Economists had already downgraded growth for the European Union, and the new duties would hit industries there especially hard. Companies are looking for ways to blunt the impact.

President Trump's tariff threats are more about dominating the news than trade negotiations, causing market reactions and raising economic concerns. His feud with Fed Chair Jerome Powell and potential aggressive interest rate cuts add further market uncertainty.

BRUSSELS, July 13 (Reuters) - The EU will extend its suspension of countermeasures to U.S. tariffs until early August as it aims for a negotiated solution on trade with the United States, European Commission President Ursula von der Leyen said on Sunday.