EU freezes trade response, seeks dialogue with U.S.

The European Union has chosen dialogue over confrontation with the United States, freezing its planned trade retaliation despite Donald Trump's threat to impose 30% tariffs on European goods starting August 1.

“We will extend the suspension of countermeasures until early August,” announced European Commission President Ursula von der Leyen, signaling a cautious approach ahead of talks with U.S. officials.

The suspension—originally set for 90 days and expiring this week—will now be extended by at least two more weeks to allow for further negotiations.

Still, Brussels is preparing for all scenarios. Von der Leyen confirmed that while a negotiated solution remains the goal, the EU is ready with two potential response packages: one worth €21 billion targeting U.S. goods in response to steel and aluminum tariffs, and another €72 billion package against the broader tariffs, pending political approval