The European Commission is taking more time to reach a trade agreement with the United States, said European Commissioner Valdis Dombrovskis (Economy) on Tuesday. Initially, a deadline was due to expire on Wednesday, but US President Donald Trump has postponed it by several weeks.
Both parties want to use that extra time to reach an agreement on mutual trade in goods, which amounts to 867 billion euros annually.
Trump has “postponed the deadline to August 1, as we understand it, and that gives us more time,” Dombrovskis said after a meeting with EU finance ministers.
According to him, intensive negotiations have been conducted and will continue in the coming period. The European Commissioner emphasized that the EU wants an agreement as soon as possible, in order not to leave anyone in uncertainty longer than necessary.
“The European economy is showing strength, but we live in a world of uncertainty, especially with the uncertainty about American tariffs,” said Dombrovskis. According to him, the unrest is now leading to the postponement of investment decisions by companies, among other things.
Trump came with import duties for almost all countries at the beginning of April, thus unleashing a global trade war. A few days later, he came with a 90-day moratorium on duties, partly because financial markets did not react positively to the policy.
That pause was due to expire on Wednesday, but on Monday the president decided to postpone the deadline to August 1. He did announce high duties for a number of countries, including South Korea, Japan and South Africa.