EU Delays Tariffs, Seeks Deal Ahead US 30% Tariff Deadline

The European Union is delaying the imposition of retaliatory tariffs on American goods as it seeks to secure a last-minute trade agreement with the administration of US President Donald Trump before the August 1 deadline. EU leaders, including European Commission President Ursula von der Leyen and German Chancellor Friedrich Merz, are intensively negotiating and emphasizing their preference for a negotiated solution while preparing for countermeasures if talks fail. President Trump announced plans to impose 30 percent tariffs on a wide range of European exports starting August 1, escalating tensions after previous negotiations collapsed. German Finance Minister Lars Klingbeil warned that if a fair deal is not reached, the EU must take decisive countermeasures to protect European jobs and businesses, while also highlighting the potential damage to both the US and European economies. The EU has paused existing tariffs on US goods worth about €21 billion and is ready to implement further tariffs on approximately €70 billion worth of US trade if necessary, but hopes to avoid a broader trade conflict through continued talks. Both sides acknowledge the high stakes, with the EU being the US's largest trading partner and concerns mounting over the economic impacts of the escalating tariff threats.