- The European Union has suspended planned tariffs on U.S. goods, originally set for August 7.
- The move follows a July 27 trade deal between President Trump and Commission President von der Leyen.
- The EU says the suspension is temporary and subject to reversal if negotiations falter.
- Trump imposed a new 15% tariff on most EU imports, effective August 8.
- Cars, aircraft, and car parts remain under elevated U.S. tariffs despite expectations of exemptions.
The Big Picture
The European Commission announced Tuesday it will suspend for six months a sweeping package of retaliatory tariffs against U.S. exports, halting what could have escalated into a major transatlantic trade dispute. The move comes after a July 27 agreement between European Commission President Ursula von der Leyen and U.S. President Donald Trump to pursue a joint trade deal.
“With these objectives in mind, the Commission will take the necessary steps to suspend by six months the EU’s countermeasures against the US, which were due to enter into force on 7 August,” said Commission trade spokesperson Olof Gill, as quoted by CNBC.
What’s New
The suspended tariffs would have impacted key U.S. exports including soybeans, whiskey, automobiles, and aircraft. The European Commission had initially planned a two-tiered tariff response—worth €21 billion and €72 billion respectively—which was merged into a single list by July 24 after receiving approval from EU member states.
According to RFI, the suspension was formalized with legal steps taken by the Commission and is expected to last six months, pending finalization of a joint U.S.-EU statement. EU officials hinted that more details will emerge soon.
What They’re Saying
Gill emphasized the deal’s importance for both sides: “A first important foundation is laid for restoring clarity to EU companies exporting to the US.”
Trump’s Tariff Moves
Despite the EU’s suspension, the U.S. has pushed forward with a fresh wave of tariffs. On July 31, President Trump signed an executive order imposing a 15% duty on most EU imports, effective August 8. According to Express UK, these new tariffs are slightly lower than the earlier threat of 30% but still higher than pre-2025 levels.
Some industries had hoped for exemptions, particularly automotive and aviation. However, the final order kept existing 25% tariffs on car parts and maintained penalties on aircraft and related equipment.
The Bottom Line
While the EU’s decision to suspend countermeasures signals a desire for de-escalation, the transatlantic trade relationship remains fragile. Both sides appear committed to finalizing a broader agreement, but uncertainties remain as Washington continues to wield tariff policy as leverage. More executive orders are reportedly expected soon from the Trump administration.
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