The European Union is considering increasing collaboration with other countries in response to U.S. President Donald Trump's tariff threats.
EU Extends Moratorium on Reciprocal Tariffs
According to Bloomberg, the EU plans to initiate talks with key partners, including Canada and Japan, to align their responses to Trump's tariff threats. Commission President Ursula von der Leyen confirmed that the moratorium on reciprocal tariffs would be extended until August 1, granting negotiators additional time. She stated, "At the same time, we will continue to prepare further countermeasures."
Plans for Expanded Tariff Package
The existing list includes duties on approximately €21 billion ($24.5 billion) worth of U.S. goods, and officials say a broader package, including export controls covering about €72 billion, is ready for approval. Von der Leyen clarified that the bloc’s 'anti-coercion instrument' is currently inactive, stating, 'We are not there yet.'
Markets React to Trump's Tariff Threats
On Monday morning, the euro fell to a three-week low before rebounding to $1.1679, while other currencies like the pound and yen exhibited varied fluctuations against the dollar. Meanwhile, Trump remarked that Powell’s departure would be 'a great thing,' adding pressure on the central bank as he calls for lower borrowing costs.
The EU is striving to protect its economic interests amid escalating trade tensions while seeking collaboration with key international partners.
