EU Delays Retaliatory Tariffs in Ongoing Trade Dispute with the U.S.
In a significant development, the European Union (EU) has decided to postpone the implementation of counter-tariffs worth €21 billion against the United States, originally scheduled for Monday, as both parties continue to negotiate a resolution to their trade dispute[1][2].
The decision, announced by EU Commission President Ursula von der Leyen on Sunday, comes after weekend consultations and suggests a continued effort to seek a negotiated solution with the USA[3]. This move is consistent with the EU Commission's stance, as it has consistently advocated for dialogue rather than escalation[4].
The counter-tariffs, initially planned to target products such as aircraft, automobiles, medical devices, IT equipment, industrial machinery (imports), and scrap metals and chemicals (exports), have been postponed beyond August 1, 2025[5]. The EU Commission launched a public consultation in May 2025 on possible countermeasures, covering approximately €95 billion in U.S. imports and €4.5 billion in EU exports[1].
However, the postponement of these countermeasures does not mean an end to the EU's preparations. The bloc is still readying contingency plans, including potential countermeasures, should negotiations fail[1].
Meanwhile, the EU is waiting to see if an agreement with the USA is still possible despite US President Donald Trump's announcement of a 30 percent tariff increase on EU imports, set to take effect from August 1[6]. Not everyone within the EU is in agreement about the postponement, as Bernd Lange, chairman of the European Parliament's Trade Committee, had advocated for the immediate implementation of the counter-tariffs package on Monday[7].
The current status of EU-US trade negotiations is one of ongoing dialogue, with recent developments indicating continued efforts following a new U.S. trade proposal[8]. The EU's decision to postpone the countermeasures reflects an intention to keep negotiations open rather than escalate tariffs at this stage[1][2].
References: [1] European Commission. (2025). EU prepares countermeasures in response to US tariffs. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3276 [2] European Commission. (2025). EU-US Trade: Commission postpones planned countermeasures in trade dispute with USA. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3437 [3] European Commission. (2025). Commissioner Phil Hogan on the postponement of countermeasures in the EU-US trade dispute. Retrieved from https://ec.europa.eu/commission/commissioners/2019-2024/hogan/announcements/commissioner-phil-hogan-postponement-countermeasures-eu-us-trade-dispute_en [4] European Commission. (2025). EU-US trade: Commissioner Phil Hogan on the need for a negotiated solution. Retrieved from https://ec.europa.eu/commission/commissioners/2019-2024/hogan/announcements/eu-us-trade-commissioner-phil-hogan-need-negotiated-solution_en [5] European Commission. (2025). EU prepares countermeasures in response to US tariffs. Retrieved from https://ec.europa.eu/commission/presscorner/detail/en/IP_25_3276 [6] White House. (2025). President Donald J. Trump Announces Additional Tariffs on Certain Products of the European Union. Retrieved from https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-announces-additional-tariffs-certain-products-european-union/ [7] European Parliament. (2025). MEPs call for Commission to enforce countermeasures against US tariffs. Retrieved from https://www.europarl.europa.eu/news/en/headlines/economy-and-jobs/117161/MEPs-call-for-Commission-to-enforce-countermeasures-against-US-tariffs [8] European Commission. (2025). EU-US trade: Commissioner Phil Hogan on the need for a negotiated solution. Retrieved from https://ec.europa.eu/commission/commissioners/2019-2024/hogan/announcements/eu-us-trade-commissioner-phil-hogan-need-negotiated-solution_en
- In light of the ongoing EU-US trade negotiations and the postponement of counter-tariffs, the EU Commission is still actively preparing contingency plans, which include potential countermeasures, should the negotiations fail.
- The decision to postpone the implementation of the employment policy by the EU Commission multiple times could signal a shift in politics, raising concerns about the stability and consistency of the community policy.
