E.U. will pause retaliatory tariffs against U.S. as trade talks continue

The European Union announced Monday it was pausing a plan to impose retaliatory tariffs on U.S. goods as it continued trade negotiations with the Trump administration

The European Union announced Monday it was pausing a plan to impose retaliatory tariffs on U.S. goods as it continued trade negotiations with the Trump administration.

In a statement, the European Commission spokesperson for trade said the planned countermeasures against the U.S., which were set to take effect Thursday, would now be suspended for six months.

The announcement helped propel stocks higher Monday, with major indexes all gaining about 1%.

On July 27, Trump announced an agreement with the E.U. — America’s largest trading partner — that included a baseline tariff of 15%, down from a threatened 30%, and a pledge by the bloc to buy $750 billion of U.S. energy products and invest an additional $600 billion in unspecified U.S. projects.

In return, Trump said, the E.U. promised to remove tariffs on U.S. industrial goods.