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ADVEReadNOWISEMENT
The European Commission will suspend on Tuesday a package of trade countermeasures targeting €93 billions’ worth of American goods which was scheduled to take effect on 7 August, as it continues to negotiate a joint statement formalising the agreement struck by Commission President Ursula von der Leyen and US President Donald Trump on 27 July.
“The EU continues to work with the US to finalise a joint statement, as agreed on 27 July,” EU spokesperson Olof Gill said, adding: “With these objectives in mind, the Commission will take the necessary steps to suspend by six months the EU’s countermeasures against the US, which were due to enter into force on 7 August.”
In line with the agreement reached, the US reduced its tariff rate to 15% last Thursday.
Gill said the step gained the EU immediate tariff relief, “a first important foundation is laid for restoring clarity to EU companies exporting to the US”.
The trade dispute is not over
However the trade dispute between the EU and the US is not over, as both sides still need to negotiate certain points of the agreement that have led to differing interpretations.
Furthermore, the US Executive Order of July 31 does not provide relief to the EU automotive industry as expected (it remains subject to 25% tariffs), nor does it exempt strategic sectors such as aircraft.
As negotiations continue, the Commission should postpone through urgency procedure the retaliation package it adopted against the US tariffs.
It consists in two lists of products that were worth respectively €21 billion and €72 billion and were merged on 24 July after EU member states adopted them, targeting US products such as soyabean, cars, aircraft and Bourbon Whiskey.