EU halts countermeasures against US tariffs after Trump deal
What's the story
The European Union (EU) has announced a six-month suspension of its planned countermeasures against US tariffs. The decision comes after a tariff agreement between EU Commission President Ursula von der Leyen and US President Donald Trump on July 27. The initial countermeasures, which were supposed to come into effect on August 7, targeted some €93 billion worth of US goods including soybeans, aircraft, and bourbon whiskey.
Trade stability
Major concession from EU
An EU spokesperson confirmed the suspension, saying, "The Commission will take the necessary steps to suspend for six months the EU's countermeasures against the US." The move is seen as a major concession from one of America's biggest trading partners. Under the deal, Trump agreed to lower tariffs on most European goods to 15%. However, concerns remain over investment commitments and relief for strategic sectors like aircraft manufacturing.
Trade deal
EU has expressed concerns over the details of the deal
The EU has expressed concerns over the details of the deal, particularly regarding investment commitments. The US also promised to purchase $750 billion worth of energy from the EU, but how this will be executed remains unclear. As discussions continue, the trade deal is politically significant but legally non-binding. The EU is likely to push for tariff exemptions and other trade reliefs for critical sectors in future negotiations.