European Commission President Ursula von der Leyen announced on Sunday that these countermeasures would be postponed until August 1 and that Trump's letter shows that"we have until August 1" to negotiate, writes the Associated Press.

“The United States has sent us a letter with measures that will come into effect if there is no negotiated solution, which is why we will also extend the suspension of our countermeasures until early August,” she said. If a deal cannot be reached, she said, “we will continue to prepare countermeasures so that we are fully prepared.”

The value of trade in goods and services between the EU and the US is expected to reach €1.7 trillion in 2024, according to Eurostat. Europe's largest exports to the US included pharmaceuticals, cars, aircraft, chemicals, medical instruments, as well as wines and spirits.

The announcement made by Ursula von der Leyen comes a day after US President Donald Trump said that 30% tariffs on the European Union and Mexico would come into effect starting August 1.