Brussels has apparently blinked first in the latest transatlantic trade standoff, delivering a political win for President Donald Trump as he continues to ramp up pressure on the EU over longstanding tariff disputes. The European Commission confirmed on Tuesday that it would postpone a package of retaliatory tariffs on US goods worth around £81billion (€93 billion), which had been due to come into force on August 7.
The suspension comes as the EU and the US work to finalise a joint statement following a deal struck between Commission President Ursula von der Leyen and Mr Trump on July 27. EU spokesperson Olof Gill said: “With these objectives in mind, the Commission will take the necessary steps to suspend by six months the EU’s countermeasures against the US.” He said the delay would deliver “immediate tariff relief” and laid “a first important foundation” for restoring clarity for EU exporters.
Washington had already moved to reduce certain tariffs to 15% last Thursday in line with the agreement.
However, Mr Trump’s Executive Order on July 31 left 25% tariffs on EU cars and strategic sectors like aircraft untouched, prompting complaints from Brussels that key industries were still being targeted unfairly.
The tariff package Brussels has now shelved included two merged lists of products – originally valued at €21 billion and €72 billion – hitting high-profile American exports such as soybeans, vehicles, aircraft and Bourbon whiskey.
Despite the pause, officials admit the broader trade dispute is far from resolved, with both sides still locked in negotiations over the final terms of the agreement.
There are said to be disagreements over how some clauses are interpreted, leaving room for the deal to unravel if progress stalls.
The Commission is pushing the suspension through an urgency procedure, hoping to de-escalate tensions and keep talks on track. EU sources insist the delay is not a capitulation but a pragmatic move to protect European exporters and buy time for diplomacy.
However, the optics of the EU backing off are likely to be seized on by Mr Trump, who is likely to use the development to reinforce his tough-on-trade image.
The move is likely to be viewed in Washington as a clear concession from Brussels — and a sign that the President’s hardball tactics may be yielding results.
The 15% tariff which European Union goods will be hit with when entering the United States is believed to be all-inclusive, and incorporates the Most Favoured Nation Rate, unlike some other countries with deals with the US.
