Economy January 23, 2026

EU Extends Suspension of $109 Billion Trade Sanctions Against US for Six More Months

European Commission opts to maintain pause on retaliatory tariffs amid easing US trade threats

By Avery Klein
EU Extends Suspension of $109 Billion Trade Sanctions Against US for Six More Months

The European Commission announced its intention to prolong the suspension of an extensive set of EU trade countermeasures against the United States, valued at approximately 93 billion euros ($109.19 billion). Initially planned to commence in early February, these measures will remain paused for an additional six months following the cooling of recent US trade tensions, particularly after a halted tariff threat related to Greenland acquisition talks.

Key Points

  • The European Commission intends to suspend EU trade sanctions against the US valued at 93 billion euros for six more months, delaying their implementation from February 7 onward.
  • These retaliatory measures were initially devised during trade negotiations and were put on hold after a joint trade agreement in August 2025 between the EU and US, demonstrating a diplomatic thaw.
  • US President Trump's tariff threat linked to Greenland sparked consideration of these countermeasures, but subsequent threat withdrawal led to continuing the suspension.
  • The Commission retains the right to reactivate these tariffs if future trade conflicts arise, maintaining negotiation leverage.

The European Commission declared on January 23 that it proposes to maintain the suspension of a substantial EU retaliatory trade package targeting the United States for an additional six months. This package, worth 93 billion euros (equivalent to $109.19 billion), was initially prepared during the first half of the previous year amid ongoing EU-US trade negotiations.

Originally, the EU intended for these countermeasures to take effect on February 7, but they were placed on hold after Brussels and Washington jointly agreed in August 2025 to pause retaliation measures for six months. This strategic pause coincided with a period of cooperative dialogue between the two sides.

The recent threat by then US President Donald Trump to impose tariffs on eight European nations in response to US efforts to acquire Greenland had appeared to activate the potential relevance of this EU package. However, with the withdrawal of these US tariff threats, the European Commission found no immediate need to enact its retaliatory measures.

Commission spokesman Olof Gill emphasized the return to collaborative implementation of the joint EU-US trade statement following the de-escalation of tensions. Gill stated that the Commission is preparing to officially propose extending the suspension past the February 7 expiry date, thus continuing the hold on these countermeasures for another six months.

He clarified that while the measures remain suspended, the EU retains the option to reactivate them should future circumstances warrant such action, preserving the tools as leverage if necessary.


The ongoing suspension of these measures plays a significant role in transatlantic trade relations. It impacts sectors dependent on US-EU trade flows, including industrial goods and agricultural products, which could be affected if tariffs were reinstated.

Risks

  • Potential re-escalation of trade tensions if US or EU impose new tariffs, which could disrupt trade flows and affect industries linked to transatlantic commerce.
  • Continued uncertainty around trade policies may impact companies in manufacturing, agriculture, and export-heavy sectors dependent on stable US-EU relations.
  • If suspensions are lifted abruptly, markets and businesses could face rapid tariff implementation, causing supply chain adjustments and financial impact.

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