President of the European Commission Ursula von der Leyen on Sunday announced a “dual approach” to United States (U.S.) tariffs, which includes talks and countermeasures if necessary.
“We have a dual approach. That is very important. We have always been very clear that we prefer a solution reached through negotiations. That remains the case, and we will use the time we have until August 1st,” said Von der Leyen during a joint press briefing with Indonesian President Prabowo Subianto in Brussels.
She said that, for the second track, they are ready to respond with countermeasures they have prepared if necessary.
“We have prepared and agreed on an initial list of countermeasures. We have developed a second potential list of countermeasures, which is now agreed upon, and the ACI (Anti-Coercion Instrument) was created for emergency situations,” explained Von der Leyen.
She assured that Europe is prepared for all possible scenarios.
“However, we are not there yet. This is very important. Now is the time for negotiations,” she emphasized.
She also announced that the European Union (EU) will extend the suspension of countermeasures against U.S. tariffs until the beginning of August, while continuing to prepare further measures.
The EU paused its countermeasures against U.S. trade tariffs to ensure time and space for negotiations between the EU and the U.S. until July 14th.
The Commission President additionally reiterated the need for diversification of trade relations and work on the single market itself.
She also announced an agreement with Indonesia on creating opportunities in key industries and strengthening the supply chains of critical raw materials.
“I am very pleased to report that we have just reached a political agreement on an ambitious Free Trade Agreement. It is a Comprehensive Economic Partnership Agreement. We call it CEPA,” said Von der Leyen.
Indonesian President Subianto also welcomed the agreement as a very important contribution to economic and geopolitical stability in the world, emphasizing that they want to see more European presence and participation in the Indonesian economy.
“Together we send a strong message about the importance of predictable, long-term partnerships, partnerships built on trust, reciprocity, transparency, and shared values,” added Von der Leyen.
On Saturday, U.S. President Donald Trump announced that the U.S. will impose 30 percent tariffs on the EU and Mexico starting from August 1st, which will endanger trade negotiations between the U.S. and the EU, as the bloc aimed to finalize a comprehensive trade agreement this month.
In a post on the Truth Social network, Trump shared separate letters sent to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, announcing 30 percent tariffs on goods destined for the U.S. from Europe and Mexico.
Von der Leyen then expressed readiness to work on an agreement with the U.S. by August 1st and promised to take all necessary steps to protect the EU’s interests, including adopting proportional countermeasures.
