Washington:
US President Donald Trump on Sunday backed off his threat to impose 50 per cent tariffs on goods from the European Union, as he agreed to extend his deadline for trade talks until July 9, after a “very nice call” with EU chief Ursula von der Leyen. On Friday, Trump threatened to intensify his trade war and invoke the steep tariffs on the EU as soon as June 1, saying talks with the bloc over his previous levies were “going nowhere.” The threat roiled global markets.
The American President relented after European Commission President Ursula von der Leyen told him during a phone call that the EU needed more time to come to an agreement and asked him to delay the tariffs until July, the deadline he had originally set when he announced new tariffs in April.
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly. Thank you for your attention to this matter,” Trump wrote on his Truth Social platform.
The EU chief had earlier said on X that she held a “good call” with Trump, but that “to reach a good deal, we would need the time until July 9.”
“Europe is ready to advance talks swiftly and decisively,” said the president of the European Commission, which conducts trade policy for the 27-nation bloc.
Trump’s Threat
In early April, Trump had set a 90-day window for trade talks for the EU and the US, which was to end on July 9 as Brussels and Washington negotiated in a bid to avert an all-out transatlantic trade war.
But Trump’s threat on Friday dramatically raised the stakes, after he said he was “not looking for a deal” with the EU, repeating his oft-stated view that the bloc was created to “take advantage” of the United States.
Trump has hit the bloc with three sets of tariffs: 25 per cent on steel and aluminium and on automobiles, followed by a 20 per cent “reciprocal” levy on all imports — which has been suspended pending talks, though a baseline 10 per cent remains in force.
EU’s Plan
The EU’s trade chief, Maros Sefcovic, who held talks with his US counterparts on Friday, responded to Trump’s latest outburst by saying the bloc was “committed to securing a deal” but that trade ties should be based on “mutual respect, not threats”.
Brussels has announced plans to hit US goods worth nearly 100 billion euros ($113 billion) with tariffs if negotiations fail to produce a deal. The US trade deficit in goods with the European Union was $236 billion in 2024. But when taking account of services, where American firms are dominant, the European Commission calculates that the US trade deficit stood at 50 billion euros ($57 billion).
‘Serious Negotiations’
Meanwhile, German Finance Minister Lars Klingbeil separately on Sunday called for “serious negotiations” with Washington, saying he had spoken with his US counterpart Scott Bessent about the matter.
“We don’t need any further provocations, but serious negotiations,” Klingbeil, who is also Germany’s vice chancellor, told Bild newspaper.
“The US tariffs endanger the US economy just as much as the German and European economy,” Klingbeil warned.