EU Extends Suspension of Tariffs Against the US Until August 1

The European Union will extend its suspension of retaliatory trade measures against the United States until August 1, European Commission President Ursula von der Leyen announced during a press briefing following her meeting with the President of Indonesia.

The decision keeps the door open for diplomatic dialogue over the tariffs announced by US President Donald Trump, who has threatened to impose 30% duties on European goods starting August 1.

“We will extend the suspension of our countermeasures until early August. At the same time, we will continue to prepare our response,” von der Leyen said in response to a question about the EU’s reaction to the escalating trade tensions with Washington.

EU Committed to Negotiated Solutions
Von der Leyen reiterated the EU’s commitment to diplomacy, stating that negotiation remains the preferred route in addressing the ongoing transatlantic trade dispute.

“We have always been very clear that we prefer a negotiated solution. That remains the case, and we will use the time available until August 1,” she said. “We have also been preparing. We are now ready to respond with countermeasures if necessary. This dual-track approach is working, because we are well prepared.”

Legal Options Not Yet in Play
While the EU is preparing a list of retaliatory tariffs, von der Leyen clarified that the bloc is not currently considering invoking the Anti-Coercion Instrument (ACI), a legal mechanism designed to counter economic pressure from third countries.

“We haven’t reached that point. The ACI was created for emergency situations,” she noted. However, she confirmed that both a primary and a secondary list of potential countermeasures have already been drafted and agreed upon.

A Broader Trade Strategy
In the same appearance, von der Leyen highlighted the importance of the EU’s newly signed free trade agreement with Indonesia. “We are moving toward diversification of our trade relations with a significant new political and economic agreement with Indonesia,” she said. “This shows our commitment to open and expanding markets. At the same time, we are focused on strengthening the single market, which remains our safe harbor.”

As tensions with the US persist, the EU appears to be preparing for all scenarios—while maintaining a clear preference for diplomacy. The next decisive moment will come on August 1, when the US is set to enforce its proposed tariffs, unless negotiations produce a different outcome.