The European Union has agreed to postpone its proposed retaliatory trade tariffs on the United States. Their plan is to push the suspension as far out as possible, ideally to early August 2023. This decision comes in direct response to a June letter by former President Donald Trump. He suggested setting 30% tariffs on all imports from the EU beginning August 1st. The negotiations to stave off an all-out trade war between the US and China, two of the world’s biggest economies, are continuing.
Ursula von der Leyen, President of the European Commission, to this announcement concerned announcing that extension. She provided this assurance at her first press conference after taking over the Administration. She announced, “The United States has sent us a letter describing steps that will be implemented if we do not find an agreed-upon resolution. Therefore, we will keep our countermeasures suspended until early August.” Alongside this, we’ll work to stay as prepared as possible for the countermeasures so that we’re ready in earnest.”
True enough—unless you understand the tariffs as a piece of a broader strategy. This strategy aims to populate with ideas and templates to spread around 24 countries and the European Union itself. The EU, representing 27 member states, is currently wading through the aftermath of these tattered trade ties. Emmanuel Macron, the President of France, has called for strengthening Europe’s ability to defend its own interests as these tensions have heated up.
Germany’s Finance Minister Lars Klingbeil expressed the need for “serious and solution-oriented negotiations” between the EU and the US. He indicated that should discussions falter, the EU would have to implement “decisive countermeasures to protect jobs and businesses in Europe.”
Trump’s previous import duties on steel and aluminum triggered an abysmal backlash—from European leaders as well. This tension created the climate for what has just happened. He added that in the case of US retaliation through new import duties, he would answer by increasing the tariffs to more than 30%.
As negotiations continue, both sides appear to be looking for a mutually beneficial resolution to settle the dispute and prevent an ugly escalation. Klingbeil remarked to the Sueddeutsche Zeitung that “our hand remains outstretched but we won’t accept just anything,” highlighting the EU’s willingness to negotiate while firmly standing their ground.