US-EU tariff tensions: EU extends suspension of countermeasures to August; Germany urges ‘critical, solution-oriented negotiations’

European Commission President Ursula von der Leyen stated on Sunday that the EU will proceed holding off on retaliating in opposition to US metal and aluminium tariffs, as negotiations stay underway to keep away from 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 stated.The EU’s present pause on its retaliatory tariffs was due to expire between Monday night time and Tuesday morning.Meanwhile, Germany’s finance minister Lars Klingbeil burdened the bloc should be prepared to act firmly if talks with Washington collapse. Speaking to Sueddeutsche Zeitung, Klingbeil stated “serious and solution-oriented negotiations” had been nonetheless wanted, but when they fail, the EU should take “decisive counter-measures to protect jobs and businesses in Europe”.His feedback comply with US President Donald Trump’s Saturday announcement that the EU and Mexico would face 30% tariffs from August 1. He cited the US commerce deficit with the EU as justification.Klingbeil warned the transfer 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 religion. “Europe remains determined and united: we want a fair deal,” he stated. “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 despatched letters to EU and Mexico threatening them of imposing a 30% tariff citing commerce deficit and fentanyl disaster, respectively. However, he additionally assured that there can be “no tariff” if the EU, Mexico, or their firms select to manufacture within the US, including that the nation would assist fast-track approvals in such circumstances.