EU Reaches Initial Political Agreement with US; EU Announces Temporary Suspension of Retaliatory Tariffs for Six Months

Our correspondent learned that on Monday, the European Commission announced that it would temporarily suspend its retaliatory tariffs against the United States, effective for six months. The originally scheduled tariffs, set to take effect on August 7th, will be officially delayed, marking a step towards easing tensions in transatlantic trade relations.

A statement by the EU's Trade Commissioner noted that "the European Commission President von der Leyen and US President Trump have reached an agreement on tariffs and trade." He emphasized that this agreement restored "stable and predictable conditions for citizens and businesses across the Atlantic."

According to the agreement, the EU and the US are currently coordinating on releasing a joint statement and committed to implementing their political consensus once internal procedures are completed. To facilitate this process, the European Commission will take necessary measures to temporarily suspend the originally scheduled tariffs against the US, effective for six months.

Although the EU has already expressed its stance, the White House has not yet responded to this statement. The EU's decision is seen as a significant concession to the US side, following weeks of negotiations between Trump's government and von der Leyen's team.

In June, Trump announced that he had reached a new trade agreement with the EU, under which most European goods imported into the US would be subject to a 15% tariff, including key products such as cars. In exchange, the US government agreed to eliminate all tariffs on EU industrial goods.

Additionally, Trump claimed that the EU had committed to purchasing $75 billion worth of US energy products and increasing investments in the US by an additional $60 billion. However, it remains unclear which companies or institutions would be involved in these investments, as the EU does not have the authority to compel European companies to purchase US energy or agricultural products.

The EU also emphasized that this agreement "is a political agreement and lacks legal binding force." The EU statement noted that "except for fulfilling current commitments, the EU and the US will continue to consult on the agreement's content to ensure its full implementation." This declaration was released at a critical juncture in Trump's trade agenda.

As this declaration was issued, Trump's government was entering a key week in its trade schedule. After multiple delays, Trump again postponed the next round of tariffs on over 60 countries' goods, originally set to take effect on August 1st and now scheduled to start on August 7th.