The European Union has officially suspended its planned retaliatory tariffs on U.S. goods worth €93 billion, following a breakthrough trade agreement with Washington last month aimed at averting a transatlantic trade conflict.
Olof Gill, spokesperson for the European Commission on trade matters, confirmed on Tuesday that the bloc had adopted the necessary legal measures to halt the countermeasures that were scheduled to take effect on August 7.
“We reached a negotiated solution to avoid a lose-lose situation,” Gill told reporters in Brussels. “That’s what our member states asked for and what businesses asked for. The agreement reached will now provide a stable platform from which we will secure crucial supply chains.”
Under the terms of the deal, a uniform 15% tariff will be applied to all EU goods entering the U.S., replacing a complex web of levies previously faced by European exporters. The new rate includes the Most Favoured Nation (MFN) status and applies across most product categories—excluding steel and aluminium, which remain under separate U.S. national security investigations.
Notably, tariffs on sensitive sectors such as pharmaceuticals and semiconductors have been eliminated for now. However, if investigations under Section 232 of U.S. trade law result in renewed duties on these products, the 15% cap will still apply, providing European firms with a level of predictability.
The agreement also removes quotas and limitations on the import of cars and car parts from the EU, a critical win for the continent’s automotive sector.
A senior EU official said the framework deal with the U.S. is almost final, with both sides putting the finishing touches on a joint statement. “It is pretty much ready,” the official said, “and we are now waiting for our U.S. colleagues to come back and confirm the final few things.”
The EU has also suspended its planned counter-tariffs for six months to allow the agreement time to be implemented and reviewed. Those measures had been prepared to activate automatically on August 7 in the event of a failed deal.
The deal has not been without political criticism. German Finance Minister Lars Klingbeil, who was in Washington for talks with U.S. Treasury Secretary Scott Bessent, criticised the EU’s approach as “too weak.” Gill pushed back, saying the remarks were “surprising” and reiterated that the agreement offers an “insurance policy” for European businesses against future tariff hikes.
U.S. tariffs on EU imports under the new framework are expected to come into force on August 8.
