EU delays US trade countermeasures until August: Von der Leyen
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With the delay, the European Union aims to resolve issues over US tariffs on steel and aluminum.
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European Commission president Ursula von der Leyen delivers her speech during a statement on the preparation for the EU–China Summit, Tuesday, July 8, 2025, at the European Parliament in Strasbourg, eastern France (AP)
The EU has decided to prolong its suspension of countermeasures against US tariffs until the beginning of August, as European Commission President Ursula von der Leyen announced on Sunday, to reach a negotiated resolution on trade issues between the European Union and the United States.
Von der Leyen stated that the EU would extend its pause on retaliatory measures while also preparing additional countermeasures to ensure full readiness, as she addressed reporters on Sunday.
In April, the EU initially suspended its first package of retaliatory measures, targeting €21 billion ($24.6 billion) worth of US goods, in response to US tariffs on steel and aluminum, granting a 90-day window for negotiations, with the pause originally set to end on Monday.
Since May, the EU has been developing a second set of countermeasures that would apply to €72 billion worth of US goods, though these measures remain undisclosed and pending formal approval from member states before being finalized.
Von der Leyen further clarified that the EU’s Anti-Coercion Instrument was not currently being considered, emphasizing, "The (anti-coercion) instrument is created for extraordinary situations, we are not there yet."
The Anti-Coercion Instrument enables the EU to respond to third countries that attempt to influence member states' policies through economic pressure, with potential countermeasures including limitations on market access for goods and services, as well as other economic actions in areas such as foreign direct investment, financial markets, and export controls.
Trump announces 30% tariffs to hit EU, other allies on Aug. 1
On Saturday, US President Donald Trump declared that a 30% tariff would be imposed on major trading partners, including Mexico and the European Union, beginning next month, intensifying tensions in his administration's prolonged trade conflicts.
In separate announcements posted on his Truth Social platform, Trump revealed plans to implement new tariffs starting August 1, justifying the measures by pointing to Mexico's purported involvement in drug trafficking into the US and what he described as an unfair trade relationship with the European Union.
The announced tariffs represent an increase from the previous 25% duties on Mexican goods implemented earlier this year, with exemptions maintained for products traded under the USMCA framework, while Canada was separately notified of impending 35% tariffs on its exports through a parallel communication.
EU, Canada tighten alliance amid Trump threat
As a result of Trump's tariff bombardment, Canada is strengthening its strategic partnership with the European Union to offset what it perceives as a declining US commitment to trade cooperation.
During a joint press conference in Ottawa on July 11, Canadian Minister of Industry Mélanie Joly emphasized that Canada is collaborating closely with the European Union to protect open markets and strengthen economic independence.
"As other countries make sovereign decisions in terms of international trade, we [Canada-EU] further align ourselves. And we reaffirm the strength of free trade between us and our businesses," Joly said in French.
