The European Union has delayed the imposition of retaliatory tariffs on US exports, extending the suspension until August 1 as Brussels continues negotiations with Washington to avert a worsening trade war. European Commission President Ursula von der Leyen confirmed the decision, emphasizing that the EU still hopes for a diplomatic resolution.

Von der Leyen said the EU remains committed to finding a negotiated solution to the transatlantic trade dispute, triggered by President Trump’s threat to impose 30% tariffs on EU and Mexican exports from August 1. Speaking in Brussels, she stressed: “We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now until the 1st of August.”

The EU had previously announced €26 billion ($30 billion) in retaliatory tariffs in response to Trump’s duties on steel and aluminium but paused implementation in hopes of talks progressing. The current delay follows Trump’s latest threats and a lack of progress in negotiations.

Von der Leyen warned that the EU is still preparing its countermeasures if no breakthrough is reached. “At the same time, we will continue to prepare for the countermeasures, so we’re fully prepared,” she said.

US-EU trade reached €1.7 trillion ($2 trillion) in 2024, making the EU Washington’s largest trading partner. Trump’s economic advisers have indicated that he remains unsatisfied with the offers presented by US allies thus far.