President Trump has agreed to extend the deadline for negotiating tariffs with the European Union by more than a month. This decision comes after a period of heightened tensions following Trump’s threat to raise tariffs on EU goods to 50%. Last month, Trump initially announced a 20% tariff on most EU goods, which he later reduced to 10% to allow time for negotiations.
Growing frustrated with the slow pace of talks, he threatened on Friday to increase the tariff rate as high as 50% by June 1. However, on Sunday, Trump announced the extension of the deadline to July 9, following what he described as a “very nice” call with Ursula von der Leyen, the European Commission chief. Von der Leyen echoed Trump’s positive assessment of their call, stating that the EU was “ready to advance talks swiftly and decisively.” She mentioned, “To reach a good deal, we would need the time until July 9.” This new date aligns closely with the previous deadline of July 8 that Trump had set before threatening the 50% tariff rate.
Trump has often criticized what he sees as an unfair trading relationship between the US and the EU, despite the EU being one of Washington’s largest trading partners. According to US government data, last year the EU exported over $600 billion in goods to the US while importing $370 billion worth. Trump has argued that tariffs will boost American manufacturing and protect jobs.
Trump delays EU tariff increase
However, many economists warn that increased tariffs could make products more expensive for US consumers. Tariffs are taxes charged on imported goods and are paid by the companies that bring these goods into the US.
Trump’s concerns have mainly focused on trade in cars and agricultural goods with the EU. Earlier this year, some tariffs were paused to allow for negotiations, but a 25% levy on EU steel and aluminum remains in place. During a conversation with reporters at the White House on Friday, Trump expressed impatience with the ongoing negotiations, suggesting that he planned to raise tariffs on all EU goods to 50% by June 1.
Later that day, EU trade chief Maros Sefcovic reiterated the bloc’s commitment to securing a fair deal, following a call with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick. Sefcovic stated, “The EU is fully engaged, committed to securing a deal that works for both.”
Sefcovic added, “EU-US trade is unmatched and must be guided by mutual respect, not threats. We stand ready to defend our interests.” The EU previously threatened to impose a 25% tariff on €18 billion worth of US goods entering Europe but paused these measures.
The bloc is currently considering additional measures against US imports valued at €95 billion. European leaders, including those from France and Germany, have called for a diplomatic solution, cautioning that escalating tariffs would harm both economies.
