The EU will delay plans to strike the US with 21 billion euro tariffs on annual exports to Europe on Tuesday after Donald Trump announced he would reach the bloc with a 30% tariff from August 1st.
European Commission President Ursula von der Leyen said on Sunday that the application of tariffs on 21 billion euros of US exports to the EU, including chicken, motorcycles and clothing, scheduled to take effect on July 15, will be suspended until “early August.”
“We’ve always made it clear that we prefer solutions negotiated with the US, and this is still the case,” she said.
Trump announced on Saturday that he will strike the two US closest trading partners, the EU and Mexico, with a 30% tariff starting on August 1.
European leaders are split over whether the bloc should seek a quick framework trade contract similar to the UK, or whether they should continue to negotiate in hoping to achieve better results.
A senior EU official told the FT he does not expect Trump to experience the new threat of a 30% tariff in the end.
One EU official pointed out the possible very negative reactions of US investors to such sudden measures against their major trading partners.
“We trust the market,” the authorities said.
German Prime Minister Friedrich Merz expressed his hope that a “rational” deal could occur with the United States. Speaking on the state TV ARD on Sunday, he said he spoke to von der Leyen, Macron and Trump on Friday and agreed to use the next two weeks to find a solution.
“The negotiations were already well underway,” Meltz said. “We’ve seen this in other countries. Canada and China have this kind of letter. At the end of the day there was a negotiating position, and although not always, there was usually a reasonable solution.”
German Finance Minister Lars Klingbail previously told Sudeutze Zeiton. “Now, no one doesn’t need new threats or provocations. All we need is the EU to continue serious, targeted negotiations with the United States.”
However, Klingvale warned that “decisive measures must be taken to protect European employment and businesses if fair and negotiated solutions are not reached.”
The European Commission, which implements trade policy, is consulting on a tariff package for an additional 95 billion euros import from the US, including aircraft, alcohol and food, as well as the initial list of anti-opposition.
This has already fallen to 72 billion euros, according to two diplomats after the government lobbyed to remove some sensitive products from its target list.
The two diplomats said the committee would send a second retaliation package to member states on Monday for approval.
The US applies tariffs to approximately 380 billion euros of annual imports from the EU.
Von Der Leyen said the committee would “continue to prepare” a second list of measures, but she said the block would not incite its opposition as it would allow measures against U.S. services exports, for example, by blocking businesses from public procurement contracts.
The instrument is “created for an extraordinary situation – we’re not there yet,” the committee president said, adding that “it’s time for negotiation.”
Her comments came when, after nine years of speaking, she announced a “political agreement” about a free trade agreement with Indonesia.
Transactions scheduled to be finalized in September must be ratified by member states and the European Parliament. Indonesia does not export sensitive agricultural products such as beef, so authorities are sure it will pass.
Bilateral trade in goods between the EU and Indonesia was 27.3 billion euros in 2024, with EU exports worth 9.7 billion euros and EU imports worth 17.5 billion euros.
“We are extremely pleased that we are set the right example in this time of instability and chaos,” Indonesia’s President Prabowo Subianto said.
Von Der Leyen said diversifying trade agreements is a central part of the EU’s strategy to counter Trump’s trade war.
However, some business groups and politicians have criticized von der Reyen’s approach.
Italian vice-prime minister Matteo Salvini, the leader of the party of the far-right federation, which had been entrenched in Trump’s reelection, was hit by Brussels for a mistaken negotiation.
“Trump has no reason to attack our country, but once again it’s paying the price of Germany-led Europe,” the alliance said in a statement.
Corruletti, the Italian influential agribusiness association, has also criticised Brussels’ handling of negotiations, warning that Trump’s threatening to threaten a 30% tariff rate is a “deathbow” on Italian food exports, which directly damages Italian producers, causing an estimated 2.3 billion euros.
“If tariffs are confirmed on August 1, we will be forced to be aware of the complete failure of von der Reyen’s policy,” said Ettore Prandini, president of Coldiretti.
However, on Sunday night, Italian Prime Minister Giorgia Meloni reiterated his confidence that a deal would be found to avoid a punitive 30% tariff.
“The trade war in the West will weaken us all in the face of the global challenges we face together,” Meloni said. “Europe has the economic and financial strength to advocate that argument and ensure a fair and wise agreement.”
Additional reports by Amy Casmin of Rome, Henry Foy of Brussels and Anne Sylvain Chassanny of Berlin
