US President Donald Trump on Saturday derailed months of intense negotiations, announcing that if no agreement is reached by August 1, he will impose broad tariffs on 27 EU member states.
„The United States has sent us a letter with measures that will take effect if no agreement is reached, so we will also extend the suspension of our retaliatory measures until the beginning of August,“ von der Leyen told reporters.
„At the same time, we will continue to prepare our countermeasures so that we are fully prepared,“ she added.
„(The EU) has always made it clear that it prefers a negotiated solution. This remains unchanged, and we will use the time we have left until August 1,“ the European Commission President emphasised.
This move by von der Leyen gives hope that Trump's latest threat, which he also addressed to Mexico, has not destroyed the progress made so far in the negotiations between Brussels and Washington.
The current suspension of EU retaliatory measures on US steel and aluminium tariffs was due to expire on Monday night.
In response to tariffs imposed by Trump on metal imports earlier this year, Brussels had prepared tariffs on US goods worth around EUR 21 billion.
However, in April, the EU announced that it was postponing these measures to allow for a broader trade agreement with the Trump administration.
„We have been working on this from the beginning, and we are now ready to respond with retaliatory measures. We are prepared to do so and, if necessary, we will respond with retaliatory measures,“ von der Leyen said.
The EU remains open to negotiations but will not agree to anything
EU trade ministers will meet in Brussels on Monday to discuss the EU's response to Trump's latest move and, most importantly, how tough a stance to take towards the United States.
German Finance Minister Lars Klingbeil said on Sunday that „serious and solution-oriented negotiations“ with the US remain necessary but added that if they fail, the EU will need „decisive countermeasures to protect jobs and businesses in Europe.“
„Our hand remains open, but we will not accept anything,“ Klingbeil told the Sueddeutsche Zeitung newspaper.
This came after French President Emmanuel Macron on Saturday called on the European Commission, which negotiates on behalf of all EU countries, to „resolutely defend European interests.“
Since January, when the US president returned to office, he has imposed widespread tariffs on both allies and competitors, causing turmoil in financial markets and heightening fears of a global economic downturn.
However, his administration is under pressure to reach agreements with trading partners, as it had previously promised to do so.
So far, US officials have announced only two agreements, with the UK and Vietnam, and have temporarily reduced retaliatory tariffs on China.
The EU, along with many other countries, was prepared to raise US tariffs from the base level of 10% on July 9, but Trump's latest move has postponed the deadline until August 1.
In a letter published on Saturday, Trump justified the new 30% tariffs by citing the US trade imbalance with the European Union.
EU tariffs are significantly higher than the 20% tariffs announced by Trump in April, which he decided not to impose after stock markets began to plummet.