Following the establishment of a trade agreement between the EU and the USA, the European Commission has opted to halt the increased tariffs that were set to be applied on American products.
This announcement was made by Olof Gill, the EU’s trade spokesperson, to the AFP news agency.
The heightened tariffs were scheduled to commence on August 7.
These tariffs were to target American goods valued at $107 billion, or approximately 690 billion kroner.
“The Commission has today enacted the necessary legislative measures to pause the implementation of our countermeasures, which were set to begin on August 7,” stated Olof Gill.
The EU’s increased tariffs were anticipated to impact a diverse array of American products, including soybeans, whiskey, cars, and airplanes.
With the suspension of these tariffs, many American goods entering the EU will now face tariffs of under two percent, while agricultural products will encounter somewhat higher rates.
On July 27, the EU and USA entered into a framework trade agreement, jointly announced by President Donald Trump and European Commission President Ursula von der Leyen.
This agreement outlines a 15 percent tariff on goods exported from the EU to the USA.
The 15 percent tariff rate is significantly lower than the 30 percent rate that Trump had previously threatened for American imports from the EU.
The EU’s initial countermeasures prior to the trade agreement included varying tariff rates on different American goods, with some potentially facing tariffs up to 30 percent.
An anonymous senior EU official indicated that the increased tariffs could be reinstated if necessary.
“We have put them on hold, and we can always reintroduce them if needed, so the suspension can always be lifted,” he informed AFP.
The American tariff of 15 percent on EU goods is set to take effect on Wednesday.
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