The European Union took a big step today towards thawing its long-chilled trade relationship with the United States. It has chosen to put on hold planned retaliation measures in response to U.S. tariffs for six months. The suspension will not go into official effect until the middle of next week. This halt gives farmers and their trade counterparts time to develop constructive trade relationships without the hovering threat of retaliation.
The U.S. President Donald Trump and European Commission President Ursula von der Leyen struck a concord. Their discussion paved the way for a new trading agreement. As fate would have it, on July 27 2025, the two leaders crossed paths in Turnberry, Scotland. That’s because they ended up cutting a deal that slapped a 15% tariff on most European goods exported to the U.S.—hitting cars especially hard. This deal is a major win for one of the United States’ biggest trading partners. Its hope is to level the playing field in their $700 billion trade relationship.
At the height of these negotiations, Trump tweeted that he had cut a huge deal. The European Union committed to buying up to $750 billion of U.S. energy. He pointed out that the EU would be putting $600 billion more into the U.S., more than they already currently invest. It is important to highlight that the EU does not possess the authority to compel private companies to buy U.S. oil or grain.
“The EU continues to work with the US to finalize a Joint Statement, as agreed on 27 July,” stated a spokesperson for the EU Commission for trade. This continued partnership is a testament to our collective dedication to make trade more stable.
As a result of these changes, over 140 additional tariffs will begin to be applied on specific shipments. This will affect more than 60 developing countries starting August 7th. At first, Trump wanted to see this implemented as of August 1. While he initially announced it last year, he eventually pushed the date back as the trade war progressed.
The EU’s decision signals a move towards “stability and predictability for citizens and businesses on both sides of the Atlantic,” according to an EU spokesperson. They further elaborated that, “With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the EU’s countermeasures against the US, which were due to enter into force on 7 August.”
As the House and Senate continue to negotiate behind closed doors, they will strive to bring a comprehensive political agreement into legislative language. “Beyond taking the immediate actions committed, the EU and the US will further negotiate, in line with their relevant internal procedures,” noted an EU statement.