EU concedes to President Trump; will delay planned U.S. tariffs for six months

U.S. President Donald Trump meets with European Commission President Ursula von der Leyen, in Turnberry, Scotland, Britain, July 27, 2025. (photo: Evelyn Hockstein | Reuters)
The European Union will pause its planned countermeasures against President Donald Trump’s tariffs, originally scheduled to start Thursday. This suspension represents a concession from the 27-member bloc, a major U.S. trading partner.
Erin Doherty for CNBC:
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“On 27 July 2025, European Commission President Ursula von der Leyen and US President Donald J. Trump agreed a deal on tariffs and trade,” the EU Commission spokesperson for trade said in a statement.
The spokesperson touted the agreement as restoring “stability and predictability for citizens and businesses on both sides of the Atlantic.”
“The EU continues to work with the US to finalise a Joint Statement, as agreed on 27 July,” the spokesperson said.
“With these objectives in mind, the Commission will take the necessary steps to suspend by 6 months the EU’s countermeasures against the US, which were due to enter into force on 7 August.”
The pause on the countermeasures is expected to formally take effect Tuesday.
The delay represents a concession from one of the United States’ largest trading partners, following weeks of negotiations between Trump and von der Leyen.
Trump last month announced a trade deal with the EU that included 15% tariffs on most European goods to the U.S., including automobiles.
As part of the deal, the White House said the EU “will remove significant tariffs, including the elimination of all EU tariffs on U.S. industrial goods exported to the EU.”
Trump also said that the 27-member bloc agreed to buy $750 billion worth of U.S. energy and invest an additional $600 billion into the U.S. above current levels.

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MacDailyNews Take: This always was a fait accompli.
The worst thing you can possibly do in a deal is seem desperate to make it. That makes the other guy smell blood, and then you’re dead. The best thing you can do is deal from strength, and leverage is the biggest strength you can have. Leverage is having something the other guy wants. Or better yet, needs. Or best of all, simply can’t do without. – Donald Trump, The Art of the Deal, 1987
As we wrote back in April:
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The United States of America is the far and away No.1 economy on this planet, with nominal GDP of $30.34 trillion. China is a distant number two with $19.53 trillion, followed by Germany ($4.92T), Japan ($4.39T), and India ($4.27T).
If countries want unfettered access to sell their goods and services into the world’s preeminent economy, they should, at the very least, provide unfettered American access into their far lesser economies. (In pure business terms, they should actually pay for the privilege of selling in America’s rich environment).
Any country that wants to try to forgo America by keeping or increasing their import tariffs, have at it. They’ll be begging for access sooner than later.
Anyone who thinks Americans can’t make or get whatever they want/need without importing it from any other country, failed history 101.

In 2024, the EU’s nominal GDP was reported by the World Bank to be $19.423 trillion; China-sized, but still dwarfed by the American economy.

As we wrote in May:
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Here is a list of the top 5 consumer markets by country, based on household final consumption expenditure (HFCE) in U.S. dollar value (consumer spending):
1. United States: ~$18.8 trillion
2. China: ~$7.0 trillion
3. Japan: ~$2.5 trillion
4. Germany: ~$2.3 trillion
5. India: ~$2.2 trillion
Add up the 2nd – 5th consumer markets on earth and they still total $4.4 trillion less than the U.S.

Annualized estimates based on quarterly figures suggest the EU’s total HFCE for 2024 is roughly $10 trillion, though exact annual figures are not yet finalized.

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