E.U. To Suspend Retaliatory Tariff On U.S. For Six Months As Massive Trade Deal Is Finalized

The European Union will pause its retaliatory tariffs against the United States for six months as Brussels and President Donald Trump’s administration finalize what officials are calling a landmark trade deal. The move signals a major breakthrough in transatlantic trade talks and marks a significant victory for Trump’s tough-tariff negotiating strategy.

A European Commission spokesperson confirmed Monday that the bloc would suspend two sets of countermeasures aimed at U.S. steel, aluminum, and auto-related tariffs, which were set to take effect on August 7. The decision follows a July 27 agreement between E.U. and U.S. officials to de-escalate the tariff war and work toward a broader economic pact.

“The E.U. continues to work with the U.S. to finalize a Joint Statement, as agreed on 27 July,” the Commission said in a public statement. “With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the E.U.’s countermeasures against the U.S.”

The retaliatory measures were originally introduced in response to Trump-era steel and aluminum tariffs, and expanded after President Trump issued a sweeping executive order last week imposing a 15% tariff on most E.U. goods. Notably, Trump’s order exempted European cars and car parts—long a flashpoint in U.S.-E.U. trade tensions—suggesting a strategic olive branch in the broader negotiations.

E.U. officials said they expect further executive orders from the White House in the coming weeks, indicating that both sides are actively negotiating remaining issues such as tariff rates on luxury goods, agriculture, and spirits. One senior European diplomat said discussions had moved from “a standoff to a sprint,” with both sides aiming to finalize terms before the end of the year.

The Trump administration, for its part, has framed the breakthrough as vindication of its America First trade policy. By applying pressure through tariffs and setting hard deadlines, the president has forced foreign governments to the table—without compromising U.S. industry or workers.

Sources close to the talks say the deal under negotiation includes improved access for U.S. energy, digital services, and agriculture, while the E.U. is seeking assurances against future tariff spikes. The temporary suspension gives negotiators time to hammer out these issues, but Trump officials say the clock is ticking.

“We’re not interested in endless dialogue,” one senior trade official said. “The President has made it clear: results come first, or the tariffs stay.”

The six-month suspension also buys time for European leaders facing domestic pressure over the economic impact of an escalating trade war with the United States—especially in export-reliant sectors like automotive, luxury goods, and spirits.

While details of the final deal remain under wraps, both sides appear optimistic. The fact that Trump’s 15% tariff order excluded European automobiles—a long-feared escalation—is being read as a clear sign that a more comprehensive agreement is within reach.

If successful, the U.S.-E.U. trade deal would represent another major foreign policy and economic win for President Trump, who has already secured post-Liberation Day agreements with Japan, the United Kingdom, China, Indonesia, and others. Now, with the E.U. signaling de-escalation, the White House appears poised to finalize yet another America First milestone.