EU extends pause on US trade retaliation to allow more talks

The European Union will extend its suspension of trade countermeasures against the United States until August 1

  • aiming to keep negotiations open after Trump threatened 30% tariffs on EU goods
  • European Commission President Ursula von der Leyen said the EU prefers a diplomatic resolution but is also preparing additional retaliatory tariffs
  • bloc has one active list targeting €21 billion in US exports and a second set ready for €72 billion more if needed
  • EU’s powerful anti-coercion instrument will not be triggered yet, as von der Leyen said the situation hasn't reached that level

European Commission President Ursula von der Leyen

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Talks have stalled over car and agricultural tariffs

  • EU seeking to cap farm tariffs at 10% and resisting ideas like investment-linked tariff offsets due to concerns about production shifts to the US
  • Negotiators are now focusing on car tariff negotiations as a possible path forward

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German Chancellor Friedrich Merz warned that a 30% US tariff would deeply impact Germany’s economy.

This article was written by Eamonn Sheridan at www.forexlive.com.

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