President Donald Trump has decided to postpone the deadline for tariff discussions with the European Union, granting negotiators over an additional month to seek common ground amid rising trade disputes.
Earlier, Trump had proposed imposing a 20% tariff on a wide array of goods imported from the EU, but subsequently lowered this to 10% as a concession aimed at fostering dialogue. Nevertheless, growing impatience with the negotiation pace led the President to warn last Friday of a potential tariff increase to 50%, effective June 1, if no agreement was reached.
However, in a recent update shared on social media, Trump announced the extension of the tariff deadline to July 9. This decision followed a positive phone call with Ursula von der Leyen, President of the European Commission, whom he described as “very cordial.”
Von der Leyen expressed a similar sentiment, affirming the EU’s readiness to “accelerate negotiations decisively and efficiently,” highlighting a shared commitment to resolving the dispute amicably.
This postponement temporarily eases the trade tensions that have unsettled markets and industries dependent on transatlantic trade. Both parties now face increased urgency to use this additional time productively and prevent further escalation that could have wide-reaching economic consequences.
But, in her own online post, von der Leyen wrote: “To reach a good deal, we would need the time until July 9.”
Trump’s acceptance of that date means the deadline is close to what it was previously. Before threatening the 50% rate, Trump had set a deadline of 8 July for both sides to talk.
Trump has long criticised what he views as an unfair US trading relationship with the EU, despite the bloc being one of Washington’s largest trading partners. Last year, the EU exported more than $600bn (€528bn; £443bn) in goods to the US while importing $370bn worth, according to US government data.
More broadly, the US president has defended his wide-ranging programme of tariffs by arguing they will boost American manufacturing and protect jobs.
But his planned import taxes have thrown the world economy into chaos, and many economist say they will make products more expensive for US consumers. Tariffs are taxes charged on goods bought from other countries, paid by the companies that that bring foreign goods into the US.
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In relation to the European Union, President Trump has voiced particular apprehensions about trade involving automobiles and agricultural products. While certain tariffs were temporarily suspended earlier this year to facilitate ongoing negotiations, a 25% duty on EU steel and aluminum imports remains firmly in effect.
During a press briefing at the White House on Friday afternoon—mere hours before scheduled discussions with EU representatives—Trump announced his intention to escalate tariffs on all European goods entering the U.S. to 50% by June 1. His remarks conveyed clear frustration with the sluggish progress of the talks.
Responding later that day, Maros Sefcovic, the EU’s trade commissioner, reiterated the union’s dedication to achieving a balanced agreement. After holding conversations with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Sefcovic affirmed, “The European Union remains fully engaged and committed to securing a mutually beneficial arrangement.”
He further emphasized, “Trade between the EU and the U.S. is unparalleled and must be governed by reciprocal respect rather than intimidation. We stand prepared to protect our interests vigorously.”
The EU itself has considered retaliatory tariffs and has already paused some of its own countermeasures. It had planned to impose a 25% tariff on approximately €18 billion worth of American imports destined for Europe but temporarily shelved this initiative. Meanwhile, consultations are ongoing regarding potential additional tariffs on U.S. goods valued at roughly €95 billion.
Amid these tensions, European leaders continue to caution against further escalation. France and Germany have both called for diplomatic dialogue, warning that imposing or increasing tariffs would ultimately be detrimental to the economic wellbeing of both sides.