EU delaying retaliatory tariffs on US goods in hopes of reaching deal by Aug 1

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16 hours ago

Brussels, Jul 13 (AP) The European Union will suspend retaliatory tariffs on US goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month. 'This is now the time for negotiations,' European Commission President Ursula von der Leyen told reporters in Brussels on Sunday, after President Donald Trump sent a letter announcing new tariffs of 30 per cent on goods from the EU and Mexico starting Aug 1. The EU — America's biggest trading partner and the world's largest trading bloc — had been scheduled to impose 'countermeasures' starting Monday at midnight Brussels time (6 pm EDT; 22:00 GMT). The EU negotiates trade deals on behalf of its 27 member countries. Von der Leyen said those countermeasures would be delayed until Aug 1, and that Trump's letter shows 'that we have until the first of August' to negotiate. 'We have always been clear that we prefer a negotiated solution,' she said. If they can't reach a deal, she said that 'we will continue to prepare countermeasures so we are fully prepared.' Europe's biggest exports to the US are pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits. Italian Foreign Minister Antonio Tajani was heading to Washington for talks Monday with the US administration and Congress. In a statement, Tajani's office said that in his talks with EU allies before the meetings, he stressed the need to 'negotiate with one's head held high.' The right-wing government of Premier Giorgia Meloni, the only EU leader to attend Trump's inauguration, has sought to position itself as a ' bridge' between Brussels and Washington. Trump has said his global tariffs would set the foundation for reviving a US economy that he claims has been ripped off by other nations for decades. Trump in his letter to the EU said the US trade deficit was a national security threat. US trade partners — and companies around the world from French winemakers to German carmakers — have faced months of uncertainty and on-and-off threats from Trump to impose tariffs, with deadlines sometimes extended or changed. The tariffs could have ramifications for nearly every aspect of the global economy. The value of EU-US trade in goods and services amounted to 1.7 trillion euros (USD 2 trillion) in 2024, or an average of 4.6 billion euros a day, according to EU statistics agency Eurostat. Trade ministers from EU countries are scheduled to meet Monday to discuss trade relations with the US, as well as with China. Speaking alongside Indonesian President Prabowo Subianto, von der Leyen said the trade tensions with the US show the importance of 'diversifying our trade relationships.' Announcing closer cooperation between the EU and Indonesia, she stressed the need for 'predictable' trading partnerships based on 'trust.'
The Indonesian leader said, 'I think the United States will be always a very important leader in the world,' but also stressed the need for multilateral relationships, adding, 'We would like to see a very strong Europe.' (AP) RD.
(This story has not been edited by TIMEBUSINESSNEWS and is auto-generated from PTI)
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