EU Pauses Massive Tariff Package Against the US

The European Commission plans to suspend a €93 billion ($109.19 billion) package of retaliatory tariffs against the United States for another six months, holding off on a major trade escalation that was set to begin on February 7.

This decision comes after a recent easing of trade tensions between the two economic powers.

A €93 Billion Weapon on Standby

The retaliation package was originally drafted in the first half of last year while the European Union and the United States were deep in trade negotiations. The measures were first put on hold for six months when Brussels and Washington reached a joint statement on trade in August 2025.

According to Commission spokesman Olof Gill, the Commission will now officially propose to "roll over our suspended countermeasures" for an additional six-month period.

This move keeps a significant financial threat off the table but demonstrates the EU's readiness to act if trade relations sour again.

From Greenland Threats to De-escalation

The EU's tariff package recently regained prominence after US President Donald Trump threatened to impose new tariffs on eight European countries. The threat was linked to Washington's push to acquire Greenland. Had Trump proceeded, the EU's pre-prepared retaliation package would have been a ready-made response.

However, with the US backing down, the EU is reciprocating.

"With the removal of the tariff threat by the US we can now return to the important business of implementing the joint EU-US statement," Gill explained.

Suspended, Not Canceled: EU's Future Leverage

Officials were quick to clarify that this suspension is not a cancellation. The EU is strategically keeping its options open, ensuring it retains leverage in any future disputes.

"Just to make absolutely clear — the measures would remain suspended," Gill stated. "But if we need them at any point in the future, they can be unsuspended."

This approach allows for diplomatic progress while ensuring the EU can respond swiftly to any new protectionist measures from Washington.