In a major step towards easing trade tensions, the European Union announced on Tuesday that it will suspend its planned retaliatory tariffs on US goods worth 93 billion euros ($107 billion).The move 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 significant concession from the 27-member bloc, one of America’s biggest trading partners.The pause is expected to last six months, reports CNBC. It comes after weeks of negotiations between Trump and von der Leyen over tariff disputes and broader trade issues.“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 said in a statement.The EU described the agreement as one that restores “stability and predictability for citizens and businesses on both sides of the Atlantic.” The Commission also said it would “continue to work with the US to finalise a Joint Statement, as agreed on 27 July.”As part of the deal, Trump announced 15 per cent tariffs on most European goods entering the US. In return, the EU pledged to remove several trade barriers, including the elimination of all EU tariffs on US industrial exports.The White House also claimed the EU would buy $750 billion worth of US energy and invest another $600 billion into the American economy. However, questions remain over how these commitments will be fulfilled, as the EU cannot mandate private companies to make such purchases.The EU has clarified that the July deal is a political agreement and “not legally binding.”A senior EU official said both sides were working on the details of the leaders’ agreement and hoped to share more information “very, very soon”.An EU official also warned that the suspension could 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 said.Following the deal, EU exports will face a 15 per cent tariff starting August 8. This rate is higher than it was before Trump returned to the White House but still much lower than the 30 per cent he had earlier threatened.
