Daijiworld Media Network - Brussels

Brussels, Jul 14: The European Union is ramping up its outreach to key global partners like Canada and Japan in response to fresh tariff threats from US President Donald Trump, amid stalled trade talks between Brussels and Washington.

According to insiders, the EU is exploring coordination options with other affected nations even as it extends the suspension of its countermeasures against the US until August 1 to allow room for further negotiations.

European Commission President Ursula von der Leyen confirmed the temporary extension on Sunday but warned that preparations for countermeasures—impacting up to €93 billion worth of US goods—were underway. “We will continue to prepare further countermeasures so we are fully prepared,” she told reporters.

The suspended measures had originally been adopted in retaliation to Trump’s earlier steel and aluminum tariffs. While the EU remains committed to a negotiated outcome, von der Leyen clarified that the bloc’s powerful anti-coercion instrument would not be activated "yet", stating that it is reserved for “extraordinary situations.”

However, pressure is mounting within the bloc. French President Emmanuel Macron called for speeding up readiness for “credible countermeasures,” and German Chancellor Friedrich Merz warned that Trump’s proposed 30% tariff would strike at the heart of Germany’s export economy.

“If no solution is found, these tariffs will hit us to the core,” Merz said in an interview, calling for EU unity and open communication with Washington.

Trump’s latest proposal includes sweeping 30% tariffs on EU goods, with additional sector-specific levies on cars, metals, semiconductors, pharmaceuticals, and even a 50% duty on copper. Goldman Sachs analysts warn that such tariffs could shave off 1.2% from the eurozone's GDP by 2026.

Though talks are ongoing, optimism in Brussels has dimmed. A tentative deal had been in the works, with proposals of a 10% base tariff, exceptions for sectors like aviation and medical devices, and negotiations around steel, wine, and agricultural rates. But Trump’s recent letters to trading partners, including Mexico and the EU, have complicated the path forward.

Negotiations will resume this week, with the EU now focusing on avoiding the steep car and agricultural tariffs while pushing back against broader sectoral duties.