EU Defers Two Retaliatory Measures Against U.S. Tariffs by Six Months to Facilitate Trade Negotiations

On Monday, the European Commission declared a six-month delay in enacting two retaliatory tariff measures aimed at the United States. Initially set to commence this week, the measures have been deferred under a bilateral understanding between the European Union and the United States.

A spokesperson for the Commission’s trade division indicated that European Commission President Ursula von der Leyen and U.S. President Donald Trump reached an agreement on tariffs and trade matters on July 27, 2025. The spokesperson highlighted the accord’s role in restoring commercial certainty and stability for citizens and enterprises on both sides of the Atlantic, reaffirming the EU’s commitment to cooperating with Washington to implement the terms of the July agreement. In alignment with this commitment, the Commission confirmed the delay of the retaliatory measures until February 2026.

The deferred actions pertain to the EU’s response to U.S. tariffs on steel, aluminum, and earlier levies—including proposed duties on automobiles—introduced during the Trump administration. On July 24, EU member states overwhelmingly backed a plan to impose retaliatory duties on U.S. imports valued at €93 billion. Before that vote, the Commission had already proposed combining two distinct tariff schedules into a unified package totaling the same amount.

Back in April, the European Union received authorization to implement an initial tranche of tariffs valued at approximately €21 billion. These duties targeted U.S. goods such as soybeans, motorcycles, and jeans. The additional €72 billion in levies, approved in July, focused on industrial sectors including aircraft, automobiles, and electrical machinery.

In anticipation of the August 1 activation date for U.S. tariffs, EU officials and national leaders warned that, absent a satisfactory resolution, reciprocal measures would be launched. On July 23, European Commission representative Olof Gill reiterated the bloc’s readiness to initiate its response on August 7 should negotiations fail.

The European Commission, serving as the EU’s executive body, opted for this strategic delay following extensive talks between von der Leyen and Trump. Their agreement represents a temporary easing of trade tensions between the United States and one of its major trading allies. The previous month, President Trump announced a new trade arrangement with the EU, which included a 15% tariff applied to a wide range of European exports—automobiles among them.

According to the White House, the agreement outlines the EU’s commitment to eliminate numerous tariffs, including all duties on U.S. industrial exports to Europe. Trump further asserted that all 27 EU member nations pledged to purchase $750 billion worth of American energy and invest an additional $600 billion into the U.S. economy. Details concerning the origin and composition of these investments have not been clarified.

The European Commission later clarified that the July accord is purely political in nature and lacks binding legal force. It concluded by stating that, along with immediate steps to implement agreed provisions, both parties would engage in ongoing discussions through established institutional processes to ensure comprehensive execution of the political arrangement.