EU Pauses Retaliatory Tariffs After Reaching Trade Deal with US

The European Union has announced it will suspend its planned trade countermeasures against the United States for six months, following a political agreement between European Commission President Ursula von der Leyen and US President Donald J. Trump just a week ago on July 27.

The EU had been preparing to introduce retaliatory tariffs this week in response to a recent wave of US tariffs, including a 15% duty on most European goods entering the American market. These countermeasures were due to take effect on 7 August but will now be delayed to give both sides more time to finalise the terms of the agreement.

In a statement, the EU Commission said the deal aimed to bring “stability and predictability for citizens and businesses on both sides of the Atlantic.”

According to CNBC, an EU statement on the July deal also stressed that it was a political agreement and “not legally binding.” It added, “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.”