The European Union has formally suspended retaliatory tariffs on American goods worth €93 billion, following a breakthrough trade agreement with the United States last month.
The move, confirmed by EU trade spokesperson Olof Gill on Monday, comes just days before the bloc’s countermeasures were due to take effect on August 7. “The Commission has today adopted the necessary legal procedures to suspend the implementation of our EU countermeasures,” Gill told reporters in Brussels.
The suspension follows successful negotiations between Brussels and Washington aimed at defusing transatlantic trade tensions and securing more predictable terms for European exporters.
Under the new framework, a 15% tariff will apply to EU goods entering the US market. The rate includes the Most Favoured Nation (MFN) tariff and will serve as a cap for all goods, with the exception of steel and aluminium, which remain subject to separate US restrictions.
Key industries, including pharmaceuticals and semiconductors, will benefit from zero tariffs — though provisions allow for future increases due to ongoing US Section 232 national security investigations. Even in those cases, tariffs will not exceed the 15% cap.
The cap also applies to automotive exports, covering both vehicles and car parts, with no quotas or volume restrictions.
EU officials have described the agreement as a stabilising force for European businesses, particularly amid ongoing global supply chain uncertainties.
“This is an insurance policy against higher tariffs,” said Gill. “We reached a negotiated solution to avoid a lose-lose situation. That’s what our member states and our businesses asked for.”
Gill also addressed criticism from German Finance Minister Lars Klingbeil, who described the EU’s approach as “too weak” during recent talks in Washington. “It is surprising to us to hear that a minister from the member state in question has aired that view,” Gill responded.
Klingbeil had been in Washington seeking a tariff exemption for German steel during discussions with US Treasury Secretary Scott Bessent.
While the final text of the joint EU-US trade framework has yet to be published, EU officials say it is nearing completion. “It’s pretty much ready,” said one official, adding that the EU is waiting for the US to finalise outstanding elements.
The suspension of EU countermeasures will last for six months, providing time for the deal to be implemented and for both sides to assess its effectiveness. Meanwhile, US tariffs on EU imports under the new 15% regime are expected to come into effect on August 8.
