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.
“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.
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:
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:
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 trillionAdd 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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Not even close to being tired of winning.
MAGA 🇺🇸
we’re tired of your party drinking and driving the economy off a cliff
European Commission President Ursula von der Leyen and U.S. President Donald J. Trump struck a new tariffs and trade agreement, aiming to restore “stability and predictability” for transatlantic businesses and citizens. foremost payonline
The world is getting ready to let down the US, get rid of its treasury bills, and let America manage in a closed circuit with this unstable president that no one can trust.
In two years, the world will be able to completely dispense with American products.
Whoa Almux, if there’s one thing I’ve learnt about economics is that you should never make predictions without a hell of a lot of data to back you up.
When I make a prediction I’d bore your tits off with a long winded explanation backed up by voluminous amounts data, and I’ve been in the game for more than forty years.
OK, I’ve got a little bit of time to expand on some ideas.
I don’t think there’s going to be a rush towards the doors over the purchase or divestment of US treasury bills because there needs to be an alternative. The European countries seem to be moving towards an alternative world currency to the US but they are not there yet.
The Chine yuan is based on a terribly opaque economy. And this is how it goes. China predicts an annualised growth rate of say 5 percent. And twelve months hey presto, this is what they end up with…yeah right.
There is a caveat with the yuan as there are some big players in the BRICS trading group.
However there’s a caveat with the US greenback as well. When you start mucking around with the accuracy of your labour statistics you are playing with fire and by gees YOU will get burnt.
What I mean is that the sacking the head of Labor Statistics is sheer lunacy laced with sheer cunning. This is all about gaining control of the source of these statistics that are are used by the Federal Reserve to help determine US interest rates.
Now if the markets start to doubt these outcomes it will put further pressure on the ability of the Fed to issue long term bond rates.
And there it is my followers of the evil art of economics. You see economics is based on psychology. It’s all about how people think and remember (as my old Professor used to say) the western capitalist system is based on greed. It’s nothing to do with communism (and I could bore you silly with that idiotic system) it’s about how people think!
So what going to happen with the America’s influence in the world? I suspect it will be a gradual easing is the influence and that of the greenback.
However Mr Trump’s erratic economic policies will speed up this process.
And a second point needs to be made and it’s based on a joke that does the rounds amongst economists and it goes like this. If you lined all the economists and placed them side by side they’d never come to a conclusion.
Good night all.
As clearly explained in the MDN Take above, it’s the American MARKET that you can’t dispense with, bless your heart.
Just watch, stable geeenyus. The US has been deficit spending for decades trying to sustain its luxe lifestyle. So you have a current generation that is to lazy to work, underuneducated and brainwashed, who manufacture almost no consumer goods domestically.
Without foreign investment, foreign labor, and foreign imports, the USA would fall exactly like Rome did.
Since you elected Nero to run your country like a wannabe dictator, you will see the decline rapidly.
Good luck with that TDS, bless your heart.
Today, real Americans are loving life and our America First president.
Nobody gives a shyt what Dump does with his bigly flag in the comfort of his own bedroom. But even a low level thinker like yourself should care greatly about the financial instability this administration is in the process of creating. Financially illiterate Dump is retracing the same stupid steps that the GOP did to usher the world into the Great Depression.
But of course, you refuse to even study this stuff so you’ll follow an idiot schoolyard bully who talks tough rather than anybody in class who actually gets good grades.
Good luck for the soft landing when all your dear leader can offer is random consumer import taxes. He can’t and won’t deliver JeffYFiles, tax returns, ends to wars, balanced budgets, long term social security funding, a workable national healthcare plan, nor an overhaul to immigration laws. All stuff promised and not delivered.
But Musky got his tax cuts. He’s the reason Dump was installed, and he’ll be the reason Dump’s legacy be trashed.