#TrumpTariffs | EU Tariff Threat Delayed, Markets React**
President Donald Trump has postponed the implementation of a proposed **50% tariff on European Union imports**, extending the deadline from June 1 to **July 9, 2025**. This decision follows a constructive phone call with European Commission President Ursula von der Leyen, who emphasized the importance of the EU-U.S. trade relationship and expressed readiness to engage in swift negotiations.
**Key Highlights:**
* **Market Impact:** The initial tariff announcement led to significant market volatility, with major indices experiencing notable declines.
* **Economic Projections:** Analyses suggest that the proposed tariffs could reduce long-run U.S. GDP by approximately 6% and decrease wages by 5%, potentially resulting in a \$22,000 lifetime loss for a middle-income household.
* **Revenue Implications:** Despite potential economic drawbacks, the tariffs are projected to increase federal tax revenues by \$152.7 billion in 2025, marking the largest tax hike since 1993.
**Investor Takeaway:**
The extension provides a window for negotiations, but the looming threat of substantial tariffs continues to cast uncertainty over global markets. Investors should remain vigilant, monitoring developments closely and considering the potential implications for international trade and economic stability.
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