European Commission President Ursula von der Leyen with U.S. President Donald Trump at the Trump Turnberry golf course in Turnberry, Scotland on July 27.Jacquelyn Martin/The Associated Press
The European Union will suspend its two packages of countermeasures to U.S. tariffs for six months following a deal with U.S. President Donald Trump, a Commission spokesperson said on Monday.
The EU-U.S. agreement leaves many questions open, including tariff rates on spirits, and Mr. Trump’s executive order last week setting tariffs on most EU goods at 15 per cent did not include carve-outs such as for cars and car parts.
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EU officials have said they expect more executive orders to follow soon.
“The EU continues to work with the U.S. to finalise a Joint Statement, as agreed on 27 July,” the spokesperson said in a statement.
“With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the EU’s countermeasures against the US, which were due to enter into force on 7 August.”
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The retaliatory tariffs are in two parts: one in response to U.S. steel and aluminum duties, and the other to Mr. Trump’s baseline and car tariffs.
In North America, Canada has so far failed to reach a trade pact with the U.S., having passed an Aug. 1 deadline set by Mr. Trump. As a result, the U.S. raised tariffs on Canadian goods not covered by the United States-Mexico Canada Agreement to 35 per cent from 25 per cent. Talks with the U.S. are continuing, however.
Mexico has also failed to reach a deal with the U.S., but it was granted a 90-day extension to continue talks before any added tariffs would be put in place by the U.S.
Canadian Finance Minister François-Philippe Champagne and Foreign Affairs Minister Anita Anand are expected to visit Mexico City this week to meet with top Mexican officials and Mexican President Claudia Sheinbaum to discuss trade and the countries’ relations, the Globe and Mail reported this week.
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German Finance Minister Lars Klingbeil said the European Union had been too weak during trade negotiations with the United States and it should become stronger, as much still needed to be clarified on the deal the two sides struck last month.
“Overall, as Europeans, we must become stronger,” Mr. Klingbeil said in Washington ahead of a meeting with U.S. Treasury Secretary Scott Bessent.
“Then we can also stand up to the U.S. with more self-confidence. Not against the U.S., but in dialogue with the U.S.”
Mr. Klingbeil said there needed to be a quick solution to the trade conflict with the U.S. as companies needed planning certainty.
“Even though I am not the one negotiating today – that is the task of the European Commission – a close line of communication between me and Scott Bessent can help clarify things,” he said, emphasizing the importance of the Transatlantic relationship.
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Apart from tariffs, Mr. Klingbeil and Mr. Bessent will discuss how to deal with cheap Chinese goods that are flooding the markets in both the U.S. and Europe, as well as the G20 presidency that the U.S. will take at the end of the year.
“I believe it is important that we, from the German side, keep sending a clear signal: We want to work closely with the American government, we seek dialogue, we do not shy away from difficult topics and are looking at how we can solve problems together,” Mr. Klingbeil said.
The EU’s trade deal with Mr. Trump in July was greeted with a mix of relief and anger, with tariffs set at 15 per cent for most products but negotiations continuing for certain sectors, including steel and aluminum, which carry tariffs of 50 per cent.
Mr. Klingbeil would advocate for a quota system on steel exports to be included in the trade deal, he told reporters.
With files from Globe Staff