Trump delays EU tariff hike following talks with EU Commission head, opening space for renewed trade negotiations.
In a significant policy shift, President Donald Trump has delayed the implementation of steep tariffs on the European Union until July 9, following a direct call with European Commission President Ursula von der Leyen. The move signals a temporary easing of trade tensions between Washington and Brussels, providing a narrow window for negotiation.
Trump Reverses Course on EU Tariff Threat
Just two days after declaring that trade talks with the European Union were “going nowhere” and accusing the bloc of being “very difficult to deal with,” President Trump announced a delay in his proposed tariff hike. Initially slated to take effect on June 1, the tariffs would have imposed a 50% duty on EU imports. However, following a Sunday evening phone call with von der Leyen, Trump agreed to postpone the implementation.
Announcement Made via Truth Social
The policy reversal was made public through Trump’s post on Truth Social, where he stated that a new agreement had been reached with von der Leyen. Later, while speaking with reporters in Morristown, New Jersey, the president confirmed the updated timeline, stating, “July 9 would be the day,” before noting that both sides would “rapidly get together to see if we could work something out.”
US Pressures EU for Trade Concessions
The United States has been urging the European Union to reduce tariffs on American-made goods. According to the Financial Times, Washington is demanding more favorable trade terms. In response, the EU is preparing a retaliatory tariff package worth an estimated $108 billion, which it is ready to deploy should negotiations fail. EU leaders, however, have maintained a calm tone in their public messaging, emphasizing the need for constructive dialogue.
Escalation Targets Apple and the Broader EU
Late last week, Trump intensified his trade rhetoric by targeting both the EU and U.S. tech giant Apple. In a pair of posts on Truth Social, he threatened to impose a 25% tariff on iPhones not manufactured in the U.S. This announcement triggered a drop in Apple’s stock price and contributed to a broader market decline on Friday.
Uncertainty Over Tariff Authority
There is ongoing legal ambiguity regarding whether the president can unilaterally impose tariffs on individual companies. Nonetheless, Trump hinted that other smartphone manufacturers—such as South Korea’s Samsung—might also face similar tariffs by the end of June. These threats have raised concerns among economists and business leaders about the predictability of U.S. trade policy under the current administration.
Clashes with Major US Corporations
In recent days, Trump has also lashed out at major American retailers like Walmart and Amazon. These companies have raised alarms over the inflationary impact of tariffs, which are increasingly being passed on to consumers. Trump’s public rebukes reflect a broader tension between the administration and the corporate sector, particularly as inflation and supply chain disruptions remain pressing economic issues.
Treasury Reassures Markets with Trade Deal Pledge
In an effort to calm jittery markets, Treasury Secretary Scott Bessent stated on Friday that the U.S. government plans to unveil “several” significant trade agreements in the coming weeks. While few details were disclosed, the announcement aims to reassure investors and trading partners alike that the administration remains committed to expanding global trade ties despite rising tensions with Europe.
July 9 Becomes a Critical Deadline
While the decision to postpone tariffs may offer temporary relief, the new July 9 deadline is shaping up to be a decisive moment in U.S.-EU trade relations. Observers warn that failure to reach a compromise could result in a renewed escalation of retaliatory tariffs, potentially impacting billions in transatlantic commerce.
As businesses, investors, and policymakers await further developments, the weeks ahead will be crucial in determining whether this pause leads to progress—or marks a prelude to deeper economic conflict.
