EU to Pause U.S. Tariff Countermeasures for Six Months

The European Commission announced on Monday that the EU will stop its retaliatory tariffs against the United States for six months under a deal with President Donald Trump. The two packages of countermeasures which target U.S. steel aluminum and auto tariffs will experience a six-month suspension.
The July 27 agreement failed to determine particular tariff levels for spirits and autos despite reaching an agreement. Trump issued a new executive order which imposed a 15% tariff on most EU products but did not include exemptions for automobiles and their components.
EU officials predict additional U.S. executive orders will emerge during the upcoming weeks while negotiations proceed to create a joint statement. The EU had scheduled to activate its countermeasures on August 7 until both parties agreed to suspend them.
The agreement demonstrates a possible reduction in trade tensions between the United States and Europe but negotiators must overcome existing trade disputes that have harmed U.S.-EU relations since 2018.