EU supports temporary suspension of countermeasures to allow more space for negotiations with the US

Eduardo González The EU Foreign Affairs Council (FAC) in Trade Format on Monday supported extending the suspension of the first set of countermeasures against US tariffs from July 15 to early August, in order to allow more space for negotiations with Washington, following President Donald Trump's threat to raise tariffs on European products to 30% starting August 1. During the FAC meeting in Brussels, ministers described the tariffs announced by Trump last Saturday as "unjustified and unacceptable," but expressed their "full commitment to working with the United States" to achieve "a negotiated outcome that provides tariff relief and restores stability and predictability to transatlantic trade," according to the Council. They also expressed their support for the Commission to lead these negotiations on behalf of the EU. “The EU is united in favor of a mutually beneficial agreement and we will continue negotiating in good faith,” declared Lars Løkke Rasmussen, Foreign Minister of Denmark, the country holding the rotating Presidency of the EU Council. “At the same time, we are ready to defend our interests, including proportionate countermeasures if necessary,” he warned. “In these times of geopolitical uncertainty and rising protectionism, it is more important than ever that we in the EU do not turn our backs on the rest of the world. We must accelerate ongoing bilateral trade negotiations with other partners and ensure agreements are reached,” he added. Targeted US tariffs against the EU are on hold until August 1. However, Washington is already currently applying some tariffs to the EU: a 10% “benchmark” tariff, additional 50% “Section 232” tariffs on steel and aluminum, and an additional 25% tariff on automobiles. As a result of these US trade policy measures, around 70% of EU exports to the United States are currently affected by various additional tariffs imposed by the Trump Administration. Furthermore, according to the Council, the EU is also accelerating efforts to diversify its trade relations and deepen global partnerships. The political agreement reached on 13 July with Indonesia on a Comprehensive Economic Partnership Agreement is a strong and timely example of this broader strategy. In this regard, ministers held an exchange of views on ongoing bilateral trade negotiations, including agreements already negotiated and still pending, such as Mercosur, Mexico, Indonesia, and the revised Association Agreement with Ukraine, as well as ongoing trade negotiations with India, Thailand, the Philippines, Malaysia, Australia, and the Gulf Cooperation Council countries. In the context of ongoing trade tensions and the disruption and unpredictability of the transatlantic trade relationship, the ministers underscored the importance of accelerating ongoing bilateral trade negotiations and awaited the Commission's proposals for the agreements with Mercosur and Mexico.

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