The president of the European Commission, Ursula von der Leyen, said on Sunday that the European Union (EU) will extend its suspension of commercial countermeasures against the new US tariffs until August 1, while continuing its efforts to resolve the commercial dispute with the US through dialogue.
Outstanding comments
With the aim of maintaining open negotiations after Trump threatened with 30% tariffs on EU products.
The EU prefers a diplomatic resolution, but is also preparing additional retaliation tariffs.
The block has an active list that points to 21,000 million euros in US exports and a second set ready for 72,000 million euros more if necessary.
The powerful EU anti-coercion instrument will not be activated yet, since von der Leyen said that the situation has not reached that level.
Market reaction
At the time of writing, the EUR/USD is traded 0.26% down in the day to 1,1674.
Tariffs – Frequently Questions
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total US imports in this period, Mexico stood out as the main exporter with 466.6 billion dollars, according to the US Census Office, therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
