"On 27/7, European Commission (EC) President Ursula von der Leyen and US President Donald Trump reached an agreement on import tariffs and trade. This agreement has restored stability for citizens and businesses on both sides of the Atlantic," an EC spokesperson said on 4/8.
The announcement confirmed the EU will continue working with the US to finalize a joint statement. Therefore, "the EC will extend the deadline for its planned retaliation against the US, originally set to take effect on 7/8, by six months." The extension may be applied as early as 5/8.
The White House has not yet commented on the EU's announcement.
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European Commission (EC) President Ursula von der Leyen and US President Donald Trump in Scotland on 27/7. Photo: Reuters |
European Commission (EC) President Ursula von der Leyen and US President Donald Trump in Scotland on 27/7. Photo: Reuters
On 24/7, EU member states voted to approve a plan to retaliate against US import tariffs. They combined two previously proposed packages—tariffs on US$21 billion and US$72 billion worth of American goods—into a single list.
The first package of retaliatory tariffs was set to take effect on 7/8. Tariffs on soybeans and almonds were delayed until 1/12. The second package was to be implemented in two stages, starting on 7/9 and early February of the following year. Reuters, citing sources close to the matter, reported the tariffs could reach 30%, similar to the tariffs the US was set to impose on the EU starting 1/8. Most countries agreed with the retaliatory measures.
However, on 27/7, the two sides reached a trade agreement. Under the agreement, tariffs on EU products sold to the US will be 15% starting 1/8, half the previously announced rate.
US President Donald Trump said the EU agreed to purchase US$750 billion of US energy and invest about US$600 billion in the country. The White House said the EU would also remove several import tariffs on US goods, particularly industrial products.
The EU has repeatedly delayed imposing retaliatory tariffs on the US to allow for negotiations, even though the plan was approved in April. Current US tariffs affect €380 billion (US$420 billion) of European exports, equivalent to about 70% of the region's exports.
Ha Thu (Reuters, CNBC)
