The European Union officially announced on Friday (February 6) in an official gazette that it would once again extend the suspension of tariffs on $930 billion (approximately $1.098 trillion) worth of American imports for another six months. This move marks a temporary easing of the brinkmanship in the US-EU trade war triggered by the sovereignty dispute over Greenland.
According to the regulations published in the EU’s official gazette, the tariff suspension measure, originally set to expire this Saturday (February 7), will now be extended until August 6, 2026.
The list of tariffs covers a wide range of products, including American products such as corn, dishwashers, motorcycles (such as Harley-Davidson), and some aircraft components.
EU Commission spokesperson Olof Gill stated: “Our goal is to resolve differences through diplomatic means rather than getting caught up in a vicious cycle of retaliatory tariffs.”
According to Reuters, the direct incentive for this extension was a change in the stance of US President Donald Trump. In January of this year, Trump threatened to impose punitive tariffs of 10% (potentially rising to 25%) on eight European countries, including Germany and France, due to their opposition to the US purchasing Greenland.
Following a meeting with NATO Secretary-General Mark Rutte in Davos, President Trump announced that a framework agreement regarding the island was in sight, leading to the withdrawal of the tariff threat. In response, the EU decided to adopt an “equivalent extension” strategy, effectively easing the once tense trade relations between the US and the EU.
Upon hearing the news, the markets reacted positively, with US manufacturers reliant on exports to Europe, such as Whirlpool, seeing a rise in their stock prices.
Reports from the Financial Times and Politico indicate that there were heated debates within the EU on this matter. French Finance Minister Roland Lescure had advocated for activating the EU’s “Anti-Coercion Instrument”. In contrast, moderates led by German Chancellor Friedrich Merz were concerned that implementing tariffs would disrupt the fragile automotive supply chains.
European Parliament President Roberta Metsola confirmed to reporters on Thursday that with tensions easing, the Parliament is prepared to resume the approval process for the US-EU trade agreement known as the “Turnberry Deal,” which was frozen due to the tariff threats.
The agreement was initially reached in Scotland by President Trump and President of the European Commission Ursula von der Leyen. The EU had previously agreed to suspend the implementation of retaliatory tariffs on US goods valued at around $1.098 trillion for six months, which was set to expire this Saturday.