EU, US Trade Tensions Escalate Amid Tariff Threats
As U.S. President Donald Trump threatens to impose a 30% tariff on European imports, the EU extends its suspension of countermeasures, seeking a negotiated settlement. With internal disagreements on retaliatory actions, EU leaders face pressure to protect their economies amid escalating trade tensions.
The European Union has announced an extension of its suspension of countermeasures against U.S. tariffs until early August, while continuing efforts to reach a negotiated settlement. This comes in response to President Donald Trump's declaration of a 30% tariff on EU and Mexican imports starting August 1.
White House Economic Adviser Kevin Hassett emphasized the seriousness of the tariffs, indicating that current trade deal offers were insufficient for the President. EU leaders, including Ursula von der Leyen and German Chancellor Friedrich Merz, advocate for diplomacy while preparing potential retaliatory actions.
Despite internal disagreements, especially between Germany and France, the EU remains focused on defending its economic interests. With looming tariff threats, the bloc faces a daunting task of maintaining unity and securing favorable trade terms with the U.S. amidst growing global trade tensions.
(With inputs from agencies.)
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