EU Extends Suspension of Retaliatory Tariffs Amid Tense Trade Negotiations with U.S.

The European Union will continue to hold off from implementing retaliatory measures against U.S. tariffs, extending the suspension until early August as negotiations persist. European Commission President Ursula von der Leyen emphasized the intention to find a diplomatic resolution with the United States.

The trade tension escalated after U.S. President Donald Trump threatened a 30% tariff on EU imports starting August 1. Despite extended talks, Trump's move could complicate ongoing discussions. Von der Leyen assured that the EU would prepare further countermeasures to protect its interests.

The initial package of countermeasures affecting $24.6 billion in U.S. goods was paused to allow for negotiation. A potential second package covering $72 billion in goods is under consideration but awaits member states' approval. The EU's Anti-Coercion Instrument remains unused, as current conditions do not warrant its application.

(With inputs from agencies.)