Trump Delays Major Tariff on European Union Until July 9, Citing Progress in Talks

In a significant development for global trade, former US President Donald Trump has agreed to postpone the implementation of a hefty 50% tariff on European Union imports. The decision came following a phone conversation with European Commission President Ursula von der Leyen, who reportedly assured that negotiations between the two sides will progress swiftly during this extended period.

Tariff Delay Signals New Trade Talks

Trump, posting on his Truth Social platform, shared details of the exchange:

"I received a call today from Ursula von der Leyen... requesting an extension on the June 1st deadline... I agreed to the extension — July 9, 2025. It was my privilege to do so... talks will begin rapidly."

The tariff threat, initially scheduled to take effect on June 1, was part of Trump's broader pushback against what he described as "difficult" negotiations with the EU. He had previously expressed frustration over the lack of progress in trade talks, accusing Brussels of stalling.

Investor Caution Remains Despite Tariff Extension

Markets reacted negatively to the original tariff announcement, with both US and European indexes ending lower last Friday. The delay may offer temporary relief for investors and businesses alike, though uncertainty remains as the new July deadline looms.

European Commission President von der Leyen also commented on the call, emphasising the strength and importance of the transatlantic trade relationship.

"We had a good call... The EU and the US share the world’s most consequential and close trade relationship," she posted on social media.

US-EU Trade Deficit Details

According to data from the U.S. Trade Representative, the US imported $605.8 billion worth of goods in 2024 from the EU, marking a 5.1% increase from the previous year. Exports to the EU totalled $370.2 billion, leading to a growing trade deficit of $235.6 billion up nearly 13% from 2023.

While the EU was previously facing a 20% tariff as part of earlier reciprocal trade measures, Trump’s more aggressive 50% threat would affect around $321 billion in goods trade. As per news reports, such a tariff could shrink the US GDP by about 0.6% and increase domestic prices by over 0.3%.

Read More: Trump Tells Apple Not to Expand Production in India Amid Trade Tensions: Report.

Conclusion

As the new July 9 deadline approaches, all eyes will be on the progress of US-EU trade negotiations. While the delay offers temporary relief for businesses and markets, the underlying tensions remain unresolved. Investors, exporters, and policymakers should prepare for continued volatility and closely monitor developments in the coming weeks. A cooperative breakthrough could prevent economic disruption.

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