EU-US trade talks: European bloc halts tariff retaliation after Trump deal; pause expected to last six months

US President Donald Trump and European Commission President Ursula von der Leyen (Photo: AP)

In a serious step in direction of easing trade tensions, the European Union introduced on Tuesday that it’ll droop its deliberate retaliatory tariffs on US items value 93 billion euros ($107 billion).The transfer follows a deal struck last month between US President Donald Trump and European Commission President Ursula von der Leyen.

EU trade spokesperson Olof Gill confirmed the suspension: “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.”The suspension of tariffs marks a big concession from the 27-member bloc, one among America’s largest buying and selling companions.The pause is expected to last six months, experiences CNBC. It comes after weeks of negotiations between Trump and von der Leyen over tariff disputes and broader trade points.“On 27 July 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump agreed a deal on tariffs and trade,” the EU Commission spokesperson for trade had stated in a press release.The EU described the settlement as one which restores “stability and predictability for citizens and businesses on both sides of the Atlantic.” The Commission additionally stated it might “continue to work with the US to finalise a Joint Statement, as agreed on 27 July.”As a part of the deal, Trump introduced 15 per cent tariffs on most European items coming into the US. In return, the EU pledged to take away a number of trade boundaries, together with the elimination of all EU tariffs on US industrial exports.The White House additionally claimed the EU would purchase $750 billion value of US vitality and make investments one other $600 billion into the American financial system. However, questions stay over how these commitments might be fulfilled, because the EU can’t mandate personal firms to make such purchases.The EU has clarified that the July deal is a political settlement and “not legally binding.”A senior EU official stated each side had been engaged on the main points of the leaders’ settlement and hoped to share extra info “very, very soon”.An EU official additionally warned that the suspension may very well be reversed if talks break down. “We put it back into the freezer and we can always take it out if needed, so we can always unsuspend the suspension,” the senior EU official stated.Following the deal, EU exports will face a 15 per cent tariff beginning August 8. This charge is larger than it was earlier than Trump returned to the White House however nonetheless a lot decrease than the 30 per cent he had earlier threatened.