The European Union has announced an extension of its delay on implementing trade countermeasures against the US until August 2025, reflecting a preference for negotiation.
Delay of EU Trade Measures
The European Union, led by President Ursula von der Leyen, has announced a delay in countermeasures against the US until August 2025 to allow for further negotiations. These measures were initially a response to tariff threats from President Donald Trump, who indicated that tariffs could reach 30%. Ursula von der Leyen stated, "We will therefore also extend the suspension of our countermeasures till early August... At the same time, we will continue to prepare further countermeasures so we are fully prepared."
Market Reactions
Market reaction has been muted due to a lack of immediate impact on digital assets, as evidenced by the absence of public shifts in on-chain data. The EU has publicly committed to preparing additional countermeasures if negotiations do not resolve the conflict.
Potential Use of "Trade Bazooka"
The EU's use of the "Trade Bazooka" may mark its first-ever adoption of the Anti-Coercion Instrument as leverage in trade discussions. Analysts suggest this could significantly reshape global trade negotiations and impact financial markets.
Thus, the EU's decision to delay countermeasures against the US underscores the organization’s preference for peaceful negotiations while keeping the option of further actions available in the future.
