European Union holds off on US tariff countermeasures for now

The European Union said on Sunday it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement, after US President Donald Trump ratcheted up his trade war on the bloc.

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Trump said on Saturday he would be imposing a 30% tariff on most imports from the EU from August 1, though his deadline gave the EU, like other targeted countries, time to hammer out agreements that could lower the threatened tariff rate.

Ursula von der Leyen, head of the EU's executive Commission which handles trade policy for the 27 member states, said the bloc would maintain its two-track approach: keep talking and prepare retaliatory measures.

"We have always been very clear that we prefer a negotiated solution.

This remains the case, and we will use the time that we have now," von der Leyen told a press conference, adding that the bloc would extend its halt on countermeasures until August.

Von der Leyen's decision to resist immediate retaliatory measures points to the European Commission's desire to avoid a spiralling tit-for-tat escalation in the trade war while there remains a chance of negotiating an improved outcome.

White House economic adviser Kevin Hassett said Trump had seen some trade deal offers and thinks they need to improve, adding that without that, he would proceed with the threatened tariffs on Mexico, the EU and other countries.