EU Halts Plans to Impose Retaliatory Tariffs on US

The European Union (EU) has announced it will pause its two sets of retaliatory tariffs against the United States for six months following an agreement with U.S. President Donald Trump.

According to a European Commission spokesperson, the move temporarily halts countermeasures that were scheduled to take effect on August 7, as both sides seek to ease escalating trade tensions. The move is  to create space for negotiations to prevent a deeper trade conflict, while keeping the option of reactivating tariffs if talks fail.

The EU’s countermeasures were originally introduced in response to U.S. tariffs on steel and aluminium and additional baseline and automotive duties imposed under Trump’s recent executive order issued last week, which set 15% tariffs on most EU goods without offering exemptions for key sectors such as cars and car parts.

EU officials noted that many details of the deal remain unclear, including the final treatment of European spirits, and that further U.S. executive orders on tariffs are expected soon.

According to the Commission, the suspension aligns with the joint objectives agreed with Washington on July 27. “The EU continues to work with the U.S. to finalise a Joint Statement,” the spokesperson said.