Published by Global Banking & Finance Review®
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe EU plans to suspend a $93 billion trade retaliation package against the US for six months, allowing focus on joint trade agreements.
BRUSSELS, Jan 23 (Reuters) - The European Commission said on Friday it would propose suspending for another six months an EU package of retaliatory trade measures against the U.S. worth 93 billion euros ($109.19 billion) that would otherwise kick in on February 7.
The package, prepared in the first half of last year when the European Union was negotiating a trade deal with the United States, was put on hold for six months when Brussels and Washington agreed on a joint statement on trade in August 2025.
U.S. President Donald Trump's threat last week to impose new tariffs on eight European countries over Washington's push to acquire Greenland had made the retaliatory package a handy tool for the EU to use had Trump followed through on his threat.
"With the removal of the tariff threat by the U.S. we can now return to the important business of implementing the joint EU-US statement," Commission spokesman Olof Gill said.
The Commission will soon make a proposal "to roll over our suspended countermeasures, which are set to expire on February 7," Gill said, adding the measures would be suspended for a further six months.
"Just to make absolutely clear -- the measures would remain suspended, but if we need them at any point in the future, they can be unsuspended," Gill said.
($1 = 0.8517 euros)
(Reporting by Jan StrupczewskiEditing by Gareth Jones)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and upholding EU treaties. It plays a key role in shaping EU policies and ensuring compliance among member states.
Foreign exchange, or forex, refers to the global marketplace for trading national currencies against one another. It is essential for international trade and investment, allowing businesses and individuals to convert currencies.
Retaliatory trade measures are actions taken by a country in response to trade barriers or unfair practices imposed by another country. These can include tariffs or quotas aimed at specific goods from the offending nation.
The trade package is significant as it represents the EU's strategic response to trade tensions with the US. It reflects the EU's commitment to protect its economic interests while seeking to maintain cooperative trade relations.
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