EU Suspends U.S. Tariff Countermeasures for 6 Months

 

The European Union announced it will suspend its two sets of retaliatory tariffs against the United States for six months after a deal was struck with U.S. President Donald Trump, a European Commission spokesperson said on Monday.

The agreement aims to ease trade tensions but leaves key details unresolved, particularly tariff rates on spirits and car-related goods. Trump's recent executive order, which set 15% tariffs on most EU goods, did not exempt automobiles or car parts raising concerns among European manufacturers.

See also: Lithuania President Gitanas Nausėda Appoints Finance Minister as Acting PM After Paluckas Resigns

EU officials indicated they expect additional executive orders from the U.S. administration in the coming weeks. Meanwhile, both sides are working to finalize a Joint Statement, as agreed on July 27, outlining the path forward for trade relations. The European Commission confirmed it would take the steps necessary to suspend the planned countermeasures, which were initially set to take effect on August 7.

The suspended EU tariffs include two key components: one responding to U.S. duties on steel and aluminium, and another addressing Trump’s baseline tariffs, including measures targeting the automotive sector.

The European Commission emphasized that the suspension is a gesture of goodwill aimed at facilitating negotiations and preventing a further escalation of the transatlantic trade dispute. However, officials cautioned that significant uncertainties remain, especially since the initial U.S. executive order did not provide exemptions for major European exports such as cars and car parts.

See also: Lithuania President Gitanas Nausėda Appoints Finance Minister as Acting PM After Paluckas Resigns

While talks progress, the EU has signaled readiness to reinstate countermeasures if discussions stall or if additional U.S. tariffs harm European interests. The pause is designed to buy time for both parties to reach a more comprehensive agreement, though industry stakeholders on both sides of the Atlantic remain wary of potential economic fallout if negotiations break down.