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Ministers exchanged views on the state of play and prospects for EU-US trade relations, in light of recent developments.
The Council found the announced 30% tariffs unjustified and unacceptable. Ministers remained nevertheless fully committed to working with the US on a negotiated outcome – one that delivers tariff relief and brings back stability and predictability to transatlantic trade. Ministers supported the Commission to lead these negotiations on behalf of the EU.
EU countermeasures
Ministers have broadly supported the extension of the suspension of the first set of EU countermeasures (additional tariffs on US imports worth about EUR 21 billion) from 15 July to early August, in order to provide more room for negotiations. Procedural aspects of this extension will be handled via comitology, under the leadership of the Commission.
In parallel, preparations for possible additional countermeasures have been stepped up, and the Commission could present the relevant proposal(s) if circumstances require.
Today’s meeting was called in light of the current challenges in trade relations with the US. The EU stands united for a mutually beneficial deal and we will keep negotiating in good faith. At the same time, we stand ready to defend our interests, including proportionate countermeasures if required. In these times of geopolitical uncertainty and rising protectionism, it is more important than ever that we in the EU do not turn our backs to the rest of the world. We must accelerate the ongoing bilateral trade negotiations with other partners and get agreements over the finishing line.
Lars Løkke Rasmussen, minister for Foreign Affairs of Denmark
Trade diversion and diversification
Ministers also touched upon issues related to consequences of the new US trade policy such as trade diversion, which the Commission is closely monitoring. This work is being carried out in close cooperation with member states and business stakeholders.
The EU is also accelerating efforts to diversify its trade relationships and deepen global partnerships. The political agreement reached on 13 July with Indonesia on a Comprehensive Economic Partnership Agreement is a strong and timely example of this broader strategy.
US tariffs
The US country-specific tariffs against the EU are on hold until 1 of August. However, the US is currently already applying some tariffs to the EU: "baseline" tariff of 10%, "Section 232" additional tariffs of 50% on steel and aluminum, and additional 25% on automotives. As a result of these US trade policy measures, currently around 70% of EU exports to the US are affected by various US additional tariffs.
Ministers held an exchange of views on ongoing bilateral trade negotiations, including agreements already negotiated and still pending, such as Mercosur, Mexico, Indonesia and the revision of the Ukraine Association Agreement, as well as ongoing trade negotiations with India, Thailand, Philippines, Malaysia,Australia, and the Gulf Cooperation Council countries.
In the context of the current trade tensions and disruption and unpredictability of the Transatlantic trade relationship, ministers underlined the importance of accelerating the ongoing bilateral trade negotiationsand awaited the Commission proposals for the agreements with Mercosur and Mexico.
Ministers were in favour of building stronger bilateral trade relationships with a broader range of partners in regions like Latin America, Asia, the Indo-Pacific, the Middle East, and Africa as well as with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Ministers welcomed the political agreement reached with Indonesia, which was a decisive step towards concluding negotiations by September 2025, and hoped that it would be possible to conclude an economically meaningful agreement with India before the end of the year.
Ministers discussed the latest contacts with China and the trade aspect of the bilateral relationship, ahead of the EU–China summit, scheduled later in July.
The Commission provided an update on its contacts with Chinese counterparts, focusing on the Chinese export controls on rare earths, market access imbalances (including sanitary and phytosanitary, cosmetics, and pharmaceuticals). The Commission also informed ministers on the battery electric vehicles case, and the Chinese response to the latter through unsubstantiated trade defense cases on EU imports of pork, dairy, and brandy.
Ministers emphasized the need for de-risking and for diversifying EU’s trade relations.
