EU Suspends Retaliatory Tariffs On US Goods After Trump Trade Deal

(MENAFN- Live Mint) The European Union (EU) on Tuesday announced that it is suspending its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month.

"The commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on August 7," reported AFP, quoting EU trade spokesman Olof Gill.

Trade war averted

The European Commission, which is in charge of trade policy for the 27-country bloc, had created a list of US goods to be targeted if a deal with the US was not reached by the deadline of August 1, 2025.

These countermeasures were designed to target a range of US exports, ranging from soybeans to planes, cars and whisky. The move was a response to the threat of steep tariffs from the US.

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However, European Commission President Ursula von der Leyen clinched a framework accord with President Donald Trump on July 27, effectively averting the deadline looming for steep levies.

Trade deal at a glance

Following the agreement, EU exports to the US will now face a 15 per cent tariff, starting from August 8, 2025. While this is significantly higher than customs duties before Trump returned to the White House, it is much lower than the 30 per cent tariff that President Trump had previously threatened.

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The new tariff rate, which applies to most goods, is intended to provide stability for businesses on both sides, AFP reported.

Future outlook

A senior EU official noted that both sides are currently working to flesh out the details of the leaders' agreement and more information about the accord is expected "very, very soon".

The official also warned,“Brussels can, however, always unfreeze its retaliation should anything unexpected happen.”

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"We put it back into the freezer and we can always take it out if needed, so we can always unsuspend the suspension," AFP reported, quoting the senior EU official.

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