【By Guo Wang, Observers Network】The U.S.-EU tariff negotiations have entered a critical phase, with Trump suddenly proposing a 30% tariff that pushed the EU into a corner. The EU, which had once made tough statements to counteract, quickly "softened."
On July 13 local time, European Commission President Ursula von der Leyen stated that she had decided to delay the original plan to impose retaliatory tariffs on $21 billion worth of American products, scheduled for July 15, in order to seek an agreement through negotiation. She said the EU has consistently expressed its preference for resolving issues through negotiations with the U.S., and this position remains unchanged. She also emphasized that the EU will "continue to prepare" the second round of countermeasures list, but will not use the "anti-coercion mechanism." France had repeatedly called for using this tool to counter U.S. tariffs.
Insiders said that the EU plans to contact countries including Canada and Japan, possibly discussing coordinated responses. However, some European business organizations and political figures criticized von der Leyen's strategy as weak, believing that if Trump's tariffs on the EU are officially implemented, von der Leyen would "completely fail."
Von der Leyen told reporters on July 13 that the original plan to implement tariffs on American imports (including chicken, motorcycles, and clothing) scheduled to take effect on July 15 would be postponed until "early August."
"We have always clearly stated our desire to resolve the issue through negotiations with the U.S., and this position remains unchanged."
She added: "At the same time, we will continue to prepare more countermeasures to ensure full readiness."
Photo: Ursula von der Leyen, President of the European Commission
Bloomberg quoted insiders on July 13, saying that the EU is preparing to strengthen cooperation with other countries also hit by U.S. tariffs, contacting Canada, Japan and others, possibly involving coordinated responses.
Insiders revealed that the EU negotiators are currently focusing on the car tariff issue.
According to earlier Bloomberg reports, the U.S. and the EU are exploring a preliminary agreement, whose framework could be a 10% tariff on most EU exports, but with limited exemptions for specific sectors such as aviation and medical equipment. The EU is also seeking to lower tariffs on spirits and wines, and limit the impact of the 50% tariffs on steel and aluminum products imposed by Trump through quotas. The U.S. proposed a 17% tariff on agricultural products.
U.S. President Trump announced on social media on July 12 that he would impose a 30% tariff on the EU and Mexico from August 1.
Von der Leyen responded quickly that day, saying that she would take all necessary measures to protect her interests, considering "appropriate countermeasures," but also stating that "we always prioritize" reaching a solution with the U.S.
French President Macron expressed "strong dissatisfaction" with Trump's tariff threat, stating that France will fully support the EU Commission in continuing negotiations. If no agreement is reached before August 1, the EU should accelerate preparations for "credible countermeasures," using all available tools, including the "anti-coercion mechanism."
In addition, Italian Prime Minister, Danish Foreign Minister, Swedish Prime Minister and others have also spoken out, opposing the risk of a transatlantic trade war, emphasizing that escalating trade conflicts have no winners, and that American consumers will pay a high price.
However, whether to strive for a quick framework trade agreement similar to that of the UK, or to continue negotiations to seek better results, European leaders have diverging opinions.
Several EU senior officials told the Financial Times that they expect Trump will not ultimately carry out his threat to impose a 30% new tariff. It is generally believed within the EU that this is just a means for the U.S. President to pressure the EU during the remaining time of the negotiations.
A EU official pointed out that taking such harsh measures against major trading partners is likely to provoke strong negative reactions from American investors.
"We have confidence in the market," the official said.
The new U.S. tariff threats affect different European countries differently, with Germany and Italy, which have the highest exports to the U.S., being hit first.
The U.S. is Germany's largest trading partner. According to data released by Germany last week, under the pressure of the tariff war, German exports to the U.S. fell by 7.7% in May, down to 12.1 billion euros, the lowest since March 2022, with mechanical engineering, automotive, chemical and steel industries being particularly sensitive. The German Industry Association (BDI) immediately reacted to Trump's tax increase statement on July 12, calling on the EU to find a solution with the U.S. as soon as possible to prevent the situation from escalating further.
German Economy Minister Robert Habeck called for a pragmatic approach by the EU in the tariff negotiations with the U.S. In a statement, she said that the EU must now negotiate a solution with the U.S. in a pragmatic way within a limited time, and that the negotiation work must quickly achieve practical results.
German Chancellor Olaf Scholz said he hoped to reach a "reasonable" agreement with the U.S. In an interview with German public broadcaster ARD on July 13, he said that he had spoken with von der Leyen, French President Macron, and Trump on July 11 and all agreed to use the next two weeks to find a solution.
"The negotiations have been quite deep," Scholz said, "we have seen similar situations in other countries, Canada and China have also received such (tariff) letters. In the end, these are just negotiating gestures, and usually a reasonable solution can be reached, although it is not always the case."
July 13, German Chancellor Scholz was interviewed by German public broadcaster ARD. Background shows the German Bundestag building. Visual China
Deputy Chancellor and Finance Minister of Germany, Lars Løkke Rasmussen, earlier told the South German Newspaper that "we do not need new threats or provocations right now. What we need is for the EU to continue serious and targeted negotiations with the U.S."
"Trump's tariff policy will only bring losers. It poses as much a threat to the U.S. economy as it does to European companies. Therefore, this tariff conflict must end as soon as possible."
Rasmussen warned: "If a fair negotiation solution cannot be reached, we must take decisive countermeasures to protect European jobs and businesses."
Aside from the first round of retaliatory tariff list, the European Commission is also negotiating a second round of tariffs on $95 billion worth of American imports (including aircraft, alcoholic beverages and food), which still requires member state approval.
According to two diplomats, after lobbying from various countries to remove certain sensitive products from the list, the list has been reduced to 72 billion euros.
Two diplomats said that the European Commission will submit the second round of retaliation list to member states for review on July 14.
Currently, the U.S. imposes tariffs on about 380 billion euros of annual imports from the EU.
Von der Leyen said that the European Commission will "continue to prepare" the second round of countermeasures list, but will not use the EU's "anti-coercion mechanism." This mechanism can be used to counter U.S. service exports, such as prohibiting their companies from participating in public procurement projects.
France had repeatedly called for activating the "anti-coercion mechanism," but von der Leyen said, "This tool is designed for extraordinary circumstances, and we have not yet reached that point. Now is the time for negotiations."
Von der Leyen made these remarks as the EU also announced a "political agreement" on a free trade agreement with Indonesia after nine years of negotiations.
Von der Leyen said that promoting trade agreement diversification is a core component of the EU's strategy to deal with the U.S. trade war.
However, some business organizations and political figures criticized von der Leyen's response strategy.
Italian Deputy Prime Minister and Minister of Transport and Infrastructure Matteo Salvini strongly criticized the EU's performance in the negotiations. "There is no reason for Trump to attack our country, and we once again pay for the Europe led by Germany."
Italy's influential agricultural organization, Coldiretti, also criticized the EU's negotiation performance, warning that the 30% tariff threat by Trump would cause a "devastating blow" to Italian food exports, resulting in direct losses of about 2.3 billion euros for Italian producers.
"If these tariffs are confirmed on August 1, it can only mean that von der Leyen's policy has completely failed," said Ettore Prandini, president of Coldiretti.
Italian Prime Minister Giorgia Meloni said on July 13, "Trade wars within the West will only weaken our overall strength to face global challenges," she added, "Europe has sufficient economic and financial strength to stand firm in its position and seek a fair and rational agreement."
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