The European Union will suspend its planned retaliatory tariffs on U.S. goods for six months, following a July 27 agreement between European Commission President Ursula von der Leyen and U.S. President Donald Trump. The decision halts two waves of countermeasures that were set to begin August 7, targeting U.S. steel, aluminum, and automotive exports.
"With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the EU's countermeasures against the US, which were due to enter into force on 7 August," the European Commission spokesperson for trade said in a statement Monday.
The move follows Trump's executive order last week imposing 15% tariffs on most European goods entering the U.S., including cars and car parts. While the order contained no sector-specific carve-outs, EU officials signaled the bloc expects more executive actions in the coming weeks.
The EU's gesture of delay is aimed at facilitating final negotiations on a Joint Statement between the two parties. "The EU continues to work with the US to finalise a Joint Statement, as agreed on 27 July," the spokesperson said.
The White House has not issued a formal response to the EU's announcement. But the Trump administration has framed the July agreement as a win for American industry. Trump claimed the EU "will remove significant tariffs, including the elimination of all EU tariffs on U.S. industrial goods exported to the EU," and commit to $750 billion in U.S. energy purchases along with $600 billion in new investments in the U.S.
It remains unclear how or by whom these purchases and investments will be made. The European Commission emphasized that the agreement reached is political rather than binding. "Beyond taking the immediate actions committed, the EU and the US will further negotiate, in line with their relevant internal procedures, to fully implement the political agreement," the EU statement read.
