Perhaps someone can give a definitive answer to your question, but I can say that I have yet to see an AI nation remove a Trade Embargo.
Get AI to stop the Trade Embargo
I made a game where I played against AI only. I went to war with a nation or two and a couple hours and days later, almost every nation put a Trade Embargo on me and it never came off. Is there a way to stop the trade embargo, like being peaceful and what not?
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Try to make yourself more popular. Attacking dreadful nations, trading with others, and declaring war before attacking are all things that help you become popular or at least not become less popular.
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"Having an army is good. Having the insight of an enemy's is better"
In the last two 1.0 games played, I have found that when an Inactive Player imposes a Trade Embargo against me, I can have it removed by granting that nation ROW. By the end the second day following, the Inactive player has returned to Peace with me. As games continue, I will check further and see how my Reputation with the Inactive players might reflect the change in status with them. I will also try this out with AI nations and see if it seems to hold true with them as well.
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