EU delays tariff response to US for six months

August 5, 2025 (MLN): The European Union revealed a six-month suspension of its planned countermeasures against the United States' tariffs, which were due to take effect this week.

"On 27 July 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump agreed a deal on tariffs and trade," stated the EU Commission spokesperson for trade.

The agreement has been described as restoring “stability and predictability for citizens and businesses on both sides of the Atlantic.”

The Commission also confirmed that it will suspend the countermeasures by 6 months, which were originally set to be implemented on 7 August.

The EU continues to collaborate with the US to finalize a Joint Statement, as agreed in July, as CNBC reported.

The European Commission, which serves as the executive body of the EU, is preparing the necessary steps to formalize the pause, expected to take effect Tuesday.

The White House did not immediately reply to CNBC’s request for comment on the matter.

The delay marks a significant concession from one of the United States’ major trading partners, following weeks of high-level negotiations between President Trump and President von der Leyen.

Last month, Trump declared a trade deal with the EU imposing 15% tariffs on most European goods entering the U.S., including automobiles.

In return, the White House claimed that the EU would eliminate all tariffs on U.S. industrial goods and commit to purchasing $750 billion worth of U.S. energy, along with $600bn in additional investments into the U.S.

However, details regarding who would execute these purchases or investments remain unclear, as the EU lacks the authority to mandate private entities to buy American oil or grain.

The EU emphasized that the July agreement was political and “not legally binding.”

The joint statement affirmed that both sides will continue negotiations under their respective internal procedures to fully implement the political framework.

This development comes as President Trump’s trade agenda faces another pivotal week.

After repeated delays, tariffs on over 60 countries are scheduled to begin August 7, following a shift from the previous start date of August 1.

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