Retaliatory Tariffs on Steel, Aluminum, and Automobiles Deferred
Efforts to Ease Trade Tensions and Secure Room for Negotiations
The European Union (EU) has decided to postpone its retaliatory tariffs against the United States, which were scheduled to take effect on August 7, for six months. This move suggests that the EU is placing more emphasis on negotiation rather than trade pressure and indicates a possibility of responding flexibly to US demands during trade talks.
On August 4 (local time), a spokesperson for the European Commission issued a statement, saying, "On July 27, President Trump and European Commission President Ursula von der Leyen reached an agreement on tariffs and trade," and added, "This measure will provide stability and predictability for citizens and businesses on both sides." This follows the outcome of negotiations between US President Donald Trump and European Commission President Ursula von der Leyen.
The spokesperson continued, "In accordance with the agreement, both sides are continuing to finalize a joint statement, and as a result, the Commission is postponing the implementation of retaliatory measures against the United States for six months."
Previously, the EU had been preparing retaliatory tariffs against the US worth approximately 93 billion euros, targeting steel and aluminum, automobiles, and industrial goods. However, after President Trump announced a trade agreement with the EU last month, imposing a 15% tariff on most European imports while completely eliminating EU tariffs on American industrial goods, the EU also took a conciliatory step. While the EU as individual countries trails China, Canada, and Mexico, as a bloc of 27 member states, it is the United States’ largest trading partner.
Reuters assessed that the EU's decision was a strategic move aimed at easing trade tensions, restoring stability, and preserving room for future negotiations.
However, there are doubts about whether President Trump's announced commitments to purchase $750 billion worth of US energy and invest an additional $600 billion in the United States will actually be fulfilled. This is because the EU does not have the authority to force private companies to purchase US crude oil or grain.
The EU also emphasized that the agreement is a "political agreement without legal binding force," and stated, "We will conduct further negotiations to fully implement the agreement in accordance with future internal procedures."
This announcement comes as the Trump administration's trade policy reaches a new turning point. President Trump, after delaying the implementation of tariffs for several weeks, postponed them again last week. He pushed back the start date for new tariffs on more than 60 countries from August 1 to August 7.
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