The European Union will halt two pending packages of countermeasures against US tariffs for six months, after securing a deal with President Donald Trump, Reuters reported on Monday, quoting a European Commission spokesperson. These measures, which were set to take effect on August 7, will now be suspended as the EU and US work on a formal Joint Statement, agreed upon on July 27, the report said.
What Was on the EU Countermeasure Table?
The bloc’s countermeasures were set up in two parts:
1. In retaliation for American duties on steel and aluminum, and
2. To respond to Trump’s 15% tariffs on a wide range of EU goods, including plans to eventually apply duties to cars and auto parts.
Previous EU proposals had included tariffs of up to 30% on US products such as bourbon, aircraft, soybeans, and autos, with a total scope of €93 billion in trade at stake, as reported by Euro News.
A Deal Still in Progress
The Commission emphasised that while the suspensions are in place, negotiations are still underway. “The EU continues to work with the US to finalise a Joint Statement, as agreed on 27 July,” the spokesperson said, per news agency Reuters.
Earlier, a majority of EU member states, including Germany, had indicated openness to triggering these countermeasures as powerful economic tools in case EU-US trade negotiations faltered.
US tariffs currently stand at 50% on EU steel and aluminum, 25% on cars, and 10% on other European imports.
