Trump Eases On Tariff Aggression, Extends Deadline Till July 9 Following Talks With EU President

<p>President Donald Trump said that he would delay the imposition of 50 per cent tariffs on European Union goods, moving the deadline to July 9 after a call with European Commission President Ursula von der Leyen.</p>
<p>Speaking at Morristown Airport in New Jersey on Sunday, Trump told reporters, &ldquo;We had a very nice call and I agreed to move it,&rdquo; as he prepared to return to Washington, reported Bloomberg.</p>
<p>Von der Leyen, in a statement posted earlier the same day on X, confirmed that Europe remains committed to advancing negotiations. However, she cautioned that &ldquo;a good deal&rdquo; would require &ldquo;time until July 9.&rdquo; This marks the end of a 90-day suspension period for Trump&rsquo;s originally proposed reciprocal tariffs.</p>
<h3><strong>Tensions Ease but Trade Disagreements Remain</strong></h3>
<p>The EU was initially set to face a 20 per cent tariff as part of the US&rsquo;s reciprocal trade strategy announced in April. This rate was temporarily reduced to 10 per cent during the pause, which now remains in effect until July 9.</p>
<p>Despite the de-escalation, Trump raised tensions on Friday by threatening to implement 50 per cent tariffs starting June 1, criticising the EU for stalling talks and targeting American firms through legal and regulatory measures.</p>
<p>EU officials have faced uncertainty over the direction of Trump&rsquo;s trade agenda. While the bloc has expressed openness to eliminating tariffs on a wide array of goods, Trump remains focused on what he perceives as unfair non-tariff barriers. Deputy Treasury Secretary Michael Faulkender noted on Fox News that the US is juggling both bloc-wide tariff discussions and individual negotiations over non-tariff concerns, which he described as a &ldquo;negotiation problem.&rdquo;</p>
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<h3><strong>New EU Proposal Seeks Broader Trade Alignment</strong></h3>
<p>In an effort to reinvigorate the stalled negotiations, the EU shared a revised trade proposal with the US last week. The update aims to address both tariff and non-tariff concerns, while also proposing greater collaboration on economic security, joint investments, and global challenges. According to individuals familiar with the plan, who requested anonymity, the new framework remains confidential, the report noted.</p>
<p>Additionally, EU Trade Commissioner Maros Sefcovic and US trade official Jamieson Greer held a phone discussion on Friday to advance the renewed proposal.</p>
<p>According to Bloomberg Economics, a 50 per cent tariff could affect $321 billion in trade between the US and EU, potentially shrinking US GDP by around 0.6 per cent and pushing consumer prices up by more than 0.3 per cent.</p>
<p>Trump has argued that tariffs serve as leverage to encourage domestic production. The same day he floated the EU tariff hike, he also threatened 25 per cent levies on smartphones manufactured abroad by tech giants such as Apple Inc. and Samsung Electronics Co.</p>
<p>Yet, Trump drew a line between strategic and non-strategic industries. &ldquo;We&rsquo;re not looking to make sneakers and T-shirts, and we want to make military equipment,&rdquo; he said on Sunday, aligning his position with Treasury Secretary Scott Bessent&rsquo;s recent comments. He added that he envisions manufacturing of &ldquo;big things&rdquo; like semiconductors, computers, and AI technologies taking place within the US.</p>