The European Union has extended its suspension of counter-tariffs on U.S. goods until early August, opting to continue negotiations despite mounting pressure from President Donald Trump. Trump announced plans to impose a 30% tariff on most imports from the EU and Mexico starting August 1, escalating trade tensions and giving partners under three weeks to reach agreements.
White House economic adviser Kevin Hassett said current trade offers are insufficient and that the tariffs will proceed unless the U.S. sees significant concessions.
European Commission President Ursula von der Leyen reaffirmed the EU’s commitment to a dual approach—pushing for a negotiated settlement while preparing retaliatory measures. The bloc has two packages of tariffs ready, targeting a total of €93 billion in U.S. goods, though the implementation remains on hold.
Italy’s Foreign Minister Antonio Tajani confirmed that a €21 billion tariff list is prepared, with a second package under consideration. He expressed hope that talks would yield progress, warning that tariffs harm both sides and calling for a zero-tariff market among North America and Europe.
German Chancellor Friedrich Merz and French President Emmanuel Macron pledged to work closely with von der Leyen to reach a resolution. However, divisions remain within the EU, with France urging a firmer stance and Germany stressing the need to protect its export-driven economy.
While EU officials said the bloc is not yet invoking its Anti-Coercion Instrument, they emphasized readiness to act decisively if talks break down. In the meantime, the EU is also accelerating trade agreements with other partners, including a new deal with Indonesia.
French dairy producers, among others, have warned of serious impacts from potential U.S. tariffs, signaling wider economic fallout if tensions continue to escalate.