E.U. To Suspend Retaliatory Tariff On U.S. For Six Months As Massive Trade Deal Is Finalized

BRUSSELS (Reuters) — The European Union will suspend its two packages of countermeasures to U.S. tariffs for six months following a deal with U.S. President Donald Trump, a Commission spokesperson said on Monday.

The E.U.-U.S. agreement leaves many questions open, including tariff rates on spirits, and Trump’s executive order last week setting tariffs on most E.U. goods at 15%, which did not include carve-outs such as for cars and car parts.

E.U. officials have said they expect more executive orders to follow soon.

“The E.U. continues to work with the U.S. to finalize a Joint Statement, as agreed on 27 July,” the spokesperson said in a statement.

“With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the E.U.’s countermeasures against the U.S., which were due to enter into force on 7 August.”

The retaliatory tariffs are in two parts: one in response to U.S. steel and aluminium duties, and the other to Trump’s baseline and car tariffs.

(Reporting by Julia Payne; Editing by Toby Chopra)