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May 26, 2025
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Trump delays EU tariffs

The extension, announced by Trump on his Truth Social platform, followed a phone conversation with von der Leyen in which she requested more time to begin formal talks.

US President Donald Trump has agreed to delay the imposition of a sweeping 50% tariff on all imports from the European Union, following a direct appeal from European Commission President Ursula von der Leyen. The deadline, originally set for 1 June, has now been extended to 9 July, providing both sides with a narrow window to launch high-stakes negotiations aimed at averting a transatlantic trade war.

The extension, announced by Trump on his Truth Social platform, followed a phone conversation with von der Leyen in which she requested more time to begin formal talks. “It was my privilege to do so,” Trump wrote. “The Commission President said that talks will begin rapidly. Thank you for your attention to this matter!”

Von der Leyen confirmed the exchange in a post on X, formerly Twitter, expressing appreciation for the US President’s decision. “Good call with @POTUS. The EU and the US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively,” she said. “To reach a good deal, we would need the time until July 9.”

European Commission President Ursula von der Leyen.(Xinhua/IANS)

The announcement marks a temporary de-escalation in a confrontation that had been steadily building. Just days earlier, Trump had launched a blistering attack on the European Union, accusing it of systematically exploiting the United States through a web of tariffs, legal restrictions, and trade practices he described as “unfair and unjustified.”

In another Truth Social post, Trump declared, “The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with.” He alleged that EU trade barriers and taxes had created a US trade deficit of over $250 billion annually, which he labelled “totally unacceptable.”

Trump initially proposed the blanket 50% tariff in April, giving Brussels 90 days to come to the table. However, his recent comments that he was “not looking for a deal” reignited concerns that a compromise could remain out of reach. Despite this, Friday’s phone call with von der Leyen appears to have opened a path — albeit a narrow one — for dialogue.

The European Union has not taken the threat lightly. Trade Commissioner Maros Sefcovic, who recently held meetings with US officials, stressed that any agreement must be based on “mutual respect, not threats.” Brussels has reportedly drawn up a contingency plan that would slap retaliatory tariffs on up to €100 billion worth of American goods if negotiations fail.

Germany’s Finance Minister Lars Klingbeil echoed the need for diplomacy, warning against further provocations. “The US tariffs endanger the US economy just as much as the German and European economy,” he told Bild newspaper. “We don’t need any further provocations, but serious negotiations.”

Trump’s administration has already levied a series of tariffs on EU goods during his second term. These include 25% duties on steel and aluminium, along with a 20% reciprocal tariff on automobile imports, which remains suspended pending negotiations. A baseline 10% tariff on EU goods remains in force.

The economic stakes are considerable. The US recorded a $236 billion trade deficit in goods with the EU in 2024, a figure often cited by Trump to justify his tough stance. However, when accounting for services — where American firms enjoy a strong advantage — the EU estimates the deficit falls to just €50 billion ($57 billion).

With less than two months to resolve the dispute, both sides are now under pressure to avoid a full-scale rupture in one of the world’s largest trade relationships. While von der Leyen’s call appears to have bought time, analysts warn that the tone of Trump’s rhetoric suggests a deep scepticism about the EU’s intentions — and a willingness to act unilaterally if talks stall.

For now, all eyes will be on the negotiating tables in Brussels and Washington. Whether they produce compromise or confrontation will define the future of the transatlantic trade order well beyond July.

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