By Staff, Agencies

European Commission President Ursula von der Leyen has confirmed a delay in the European Union's planned retaliatory tariffs on US goods, aiming to provide more time for diplomatic negotiations and avert a deepening trade dispute.

The EU’s countermeasures—valued at approximately $24 billion—had been scheduled to take effect Monday in response to President Donald Trump’s decision to impose a 25% tariff on all steel and aluminum imports earlier this year. Those tariffs, originally announced in March, had already been paused once for bilateral talks.

However, the situation escalated Saturday when Trump announced a new 30% tariff on EU imports starting August 1. In a letter to von der Leyen, Trump warned that any EU retaliation would be met with additional tariffs equal to the percentage levied by Brussels.

Speaking at a joint press conference with Indonesian President Prabowo Subianto on Sunday, von der Leyen emphasized that the EU’s retaliatory measures would now be paused until August 1 to allow time for negotiations.

"This is very important. This is now the time for negotiations," she said, underscoring the EU's preference for diplomacy. “But this also shows we are prepared for all eventual scenarios.”

She reiterated that if a negotiated settlement is not reached by the new deadline, the EU is fully prepared to respond with its own countermeasures. “We’ve prepared for this and we can respond with countermeasures if necessary,” she said.

Trump has used tariffs extensively as a tool to reduce trade deficits, push trade partners to the negotiating table, and boost domestic manufacturing. According to the Office of the US Trade Representative, the US trade deficit with the 27-member European Union stood at $235.6 billion last year.