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05-08-2025
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EU pauses retaliation in lopsided US trade deal

Date: 05-08-2025
Sources: cbsnews.com: 1 | economist.com: 1 | scmp.com: 1
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Source: economist.com

Summary

The European Union has paused planned retaliatory tariffs on U.S. goods for six months after reaching a framework trade deal with the Trump administration that imposes a 15% tariff on most EU exports. While the move aims to restore stability and provide time to finalize implementation details, it highlights the EU’s limited leverage under U.S. tariff pressure and its choice of pragmatism over confrontation to contain economic damage. The EU retains the right to reinstate countermeasures—previously prepared for a broad range of goods—if the agreement unravels, reflecting a cautious, damage-control approach amid asymmetric negotiating dynamics.

Key Points

  • EU delays retaliatory tariffs for six months to finalize a deal.
  • Framework agreement imposes a 15% U.S. tariff on most EU goods starting August 8.
  • EU suspends broad countermeasures but keeps option to reinstate them.
  • Critics call the deal lopsided, revealing limits of EU leverage against U.S. pressure.

Articles in this Cluster

European Union delays retaliatory tariffs for 6 months after reaching deal with the U.S. - CBS News

05-08-2025

The European Union will delay planned retaliatory tariffs on U.S. goods for six months, pushing their start to at least March, to allow time to implement a recent U.S.-EU trade deal. The agreement, reached July 27 by European Commission President Ursula von der Leyen and President Trump, includes a 15% tariff on most EU goods but lacks EU-sought exemptions for car parts and wine/spirits. The EU says the pause, effective Tuesday, aims to restore stability and predictability while both sides finalize the agreement’s details. CBS News sought White House comment.
Entities: European Union, United States, Ursula von der Leyen, President Trump, European Commission • Tone: analytical • Sentiment: neutral • Intent: inform

The trade deal with America shows the limits of the EU’s power

05-08-2025

The EU struck a lopsided trade deal with President Trump that raises tariffs on European goods without reciprocal measures, prompting criticism and Macron’s remark that Europe wasn’t “feared” enough. Despite the humiliation, Brussels chose pragmatism: making concessions to keep Trump engaged while containing economic damage. The episode underscores the limits of EU leverage against U.S. tariff pressure and its preference for prudence over confrontation to protect its economy in the near term.
Entities: European Union, United States, Donald Trump, Emmanuel Macron, tariffs • Tone: analytical • Sentiment: negative • Intent: analyze

EU suspends retaliatory tariffs on US goods worth US$107 billion, keeps reinstatement option | South China Morning Post

05-08-2025

The European Union has suspended its planned retaliatory tariffs on US goods worth €93 billion (US$107 billion) after reaching a framework deal with the Trump administration. The EU had prepared broad countermeasures on items like soybeans, planes, cars, and whisky, but paused them as part of the agreement. Under the deal, EU exports to the US will face a 15% tariff starting August 8—higher than previous rates but well below the 30% threatened earlier. The EU retains the option to reinstate countermeasures if the agreement falters.
Entities: European Union, United States, Trump administration, retaliatory tariffs, EU-US framework deal • Tone: analytical • Sentiment: neutral • Intent: inform