EU Proposes Continued Suspension of $109 Billion Trade Retaliation Against the U.S.

The European Commission plans to extend the suspension of a $109 billion retaliatory trade measure against the U.S. by another six months. Initially developed during EU-U.S. trade negotiations last year, the move allows time for continued dialogue following the U.S. removal of tariff threats.

The European Commission announced its intention to propose a six-month extension on suspending an EU retaliatory trade package against the U.S., valued at €93 billion ($109.19 billion). This decision coincides with an agreement reached between Brussels and Washington during their August 2025 trade discussions.

The package, initially designed to counter potential U.S. tariffs under President Donald Trump's administration, has remained inactive. Trump's recent threats to impose tariffs on eight European countries, due to geopolitical tensions over Greenland, brought attention back to the EU's retaliatory options.

According to Commission spokesman Olof Gill, with the threat from the U.S. now lifted, both parties are focusing on implementing their joint trade statement. Gill emphasized that while the countermeasures remain suspended, they could be reinstated if necessary in the future.

(With inputs from agencies.)