European Commission President Ursula von der Leyen said on Sunday that the EU will continue holding off on retaliating against US steel and aluminium tariffs, as negotiations remain underway to avoid wider 30% duties.“The United States has sent us a letter with measures that would come into effect unless there is a negotiated solution, so we will therefore also extend the suspension of our countermeasures until early August,” von der Leyen said.The EU’s current pause on its retaliatory tariffs was due to expire between Monday night and Tuesday morning.Meanwhile, Germany’s finance minister Lars Klingbeil stressed the bloc must be ready to act firmly if talks with Washington collapse. Speaking to Sueddeutsche Zeitung, Klingbeil said “serious and solution-oriented negotiations” were still needed, but if they fail, the EU must take “decisive counter-measures to protect jobs and businesses in Europe”.His comments follow US President Donald Trump’s Saturday announcement that the EU and Mexico would face 30% tariffs from August 1. He cited the US trade deficit with the EU as justification.Klingbeil warned the move would create “only losers” and would “threaten the American economy at least as much as businesses in Europe”.He insisted Europe was approaching talks in good faith. “Europe remains determined and united: we want a fair deal,” he said. “Our hand remains outstretched but we won’t accept just anything.” He added that contingency measures in case of a breakdown in talks “must continue to be prepared”.Earlier on Saturday, Donald Trump sent letters to EU and Mexico threatening them of imposing a 30% tariff citing trade deficit and fentanyl crisis, respectively. However, he also assured that there would be “no tariff” if the EU, Mexico, or their companies choose to manufacture in the US, adding that the country would help fast-track approvals in such cases.
