini, chief of the far-right League get together who had enthusiastically rooted for Trump’s re-election, lashed out at Brussels for mishandling the negotiations.
“Trump has no purpose to assault our nation however as soon as once more we’re paying the value for a German-led Europe,” the League stated in a press release.
Coldiretti, the influential Italian agribusiness affiliation, has additionally criticised Brussels’ dealing with of the negotiations, warning that Trump’s threatened 30 per cent tariff fee can be a “deathblow” to Italy’s meals exports, and trigger an estimated €2.3bn in direct damages to Italian producers.
“If the tariffs have been to be confirmed on August 1, we can’t assist however be aware the entire failure of von der Leyen’s coverage,” stated Ettore Prandini, Coldiretti president.
However Italian Prime Minister Giorgia Meloni on Sunday evening reiterated her confidence {that a} deal could possibly be discovered to avert the punitive 30 per cent tariffs.
“A commerce conflict throughout the west would weaken all of us within the face of the worldwide challenges we confront collectively,” Meloni stated. “Europe has the financial and monetary energy to claim its arguments and safe a good and wise settlement.”
Further reporting by Amy Kazmin in Rome, Henry Foy in Brussels and Anne-Sylvaine Chassany in Berlin
