Trump Pushes for More Concessions as EU Delays Tariff Response

By Julia Payne

BRUSSELS () - The European Union announced on Sunday that it will prolong the halt of retaliatory actions against U.S. tariffs until early August and remain committed to seeking an agreement through negotiations, as the administration of U.S. President Donald Trump has called for additional concessions from trade allies.

On Saturday, Trump announced he plans to apply a 30% tax on most goods coming from the European Union and Mexico starting August 1, joining previous alerts directed at other nations and giving those regions fewer than three weeks to negotiate agreements that might reduce the proposed tariff level.

A White House economic advisor named Kevin Hassett stated on Sunday that the current trade agreements between nations do not meet President Trump's expectations, adding that "the tariffs are genuine" unless changes occur.

The president believes that agreements should be improved," Hassett said during an interview with ABC's This Week show. "And essentially drawing a boundary, he distributed these letters to people, and we will find out how things turn out.

Ursula von der Leyen, leader of the European Union's executive commission responsible for trade policies across the 27 countries, stated that the union will continue with its dual strategy: engage in dialogue while also getting ready to take countermeasures.

"Throughout, we've consistently emphasized our preference for a negotiated resolution. That stance hasn't changed, and we'll make use of the current period," von der Leyen stated during a press briefing, noting that the group will continue its pause on retaliatory actions through August.

Von der Leyen's choice not to implement swift countermeasures indicates the European Commission's intention to prevent a worsening cycle of mutual retaliation in the trade conflict as long as there is potential for achieving a better resolution through negotiations.

German Chancellor Friedrich Merz stated on Sunday that he is "very dedicated" to resolving trade issues with the United States. He told the German public network ARD that he plans to focus closely on this matter alongside von der Leyen and French President Emmanuel Macron during the upcoming two-and-a-half-week period.

When asked about the effect of a 30% U.S. tariff on Germany, Merz stated: "Should this occur, we would need to delay significant portions of our economic policy initiatives as it would disrupt all areas and severely affect the German exporting sector."

TEST OF UNITY

The most recent move by Trump raises the issue of how to react, which could challenge the cohesion among member nations, as France seems to adopt a stricter stance compared to Germany, the block's major manufacturing country with an economy significantly reliant on trade.

Macron stated that the Commission must now more than ever "demonstrate the Union's commitment to strongly protect European interests," and mentioned that responses could potentially involve what are known as counter-Coercion mechanisms.

German Finance Minister Lars Klingbeil stated on Sunday that the EU must be prepared to implement strong measures if negotiations fall through.

"If a justly negotiated agreement fails, we will have to implement strong retaliatory actions to safeguard employment and businesses across Europe," said Finance Minister Lars Klingbeil, who also serves as deputy chancellor within the governing coalition, to the Süddeutsche Zeitung newspaper.

Although the EU has refrained from responding with retaliation against the U.S. during the past few months since Trump imposed tariffs on the region, it has prepared two sets of measures that could affect up to 93 billion euros worth of American products.

An initial measure, in reaction to U.S. tariffs of 50% on imported steel and aluminum that could affect 21 billion euros worth of American products, was put on hold in April for 90 days to provide an opportunity for discussions. The pause was scheduled to end on Monday prior to the announcement of the extension.

Another batch of retaliatory actions targeting Trump's "mutual" tariffs has been under development since May and was planned to affect 72 billion euros worth of American products. These steps remain undisclosed, and the ultimate list must be approved by member countries.

ANTI-COERCION INSTRUMENT

On Sunday, Von der Leyen stated that the application of the EU's Anti-Coercion Mechanism had not been considered yet.

The device enables the block to respond to foreign nations that apply financial pressure on European Union member states to alter their approaches.

"The anti-coercion mechanism is designed for exceptional circumstances; we have not reached that point yet," she stated.

Potential countermeasures might involve limiting European Union market entry for products and services, along with additional economic actions covering sectors such as foreign direct investment, financial systems, and restrictions on exports.

As an indication of the EU's intention to secure agreements with additional trade allies amid growing instability in transatlantic ties, Von der Leyen stated that a political consensus has been achieved to move forward with an EU-Indonesia trade pact.

French cheese makers have raised concerns about the harmful effects of a 30% tax on the domestic milk sector, which sends almost half of its products abroad, such as to the United States.

"It's a new setting we'll need to adapt to — I don't believe this is short-term," said François-Xavier Huard, CEO of the dairy group FNIL.

($1 = 0.8555 euros)

(Authored by Julia Payne and Charlotte Van Campenhout; Additional coverage provided by David Lawder from Washington; Written by Richard Lough; Edited by Gareth Jones, Helen Popper, and Deepa Babington)