Von der Leyen puts tariff retaliation on hold as EU bets on talks with Trump
Photo: European Commission President Ursula von der Leyen (Getty Images)
European Commission President Ursula von der Leyen said the EU has developed countermeasures in response to new tariffs imposed by US President Donald Trump. However, the implementation of these measures will be suspended at least until early August, as the EU seeks to negotiate with the US, Reuters informs.
During a press briefing, von der Leyen said the EU would "continue to prepare further countermeasures so we are fully prepared." The first package of countermeasures consists of tariffs on American goods worth over €21 billion. However, it was suspended in April to allow for negotiations with the US.
A second package has been developed since May. It covers American goods worth €72 billion. The full list has not yet been approved and must be agreed upon by all EU member states.
Von der Leyen also assured that the EU will not use the "anti-coercion instrument" for now. This tool allows the bloc to take retaliatory action against third countries that exert economic pressure on EU members.
"The (anti-coercion) instrument is created for extraordinary situations, we are not there yet," the European Commission President said.
EU countermeasures may include restrictions on American goods and services entering European markets. US investments and financial markets could also be targeted, along with the introduction of strict export controls.
US tariffs on the European Union
On July 12, US President Donald Trump announced a 30% tariff on all goods imported into the US from the European Union and Mexico. This followed warnings that the US-EU trade deal was on the verge of collapse.
In response, the EU said it would continue efforts to negotiate with the US on trade. At the same time, Washington was threatened with countermeasures if it did not change its tariff policy.
