The EU delays the application of tariffs on US products.
BRUSSELS, Belgium—The European Union will suspend retaliatory tariffs on U.S. goods that were scheduled to take effect Monday, hoping to reach a trade deal with the Trump administration by the end of the month.
“Now is the time for negotiations,” European Commission President Ursula von der Leyen told reporters in Brussels on Sunday, after President Donald Trump sent a letter announcing new 30% tariffs on EU and Mexican goods starting August 1.
A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.We will continue working towards an agreement by August 1.
At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.
The EU, the United States' largest trading partner and the world's largest trading bloc, had planned to impose "countermeasures" starting Monday at midnight Brussels time (6 p.m. EDT; 2200 GMT). The EU negotiates trade deals on behalf of its 27 member states.
Ursula von der Leyen said those countermeasures would be delayed until August 1, and that Trump's letter shows "that we have until August 1" to negotiate.
"We have always been clear that we prefer a negotiated solution," he said. If they cannot reach an agreement, he stated, "we will continue to prepare countermeasures to be fully prepared."
Europe's largest exports to the United States are pharmaceuticals, automobiles, aircraft, chemicals, medical instruments, and wines and spirits.
Italian Foreign Minister Antonio Tajani was headed to Washington for talks on Monday with the U.S. administration and Congress. In a statement, Tajani's office said that in his conversations with EU allies ahead of the meetings, he stressed the need to "negotiate with our heads held high."
The government of Italian Prime Minister Giorgia Meloni , the only EU leader to attend Trump's inauguration, has sought to position itself as a "bridge" between Brussels and Washington.
Trump has said his global tariffs would lay the groundwork for reviving a US economy that he says has been exploited by other nations for decades. In his letter to the European Union, Trump claimed the US trade deficit was a threat to national security.
U.S. trading partners and companies around the world, from French wine producers to German automakers, have faced months of uncertainty and intermittent threats from Trump to impose tariffs, with deadlines sometimes extended or modified. The tariffs could have repercussions for almost every aspect of the global economy.
Trade in goods and services between the EU and the United States is expected to reach €1.7 trillion ($2 trillion) in 2024, or an average of €4.6 billion per day, according to the EU statistics agency Eurostat.
EU trade ministers are scheduled to meet on Monday to discuss trade relations with the United States and China.
Standing alongside Indonesian President Prabowo Subianto , Ursula von der Leyen noted that trade tensions with the United States demonstrate the importance of "diversifying our trade relations." Announcing closer cooperation between the EU and Indonesia, she stressed the need for "predictable" trade partnerships based on "trust."
The Indonesian leader said, “I think the United States will always be a very important leader in the world,” but also stressed the need for multilateral relations, adding, “We would like to see a very strong Europe.”
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