EU Extends Suspension of Tariffs Amid US Trade Threats

The European Union has extended the suspension of retaliatory tariffs against U.S. goods until early August to continue negotiations with President Donald Trump's administration, which has threatened a 30% tariff on EU imports starting August 1. European Commission President Ursula von der Leyen stressed the EU's preference for a negotiated solution while preparing countermeasures worth billions in case talks fail. The EU is also focusing on diversifying trade relationships amid the ongoing tensions, highlighting the $2 trillion trade volume between the EU and U.S. in 2024. EU trade ministers and ambassadors are actively discussing responses, with most member states supporting the delay to avoid escalating the dispute prematurely. Alongside these trade talks, von der Leyen announced a political agreement on a trade deal with Indonesia, emphasizing the importance of strengthening economic partnerships amid global uncertainties. The EU continues to seek broader trade agreements with other partners while managing the complex relationship with the U.S.