The President of the United States, Donald Trump, announced an extension on the imposition of a 50% tariff on products imported from the European Union, initially set to take effect on June 1.
The new deadline will be July 9, 2025, following a phone call with the President of the European Commission, Ursula von der Leyen.
"I received a call from Ursula von der Leyen requesting an extension of the June 1 deadline for the 50% tariffs. I accepted the extension—July 9, 2025. It was a privilege to do so," Trump wrote on his social media.
Von der Leyen also confirmed the contact and expressed her willingness to quickly move forward with the trade negotiations.
Trump's decision comes after weeks of uncertainty and economic and diplomatic tensions, during which the U.S. president insisted that the EU has historically acted to the detriment of the United States in trade matters.
In previous publications, he accused the European bloc of creating "ridiculous" trade barriers, manipulating its currency, and harming American companies.
He even described the creation of the EU as a project to "exploit the United States", and publicly suggested the implementation of a direct tariff of 50% if an agreement was not reached.
Despite the bellicose tone, the reversal is not entirely surprising. He has done so before with countries like Mexico, Canada, and China. On the so-called "Liberation Day," April 2nd, Trump announced reciprocal tariffs on several trading partners, but the negative reaction from the markets—especially the debt market—forced him to suspend their implementation until July.
The announcement of this new postponement triggered immediate relief in the financial markets: the euro reached its highest level against the dollar since April 30, and European stocks rebounded, recovering losses from previous sessions.
However, the difference between negotiation styles is evident. While Washington tends to negotiate with social media messages and public threats, Brussels chooses a technical, legal, and multilateral approach.
The European Commission represents the 27 member states and requires precise mandates, regular reports, and internal consensus for every decision. This pace frustrates Trump's team, which is more inclined towards immediate results and striking gestures.
With the countdown clock ticking down to July 9, the future of the trade agreement between the two powers remains uncertain. However, at least for now, the threat of a tariffs war has been restrained.
Frequently Asked Questions about Trump's Tariffs on the European Union
Why did Trump decide to postpone the imposition of the 50% tariffs on the European Union?
Donald Trump postponed the implementation of a 50% tariff on the European Union until July 9, 2025, following a call with Ursula von der Leyen, President of the European Commission, who requested the extension to seek a negotiated solution. This postponement occurs amid ongoing trade and diplomatic tensions between the U.S. and the EU.
How has the financial market reacted to the announcement of the tariff postponement?
The announcement of the tariff postponement prompted immediate relief in the financial markets. The euro reached its highest level against the dollar since April 30, and European stock markets rebounded, recovering losses from previous sessions. This reaction reflects the positive impact of temporarily avoiding a trade war between the United States and the European Union.
What stance has the European Union taken regarding the tariff threats from Trump?
The European Union has adopted a stance of containment and strategy in response to Trump's tariff threats. Brussels has proposed a "zero-for-zero" tariff agreement for all industrial goods, aiming to avoid a trade war. However, it has also prepared a list of U.S. products that could be taxed if negotiations fail, demonstrating its readiness to implement countermeasures if necessary.
Which economic sectors would be most affected by a trade war between the U.S. and the EU?
In the event of a trade war, the automotive, chemical, pharmaceutical, and machinery sectors would be the most affected. The tariffs proposed by Trump include high duties on automobiles, steel, and aluminum, which would have a significant impact on the European industry. Furthermore, the increase in import costs could affect supply chains, creating a domino effect in various areas of the global economy.
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