POLITICO - July 13, 2025 3:34 pm CET By Gabriel Gavin, Camille Gijs and Douglas Busvine - EU pulls US trade war countermeasures in hope of a tariff deal — for now Even as it holds its fire, Brussels will pitch retaliatory tariffs targeting another €72B in U.S. goods to EU ministers on Monday.

 POLITICO

EU pulls US trade war countermeasures in hope of a tariff deal — for now

Even as it holds its fire, Brussels will pitch retaliatory tariffs targeting another €72B in U.S. goods to EU ministers on Monday.

Plenary session of the European Parliament

Ursula von der Leyen said negotiations with Washington were underway after the White House confirmed it would hike tariffs on imports from the EU starting Aug. 1. | Philipp von Ditfurth/picture alliance via Getty Images

July 13, 2025 3:34 pm CET

By Gabriel Gavin, Camille Gijs and Douglas Busvine

BRUSSELS — Hard-hitting penalties on American exports to the EU won’t come into force next week as planned, and instead will only be imposed if U.S. President Donald Trump makes good on his threat to apply a 30 percent tariff on the bloc.

Speaking at a press conference on Sunday, European Commission President Ursula von der Leyen said negotiations with Washington were underway after the White House confirmed it would hike tariffs on imports from the EU starting Aug. 1.

“We will therefore also extend the suspension of our countermeasures till early August and at the same time we will continue to prepare further countermeasures so we are always prepared,” she said.

European officials were blindsided by Trump’s surprise Saturday declaration that a blanket 30 percent tariff would be applied, and any additional raises the EU implemented in retaliation would be matched. Staff were called in to work at short notice and a statement refusing to rule out countermeasures was issued in von der Leyen’s name. 

The further countermeasures, or retaliatory tariffs, would target an estimated €72 billion in U.S. exports and will be presented to a meeting of EU trade ministers in Brussels on Monday, according to two EU diplomats.

“We have as you know a two-track approach. We have always been clear that we prefer a negotiated solution. This remains the case,” von der Leyen said.

Over the weekend, French President Emmanuel Macron called on Brussels to take a tougher line against the U.S. following the announcement of the tariffs. 

“It is more than ever up to the Commission to assert the Union's determination to resolutely defend European interests,” he wrote online. "In particular, this implies speeding up the preparation of credible countermeasures, by mobilising all the instruments at its disposal, including anti-coercion, if no agreement is reached by August 1st."

The countermeasures — which could affect €21 billion of U.S. products like soybeans, motorcycles and orange juice — were due to take effect from 12:01 a.m. on Tuesday. Their suspension comes after the bloc vowed it would respond following Trump’s announcement Saturday.

While the larger second package — which would target U.S. planes and cars — has been informally coordinated with key capitals, it still needs formal backing from member states to take effect.

The meeting on Monday will aim to present the new lists, while a formal vote would take place at a later stage, diplomats said.

Asked whether the EU could consider deploying its Anti-Coercion Instrument — or “trade bazooka” — to hit American banks and businesses in response, von der Leyen said the measures “were created for extraordinary situations — we are not there yet. This is very important. This is now the time for negotiations. But this also shows we are prepared for all eventual scenarios,” she said.

This article has been updated.