Overview

• The European Commission will suspend planned countermeasures against US imports for six months, delaying duties set to start on August 7.
• Negotiators struck the deal on July 27 after months of retaliatory tariff threats from both sides, settling on a mutual 15% duty cap.
• Under the agreement, the US imposed a 15% tariff on most EU imports, including automobiles, while the EU agreed to remove all duties on American industrial goods.
• The EU pledged to purchase $750 billion of US energy and to boost its investment in the US by $600 billion, although private companies are not legally bound to meet those targets.
• Officials from both sides are now drafting a formal text to convert the political accord into a binding trade treaty covering key sectors such as steel and automobiles.