President Donald Trump has decided to delay his planned 50% tariffs on European imports until July 9, following a phone call with European Commission President Ursula von der Leyen. Initially, Trump intended to implement the steep tariffs on June 1, but he changed course after speaking with the EU’s executive leader.
“We had a very nice call and I agreed to move it,” Trump told reporters on Sunday at Morristown Airport, New Jersey, before departing for Washington.
Von der Leyen later confirmed the conversation through social media, stating that the European Union remains committed to resuming trade negotiations “swiftly and decisively.” However, she emphasized that reaching a comprehensive agreement would require time, aligning with the new July 9 deadline. Notably, this revised timeline corresponds with the expiration of Trump’s original 90-day delay on the proposed trade tariffs.
Tariff Tensions Emerge Amid Confusion Over U.S. Demands
Europe had already been operating under a 20% tariff on goods sold to the United States, as introduced by the Trump administration in April. That rate had been temporarily reduced to 10% until July 9. Nevertheless, Trump reignited tensions on Friday, expressing frustration with what he saw as slow progress in the negotiations. He accused European officials of stalling discussions and unfairly targeting U.S. companies with lawsuits and regulatory measures.
European leaders, in response, have attempted to clarify Washington’s expectations. While they have proposed mutual tariff reductions on a wide range of goods, Trump remains focused on what he describes as “non-tax barriers” to trade—such as regulatory restrictions and localized business rules that he claims put American companies at a disadvantage.
Markets React as Washington Sends Mixed Trade Signals
Following Trump’s announcement to hold off on the severe tariffs, financial markets in Asia posted gains, suggesting investors welcomed the brief reprieve. Meanwhile, the U.S. dollar, which had hit its lowest value since December 2023 on Friday, fluctuated as markets assessed the long-term implications of Trump’s trade posture.
Deputy Treasury Secretary Michael Faulkender, speaking on Fox News’ Sunday Morning Futures, explained the complexity of the situation. He said the U.S. must navigate “a simultaneous challenge” by negotiating tariffs with the EU as a bloc while also addressing non-tariff barriers on a country-by-country basis. Faulkender labeled it a “negotiation problem” that hampers swift resolution.
EU Revives Talks With Comprehensive Trade Offer
Last week, the European Union sent a new trade proposal to Washington in an effort to restart stalled discussions. According to sources familiar with the talks, EU Trade Commissioner Maros Sefcovic spoke by phone on Friday with U.S. trade representative Jamieson Greer. The updated proposal addresses both tariff and non-tariff issues, while also outlining strategies for joint investments, economic resilience, strategic purchasing, and enhanced cooperation on global challenges.
Officials familiar with the proposal, who requested anonymity because the terms remain confidential, described the offer as Europe’s most comprehensive attempt to reset the transatlantic economic dialogue under the current U.S. administration.
Economic Costs Loom if 50% Tariffs Are Imposed
Should Trump ultimately enforce the 50% import tax, the consequences would be substantial. The tariffs would impact $321 billion worth of annual trade between the U.S. and the European Union. Economists warn that this move could shrink U.S. economic output by approximately 0.6% and raise consumer prices by more than 0.3%.
Trump has defended his tariff strategy as a way to pressure companies to shift manufacturing back to the United States. On the same day he threatened European tariffs, he also floated the idea of imposing 25% duties on mobile phones produced overseas by major firms such as Apple and Samsung.
Trump Clarifies Vision for U.S. Manufacturing
Despite his aggressive rhetoric, Trump clarified on Sunday that he does not seek to revive every form of manufacturing. He echoed recent comments by Treasury Secretary Scott Bessent, who suggested that the U.S. does not need to bring back labor-intensive sectors like clothing production.
“We’re not looking to make sneakers and T-shirts,” Trump said. “We want to make military equipment.” He stressed his intention to focus on high-value industries such as semiconductors, computer hardware, and artificial intelligence. “We want to build the big things,” he added, reinforcing his preference for advanced manufacturing over traditional industrial sectors.
Looking Ahead: Uncertainty Persists Despite Temporary Reprieve
Although the postponement of Trump’s 50% tariffs has provided short-term relief for European exporters, uncertainty still looms over the future of U.S.–EU trade relations. With only weeks remaining before the July 9 deadline, both sides must make rapid progress to avoid a damaging escalation.
For now, the ball is back in the court of diplomats and trade officials. Whether this delay leads to meaningful compromise or simply postpones an inevitable clash remains to be seen. One thing is clear: President Trump has not abandoned his hardline trade strategy—he has only extended the clock.
