EU halts 93-bln-euro tariffs on U.S. goods despite members' dissent

The European Commission on Tuesday formally suspended planned retaliatory tariffs on U.S. imports worth 93 billion euros (about $108 billion U.S. dollar), just days before they were due to take effect.

The commission's trade spokesperson, Olof Gill, said the decision was adopted under an emergency procedure and will require formal approval by a simple majority of member states within two weeks. The tariffs were scheduled to take effect on August 7.

"The Commission has today adopted necessary legal procedures to suspend the implementation of our European Union (EU) countermeasures," Gill told a press briefing in Brussels, adding that the regulation would be published in the EU's official journal later the same day.

The spokesperson added that the suspension would remain in place for six months, during which implementation of the broader understanding would continue. If commitments are not met, Gill noted, the EU retains the right to reactivate its countermeasures.

Ahead of the announcement, there has been mounting criticism from key member states, including France and Germany. German Vice Chancellor and Finance Minister Lars Klingbeil has expressed frustration at what he described as a "weak" negotiating stance by the EU during the trade talks with the United States.

"I think we were too weak. We can't be satisfied with the result that was achieved," Klingbeil said, referring to the agreement reached late last month between European Commission President Ursula von der Leyen and U.S. President Donald Trump.

Under the deal, most EU imports to the United States will face a 15 percent tariff, while the bloc has pledged to purchase more American energy products and increase investment in the U.S. market.

The deal, portrayed by Brussels as the "least bad option," leaves in place punitive 50 percent U.S. tariffs on European steel and aluminum. However, the EU states that Brussels and Washington will work to reduce that number, and that they will be replaced by a quota system after 1 August.

Former EU Foreign Policy Chief Josep Borrell on Monday criticized the latest EU-U.S. trade deal as "very bad," warning that the terms not only damage Europe's economic interests but expose its deep political subordination to Washington.

"From a political standpoint, the result is very bad. It gives the impression of weakness and submission to Trump's demands. And it shows Europe can hardly be considered a strategically autonomous actor," Borrell told EUobserver.

He noted that the fact EU leaders are now struggling to arrange formal meetings with their U.S. counterparts, and that negotiations between Trump and von der Leyen reportedly lasted only about an hour, suggests the agreement was essentially a take-it-or-leave-it package.

Borrell also highlighted that many of the additional commitments in the deal are simply unfeasible for the EU to fulfill. For example, the promise to import $750 billion worth of natural gas from the U.S. over three years is unrealistic, as gas purchases are made by private companies, not the EU itself.

He also pointed out similar contradictions in the defense sector: while the EU stresses the need for an independent European defense industry, it simultaneously commits to purchasing all military equipment from the U.S. – a fundamentally contradictory stance.

Analysts suggest that, given the backlash the EU Commission has faced so far and the amount of detail still needing to be worked out, the next phase of negotiations is likely to drag on for some time. Delaying retaliatory tariffs rather than cancelling them could provide the EU with more room to maneuver in future talks with the United States.

(With input from Xinhua)