European and American reach preliminary political agreement, EU announces the suspension of retaliatory tariffs on the US for six months.

On Monday, the European Commission announced that it would temporarily suspend the retaliatory tariffs planned for the United States for a period of six months. The tariff measures that were supposed to take effect on Wednesday (August 7) will be formally postponed, marking a step towards easing tensions in the trade relations between Europe and the United States. A spokesperson for EU trade affairs stated, "European Commission President von der Leyen and US President Trump have reached an agreement on tariffs and trade issues." He said that the agreement restored stability and predictability between citizens and businesses on both sides of the Atlantic. According to the agreement, the EU and the US are in the final stages of coordinating a joint statement and are committed to fully implementing the political consensus reached by both parties once internal processes are completed. In line with this process, the European Commission will take necessary measures to temporarily suspend the retaliatory tariffs against the United States that were set to take effect on August 7, with a duration of six months. While the EU has made its position clear, the White House has yet to respond to the statement. The decision by the EU is seen as a significant concession to the US, following weeks of negotiations between the Trump administration and von der Leyen's team on trade issues. Trump announced last month that a new trade agreement had been reached with the EU, which would impose a 15% tariff on most European goods imported to the US, including key products like cars. In exchange, the US government stated that the EU would eliminate all tariffs on American industrial products. Furthermore, Trump claimed that the EU had committed to purchasing $750 billion worth of American energy products and increasing investments in the US by $600 billion on top of current levels. However, it is unclear which specific companies or organizations will make these investments, and the EU, as an economic bloc, does not have the power to compel companies to purchase American energy or food. The EU also emphasized that the agreement reached in July is a "political agreement and is not legally binding." The EU statement noted, "In addition to implementing the current commitments, the EU and the US will continue to negotiate the details of the agreement according to their internal procedures to ensure comprehensive implementation in the end." This statement comes as the Trump administration's trade agenda enters a critical week. After multiple delays, Trump last week postponed the implementation of the new round of tariffs on goods from over 60 countries, which were originally scheduled to take effect on August 1, until August 7.