EU holds off on U.S. tariff countermeasures

The European Union said it would extend its suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement as U.S. President Donald Trump's administration demanded more concessions from trading partners.

Head of the EU's executive Commission Ursula von der Leyen 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 said.

According to her, 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.