U.S. President Donald Trump has extended the deadline to impose a proposed 50% tariff on European Union (EU) goods, giving negotiators until July 9 to finalize a trade agreement aimed at resolving long-standing disputes over tariffs and non-tariff barriers.
The decision followed a phone conversation with European Commission President Ursula von der Leyen over the weekend.
“We had a very nice call and I agreed to move it,” Trump told reporters on Sunday at Morristown Airport in New Jersey, confirming the 90-day tariff pause will now remain in effect through early July.
The move temporarily eases pressure on roughly $321 billion in transatlantic goods trade. However, analysts say the extension is unlikely to reduce the underlying tension as Trump reiterated his dissatisfaction with the pace of negotiations and what he described as the EU’s “unfair treatment” of American companies.
Trump had initially proposed a 20% tariff under his so-called “reciprocal trade” framework in April, later increasing the threat to 50% by June 1. That timeline has now shifted following assurances from von der Leyen that Brussels is prepared to engage decisively in the coming weeks.
“Europe is ready to advance talks swiftly and decisively,” the Commission President posted on X, but added that “a good deal” would require additional time.
According to a European Commission spokesperson, EU Trade Commissioner Maros Sefcovic is expected to hold follow-up discussions with U.S. Commerce Secretary Howard Lutnick later Monday.
EU ambassadors are also convening to review the state of negotiations and debrief member states on the latest U.S.-EU engagements.
...ponement comes as the EU prepares to push forward a revised trade proposal addressing both tariff and non-tariff barriers.
The proposed framework includes provisions for joint investment initiatives, economic security measures, and strategic supply chain cooperation, according to sources familiar with the matter.
Deputy U.S. Treasury Secretary Michael Faulkender, speaking on Fox News, noted the complexity of the negotiation structure.
He said the U.S. faces a “simultaneous challenge” in balancing bloc-wide EU negotiations on tariffs with separate talks on regulatory and legal hurdles with individual EU member states.
The extended timeline is viewed as a tactical move by the Trump administration to maintain negotiating leverage while calming financial markets.
U.S. and European equity-index futures posted gains on Monday while the dollar saw mild fluctuations after touching its lowest level since December 2023.
Still, the threat of tariffs continues to weigh on global trade sentiment. Bloomberg Economics estimates that a full 50% tariff on EU goods could reduce U.S. GDP by 0.6% and increase domestic consumer prices by over 0.3%.
Trump has framed the tariff escalation as part of a broader push to onshore critical manufacturing capacity, particularly in semiconductors, artificial intelligence, and military equipment. “We’re not looking to make sneakers and T-shirts,” he said on Sunday. “We want to make big things.”
He also issued fresh warnings to U.S. tech companies outsourcing production, singling out smartphones manufactured abroad by Apple Inc. and Samsung Electronics Co. and suggesting a possible 25% tariff on such products.
Despite the extension, Trump’s rhetoric suggests that the threat of escalation remains firmly on the table. The July 9 deadline now serves as a key marker for both sides to secure concessions or face significant trade disruption
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