Michelle ThompsonUS President Donald Trump has agreed to extend the deadline for tariff negotiations with the European Union until July 9.
This decision followed a “good call” on Sunday between Trump and European Commission President Ursula von der Leyen.
Last month, Trump announced a 20% tariff on most EU imports but later reduced it to 10% to allow time for talks. On Friday, frustrated by the slow progress, Trump threatened to increase tariffs to 50% as early as June 1. His previous deadline for negotiations was July 8.
Speaking to reporters on Sunday, Trump said von der Leyen assured him they would quickly work together to find a solution. He also posted on his Truth Social platform that he was “privileged to extend the deadline.”
Von der Leyen said earlier that the EU is prepared to move swiftly to finalize a trade agreement but needs until July 9 to secure a “good deal.”
Trump has frequently criticized what he sees as an unfair trade relationship between the US and the EU, despite the EU being one of America’s largest trading partners. Last year, the EU exported over $600 billion in goods to the US while importing $370 billion, according to US government data.
More broadly, Trump defends his broad tariff strategy as a way to strengthen American manufacturing and protect jobs. However, his proposed import taxes have unsettled the global economy, and many economists warn they will raise prices for US consumers.
Tariffs are taxes on imported goods, paid by companies bringing foreign products into the US.
Regarding the EU, Trump has focused on concerns around cars and agricultural products. While some tariffs were temporarily paused to allow negotiations, a 25% tariff on EU steel and aluminum remains.
On Friday, before talks with the EU, Trump told reporters he planned to raise tariffs on all EU imports to 50% by June 1, expressing frustration with the negotiations’ pace.
Later that day, the EU’s trade chief, Maros Sefcovic, reaffirmed the bloc’s commitment to achieving a fair deal.
After discussions with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Sefcovic said the EU is “fully engaged” and committed to a mutually beneficial agreement.
He emphasized that EU-US trade is significant and must be based on respect, not threats, and that the EU is prepared to defend its interests.
The EU has also threatened, and paused, retaliatory measures against the US.
It had planned a 25% tariff on €18 billion of US goods entering Europe but suspended it.
The EU is currently considering further measures targeting US imports valued at €95 billion.
Meanwhile, European leaders continue to caution against escalating tensions. France and Germany have urged for diplomatic solutions, highlighting that tariffs would damage both economies.
