EU plans to engage more with other nations hit by US tariffs

The European Union is preparing to step up its engagement with other countries affected by US President Donald Trump's tariffs following a slew of new threats to the bloc and other US trading partners, according to people familiar with the matter.

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The contacts with nations including Canada and Japan could include the potential for coordination, said the people, who spoke on condition of anonymity to discuss private deliberations.

The move comes as talks between the EU and the US have dragged on and continue to be stuck on several issues, including cars and tariff rates on agriculture.

Member states were briefed on the status of talks on July 13.

Earlier in the day, European Commission chief Ursula von der Leyen said the bloc will extend the suspension of trade countermeasures against the US until Aug 1 to allow for further talks.

The measures had been adopted in response to tariffs imposed earlier by Mr Trump on steel and aluminum before being paused a first time, and were due to snap back into place at midnight on July 15.

"At the same time, we will continue to prepare further countermeasures so we are fully prepared," Dr von der Leyen told reporters in Brussels on July 13, while reiterating the EU's preference for a "negotiated solution".

The current list of countermeasures would hit about €21 billion (S$31.4 billion) of US goods, while the EU has another one ready of about €72 billion, as well as some export controls, that would be presented to member states as early as July 14, said the people.