The European Union has suspended retaliatory tariffs on US goods worth €93 billion, after reaching a last-minute deal with Washington.
The tariffs were due to begin on Wednesday and would have targeted US exports such as soybeans, cars, aircraft and whisky.
The European Commission confirmed on Tuesday that the tariffs would not go ahead, putting the suspension into effect for six months.
“The commission has adopted the necessary legal procedures to suspend the implementation of our EU countermeasures, which were due to kick in on 7 August,” said EU trade spokesperson Olof Gill.
Commission president Ursula von der Leyen reached a framework agreement with US president Donald Trump on 27 July, just days before the EU’s planned tariffs were set to take effect.
The Commission had prepared a two-part package of countermeasures, valued at 21 billion and 72 billion euros. These were merged into a single list on 24 July after approval by EU member states.
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'Talks continuing with US'
“The EU continues to work with the US to finalise a joint statement, as agreed on 27 July,” Gill said.
While Brussels has suspended its measures, the US has gone ahead with new tariffs. On 31 July, Trump signed an executive order imposing 15 percent duties on most EU imports from 8 August.
That is higher than levels before Trump returned to office, but lower than the 30 percent that had been threatened.
Some industries expected to be excluded were not. The US order did not include relief for cars and car parts, which remain subject to 25 percent tariffs. Aircraft and related equipment were also not exempted.
Gill said the agreement had brought some short-term stability. “A first important foundation is laid for restoring clarity to EU companies exporting to the US,” he said.
A senior EU official, speaking anonymously, said the deal was still being worked out, with more details expected “very, very soon”.
“We put it back into the freezer and we can always take it out if needed, so we can always unsuspend the suspension,” the official said.
EU officials have said they expect more executive orders from Washington to follow soon.
