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American Focus > Blog > Economy > EU pauses trade retaliation against US after Trump’s 30% tariff threat
Economy

EU pauses trade retaliation against US after Trump’s 30% tariff threat

Last updated: July 13, 2025 1:00 pm
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EU pauses trade retaliation against US after Trump’s 30% tariff threat
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The European Union has decided to postpone its plan to impose tariffs on €21 billion worth of US exports in an effort to reach a resolution following President Donald Trump’s threat to impose 30% tariffs on the EU starting from August 1. European Commission president Ursula von der Leyen announced on Sunday that the imposition of tariffs on a range of US exports, including chicken, motorcycles, and clothing, scheduled to take effect on July 15, would be delayed until “early August” as negotiations continue.

Von der Leyen emphasized the EU’s preference for a negotiated solution with the US, stating, “We have always been clear that we prefer a negotiated solution with the US. This remains the case.” Trump’s announcement of 30% tariffs on the EU and Mexico has put pressure on European leaders to decide whether to pursue a quick trade deal similar to the UK’s or continue negotiations for a better outcome.

Despite the threats of steep tariffs, senior EU officials believe that Trump may not follow through with the 30% tariffs and view it as a tactic to intensify pressure on the EU during negotiations. German Chancellor Friedrich Merz expressed optimism about reaching a “reasonable” deal with the US, while German Finance Minister Lars Klingbeil stressed the importance of continuing serious negotiations to protect jobs and companies in Europe.

In addition to the initial list of counter-tariffs, the European Commission is considering tariffs on a further €72 billion of US imports, including aircraft, alcohol, and food, pending member states’ approval. The US already imposes tariffs on around €380 billion of annual imports from the EU. Von der Leyen confirmed that the EU would continue preparing the second list of countermeasures but would not invoke its anti-coercion instrument, designed for extraordinary situations, unless necessary.

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Amidst the trade tensions with the US, the EU announced a “political agreement” on a free trade deal with Indonesia after nine years of negotiations. The deal, expected to be finalized in September, aims to diversify the EU’s trade agreements and counter Trump’s trade war. While some business groups and politicians criticized von der Leyen’s approach, Italian Deputy Prime Minister Matteo Salvini blamed Brussels for mishandling the negotiations, expressing concerns about the impact on Italy’s food exports.

Italian Prime Minister Giorgia Meloni remains hopeful that a solution can be reached to avoid the punitive tariffs, emphasizing the need for a fair and sensible agreement to prevent a trade war within the West. As negotiations continue, the EU is focused on finding a resolution that benefits all parties involved.

TAGGED:PausesRetaliationTariffThreatTradeTrumps
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