EU suspends retaliatory tariffs as US delays car duty rollback

The European Commission announced it will suspend retaliatory tariffs on €93 billion worth of US goods, even as Washington has yet to fulfill a key element of a recent trade accord—cutting duties on EU car exports.

The decision comes just days before the EU’s countermeasures were set to take effect on August 7, following escalating tensions over President Donald Trump’s sweeping tariffs, which have disrupted €370 billion worth of EU exports, Caliber.Az reports, citing foreign media.

The move follows a tentative “framework deal” reached on July 27 between the world’s two largest trading blocs. Both sides hailed the agreement, which includes the introduction of a flat 15% US tariff on most EU goods starting August 8. However, despite an executive order issued by Trump confirming the 15% levy, EU car exports remain subject to a steep 27.5% tariff, up from the standard 10%.

“On 31 July 2025, the US issued an executive order confirming the first step in the implementation of the agreement, namely the introduction on 8 August of a single, all-inclusive 15% tariff on goods from the EU,” said Olof Gill, spokesperson for the European Commission on trade.

“The other elements of the 27 July agreement are now to be implemented by the US. This includes the commitment to decrease its Section 232 tariffs on cars and car parts imported from the EU to a 15% ceiling rate, as well as the specific treatment agreed for certain strategic products (e.g. aircraft and aircraft parts),” he added.

“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.”

Despite confusion surrounding elements of the agreement—including steel and aluminum tariffs, digital taxes, and whether the US will honor its full commitments—the Commission’s proposal to suspend the tariffs is expected to pass. The measure would require a qualified majority of EU countries to block, which analysts say is highly unlikely.

The suspended EU tariffs would have targeted American cars, aircraft, machinery, soybeans, and diamonds.

By Vafa Guliyeva