President Donald Trump has decided to delay a major tariff hike on European Union goods, giving both sides until July 9 to try and reach a deal. This decision comes after he had shocked markets on Friday by announcing he would move forward with 50% tariffs starting June 1.
Trump’s frustration was growing over what he saw as slow progress in trade talks with the 27-nation European Union. But after a phone call on Sunday with European Commission President Ursula von der Leyen, Trump agreed to hold off. Von der Leyen asked for more time to finalize an agreement, reminding Trump that July 9 had been the original deadline when he first set the 90-day timeline in April.
Trump told reporters after the call, “We had a very nice call, and I agreed to move it.” He added that both sides would now work fast to try and come to terms. Von der Leyen also posted online that she had a “good call” with the U.S. President and confirmed that the EU was ready to move forward quickly.
Tariff Trouble Grows as 12 States Challenge Trump’s Move
Why the Tariffs Matter
Tariffs are taxes that countries place on goods coming from outside their borders. In this case, Trump’s plan was to charge a 50% tax on EU products entering the U.S., which would make those goods more expensive. That could hurt European businesses and affect U.S. buyers too.
Trump believes that the EU has not been fair in trade with the U.S. He’s said many times that American companies and workers are losing out. The sudden tariff threat on Friday caused panic in financial markets. The Dow Jones and European stock markets dropped, and the U.S. dollar lost value.
But once Trump agreed to the delay on Sunday, the situation calmed. The dollar and the euro both went up against currencies seen as safe during uncertain times, like the Japanese yen and the Swiss franc.
Trump’s trade policies have often involved big announcements followed by quick changes. In April, he announced tariffs on several countries, but after seeing how markets reacted, he began favoring talks instead. Since then, the U.S. has made progress with some partners, like Britain, and has continued talks with China.
Tariff-Fueled Trade Tension: Bonded Warehouse Demand Quadruples, Approval Backlogs Hit Six Months
EU Talks Face Bigger Challenges
The talks with the European Union, however, have been slower. Trump has shown open dislike for how the EU handles trade with the U.S., and that tension has made negotiations more difficult. On Friday, Trump declared, “I’m not looking for a deal. We’ve set the deal — it’s at 50%.” That statement worried both businesses and governments.
The U.S. and EU had agreed in early April to work on a deal within 90 days, setting the deadline at July 9. But Trump’s Friday statement seemed to cancel that plan. His decision on Sunday to return to the original deadline gives negotiators another chance.
Behind all this is a deeper disagreement between the U.S. and Europe. Trump’s “America First” approach often clashes with Europe’s more collective style. At the same time, many European countries depend on the U.S. for military protection, which makes their relationship complicated.
Now, with tariffs on hold and a new push for a deal, both Trump and von der Leyen are preparing for intense discussions in the coming weeks.
