Tensions between the United States and the European Union over trade tariffs remain high. However, in a surprising move, President Donald Trump has announced a postponement of the planned 50% tariffs on EU goods until July 9. The delay came after a phone call with European Commission President Ursula von der Leyen, who asked for more time to reach a trade deal.

“We had a very nice call, and I agreed to delay,” Trump told reporters while flying back to Washington.

🔹 Brussels Gets a Breather – But Not for Long

Von der Leyen posted on X that Europe is ready to move swiftly and decisively, but a “good deal” will require more time – specifically until July 9, which marks the end of a 90-day negotiation window. That window had originally shielded the EU from a 20% tariff Trump first announced in April.

Still, Trump made it clear the 50% tariff threat remains on the table. If no progress is made, tariffs will go into effect. As he bluntly put it: “We already have a deal – it’s at 50%.”

🔹 Major Impact on Trade and the U.S. Economy

The proposed tariffs would affect $321 billion worth of trade between the U.S. and the EU. Economists estimate that this move could reduce the U.S. GDP by nearly 0.6% and raise consumer prices by more than 0.3% – a hit both sides would feel.

🔹 EU Signals Willingness to Negotiate

In response to Trump’s tough talk, Brussels submitted a new trade proposal last week. EU Trade Commissioner Maroš Šefčovič spoke by phone with U.S. trade representative Jamieson Greer, aiming to demonstrate the bloc’s willingness to strike a compromise.

Meanwhile, U.S. Treasury Secretary Scott Bessent told Fox News on Friday, “I hope this lights a fire under the EU,” referring to the threat of higher tariffs.

Yet frustration is growing in Washington. An anonymous White House official criticized the EU’s approach, saying the bloc hasn’t shown the same level of engagement as other trading partners. “We just haven’t seen anything meaningful from the EU,” the official noted.

🔹 EU Prepares Its Own Countermeasures

The EU already has a €21 billion retaliation package ready, targeting U.S. corn, wheat, motorcycles, and apparel. Additionally, a second list worth €95 billion is under consideration, focusing on Boeing aircraft, automobiles, and bourbon whiskey.

🧨 Countdown Begins – Will There Be a Deal or a Trade War?

While Trump has granted Europe a few more weeks, the threat of 50% tariffs has not disappeared. If negotiations don’t move fast enough by July, it could trigger one of the biggest trade clashes between the U.S. and the EU in recent history.



#TRUMP , #TradeWars , #TradingCommunity , #Tariffs , #worldnews

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