BRUSSELS - The European Union has postponed the planned introduction of tough sanctions on US exports, which were due to come into force next week. The move comes in response to U.S. President Donald Trump's threat to impose a 30 percent tariff on EU imports starting Aug. 1, Politico reported.
Instead of taking immediate retaliatory measures, the EU has decided to prolong the negotiations in order to reach an agreement, while preparing for a possible escalation of the trade conflict. European Commission President Ursula von der Leyen said during a press conference on Sunday that intensive talks with Washington were under way.
"We are therefore extending the suspension of our retaliatory measures until early August, but at the same time we are continuing to prepare further steps so that we are always ready," she said. Trump's announcement on Saturday of an across-the-board 30% tariff caught the EU by surprise. Moreover, the US President warned that any retaliation from the EU would be mirrored by further tariffs. The European Commission quickly responded by convening its staff and issuing a statement in which it did not rule out the possibility of retaliatory measures.
Member States' envoys will now meet in Brussels for a trade-focused Foreign Affairs Council to discuss the way forward. Two diplomats told Politico that they are optimistic about the possibility of reaching an agreement before the 1 August deadline. "We have a two-track approach. We have always preferred a negotiated solution, and that is still the case now," stressed von der Leyen.
French President Emmanuel Macron meanwhile, called on Brussels to take a tougher stance against the US. "More than ever, it is up to the Commission to assert the Union's determination to defend European interests resolutely," he wrote on social media. He added that this includes speeding up the preparation "credible retaliatory measures" including the use of all available instruments, such as the so-called Anti-Coercion Instrument, if no agreement is reached by 1 August.
The retaliatory measures, which could affect up to 21 billion euros worth of US products - including soybeans, motorcycles and orange juice - were originally due to come into force at 00:01 on Tuesday. Their suspension comes after the EU promised to respond to Trump's announcement on Saturday.
Asked whether the EU could use its anti-coercion tool, also known as the "trade bazooka", to hit US banks and businesses, von der Leyen replied: "These tools were created for emergency situations - we are not there yet. Now it's time to negotiate. But this shows that we are prepared for all possible scenarios." The EU is thus balancing between seeking a diplomatic solution and preparing for a potential trade war that could have a significant impact on transatlantic relations.
Politico/gnews.cz - cik
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