EU Pauses Tariffs Amid US Trade Talks

The European Union has suspended its planned retaliatory tariffs on US goods worth about $107 billion for six months, following a political agreement between President Donald Trump and European Commission President Ursula von der Leyen. The US has imposed a 15% tariff on most EU exports, notably impacting industries like wine and spirits, and prompting industry warnings of $2 billion in lost sales and tens of thousands of American job losses. The agreement is not legally binding and leaves major issues unresolved in sectors such as pharmaceuticals, steel, and auto parts, with the EU retaining the right to restore tariffs if commitments are unmet. While the suspension provides short-term stability and an opportunity for further negotiation, dissatisfaction remains among European officials and industry leaders. The EU originally planned the tariffs in response to US duties on steel, aluminum, and cars. Both parties are expected to continue negotiations to reach a more comprehensive trade framework.