EU Spokesperson: EU has no intention to retaliate before August 1 | Forexlive

• EU Trade Commissioner Sefcovic will talk with US Trade Representative Greer this early evening
• The EU has no intention to move forward with any trade countermeasures before August 1

Also comments from German Chancellor Merz:

• The goal is a quick solution, I am in close contact with Trump and Von Der Leyen
• The EU is refraining from counter measures for now, but US should not underestimate willingness to respond

The threat of 30% tariffs on EU was of course ignored by the markets given the August 1 deadline and the usual TACO trade. Markets opened lower yesterday but eventually closed with gains.

Everyone got used to Trump’s empty threats. To scare the market, Trump would need to place tariffs without deadlines, pauses or delays and retaliations would add fuel to the fire. For now, people just expect the deadlines to be postponed and deals to be eventually reached.