#TrumpTariffs
12.85
+2.14%
Trump Delays Tariff Hike, Extends EU Trade Negotiations to July
Washington, D.C., May 26 — In a significant turn in transatlantic trade tensions, President Donald Trump announced today that the U.S. will extend its ongoing trade negotiations with the European Union, postponing a planned 50% tariff on EU imports. The new deadline for a potential agreement is set for July 9, providing a brief reprieve for European exporters.
Just days earlier, Trump had blasted the EU’s trade approach as “rigid and unfair,” warning of harsh consequences if talks failed to make headway. The proposed tariff escalation, far exceeding the 20% duties enacted in April, rattled markets and drew strong criticism from European business leaders, particularly in the automotive and heavy machinery sectors.
The shift in stance came after a high-level call from European Commission President Ursula von der Leyen, who urged renewed dialogue and proposed a reset to the original 90-day negotiation period. In response, the White House indicated willingness to “give diplomacy a final chance.”
Trade tensions between Washington and Brussels have been mounting since April’s tariff announcement. Although a temporary truce introduced a 10% baseline tariff and launched initial discussions, progress stalled over differing regulatory priorities. The EU’s latest proposal emphasizes labor protections, environmental commitments, and a gradual easing of tariffs on non-strategic goods.
Whether this diplomatic extension results in a lasting trade accord remains uncertain—but for now, the threat of an imminent tariff shock has been averted.
.
