In response to Trump's new round of tariff threats, the EU is actively planning a "unified front" with Japan and other affected countries. Von der Leyen announced a postponement of countermeasures against the US until August 1, while leaders from Germany and France are calling for European unity.
Trump announced this past weekend that starting August 1, a 30% tariff will be imposed on the EU and Mexico.
According to informed sources, the EU is preparing to strengthen contact with other countries affected by Trump's tariff policies, such as Canada and Japan, and may discuss coordinated action plans. Due to the sensitive nature of the discussions, these individuals requested anonymity.
This move comes as the US and EU negotiations are at an impasse, with both sides stalled on key issues such as automotive tariffs and agricultural product tax rates. EU member states were informed of the latest negotiation developments last Sunday.
Earlier that day, European Commission President Von der Leyen announced an extension of the suspension period for countermeasures against the US to August 1 in order to continue negotiations. These measures were originally devised to counter the Trump administration's tariffs on steel and aluminum products.
“Meanwhile, we will continue to prepare more countermeasures to ensure complete readiness,” Von der Leyen stated to reporters in Brussels, reaffirming the EU's preference for "solving issues through negotiation."
Informed sources revealed that the current countermeasure list covers approximately €21 billion ($24.5 billion) of US goods, with an additional €72 billion value on a standby list, along with some export control measures that are expected to be submitted for member state consideration as early as Monday.
Von der Leyen clearly stated that the EU will not currently employ the "anti-coercion tool," its strongest trade weapon: "This tool is designed for extreme situations, and we have not reached that point yet."
French President Macron responded to Trump's statement on Social Media, calling for an acceleration of credible countermeasures, including anti-coercion tools, if an agreement is not reached before August 1.
German Chancellor Merz warned on Sunday night that if the trade conflict cannot be resolved through negotiation, a 30% tariff will "seriously damage" the export lifeline of Europe's largest economy. The conservative leader emphasized in an ARD television interview: "This requires two conditions: unity within the EU and smooth communication channels with the President of the United States."
Recently, Trump sent letters to several trade partners, adjusting the tariff proposal made in April and inviting further negotiations. In a letter made public last Saturday, he warned the EU that if negotiations fail, a 30% tariff will be imposed starting in August.
Although the EU had attempted to reach a temporary agreement to avoid high tariffs, Trump's letter shattered Brussels' optimistic expectations for a "last-minute agreement." Countries like Mexico, which are negotiating with the U.S., also expressed surprise at receiving similar letters.
According to previous reports by Bloomberg, the preliminary plan discussed between the U.S. and Europe aims to impose a 10% tariff on most EU export goods, with only a few industries such as aviation and Medical Devices being exempted. The EU is also striving to lower alcohol tax rates and mitigate the impact of a 50% tariff on steel and aluminum through a quota system.
The U.S. proposed a 17% tariff on Shenzhen Agricultural Products Group, and any preliminary agreement will cover non-tariff barriers, economic security cooperation, and Global Strategy procurement.
The focus of negotiations is currently on car tariffs rather than compensation mechanisms. According to informed sources, negotiations between the U.S. and Europe will continue this week. In addition to the general tariffs to be implemented in August, Trump has also imposed a 25% tariff on Cars and parts, doubled the tariffs on Metal products, and plans to implement special industry taxes in fields such as pharmaceuticals and semiconductors, recently announcing a 50% tariff on Copper.
At this stage, while the agreement cannot automatically exempt the EU from special industry taxes, the group is still striving for preferential treatment for potentially affected industries.
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