Céline Cremer, 31, was reported missing after family and friends lost contact with her in the middle of last month.
A land, river and air search kicked off on June 27 after her car was found unattended in a car park at Philosopher Falls in the state's remote north-west near Waratah, about 130 kilometres west of Launceston.
She was believed to have gone walking in the area, which has since experienced freezing conditions, snow and rain, with only the clothes for a "light day walk".
On Monday, police said they'd called off the operation, which had included officers, State Emergency Service volunteers, specialist swift water rescue personnel, all-terrain vehicles, drones and the Westpac Rescue Helicopter.
"It's obviously a distressing situation, and they're understandably devastated," Commander Stuart Wilkinson said.
"As we suspend the formal search, I extend our thoughts to Céline's family and loved ones at this difficult time".
Cremer had been living in Australia since June last year and travelling through Tasmania in the first part of this year.
She was due to return to Melbourne on the Spirit of Tasmania on June 21 but never made the boat.
Last month, Cremer's sister, Amélie, told 9news.com.au the anxious wait was the "most difficult thing".
"We are helpless here and we just want to know," she said.
"Just open your eyes and if you have time, please for our family, go and search with the police," she said.
"I keep hope to find her, no matter the issue, I just want to know where she is."
After three days of searching, police said they'd received expert advice that the 31-year-old couldn't have survived but kept looking for her.
Last week, they renewed their calls for help to find the Belgian, saying her white Honda CRV had been in the car park since at least June 20 but she might have arrived days earlier.
But the appeal didn't yield a breakthrough, leading officers to announce the suspension of the search on Monday.
"Considerable search efforts have been undertaken in difficult terrain and treacherous weather conditions but unfortunately Céline has not been located," Wilkinson said.
"Expert medical advice has been received that given consideration to poor weather conditions and cool temperatures, Céline could not have survived the conditions she has been exposed to since she was reported missing."
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