In a move that temporarily cools rising transatlantic tensions, U.S. President Donald Trump has extended the deadline for trade negotiations with the European Union to 9 July, following a direct phone conversation with European Commission President Ursula von der Leyen.
The decision comes days after Trump warned of a potential 50% tariff on EU imports, voicing frustration over stalled negotiations. Originally, the White House had imposed a 20% tariff on most European goods, later easing it to 10% until 8 July to allow more room for diplomatic dialogue.
Trump Signals Willingness, But Warns of Swift Action
Speaking to reporters at the White House, Trump said that Von der Leyen assured him of prompt cooperation. He later posted on Truth Social, calling it his “privilege to extend the deadline,” indicating that discussions were progressing, albeit slowly.
Earlier in the week, Von der Leyen reaffirmed the EU’s commitment to a swift and balanced agreement, emphasizing the need for until 9 July to finalize terms. “We need time for a good deal, but we’re ready to move fast,” she stated.
EU Pushes Back on Threats, Calls for Fair Terms
The EU’s trade chief, Maroš Šefčovič, reiterated the bloc’s dedication to achieving a fair agreement. After a conversation with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, he stated:
“EU-U.S. trade is one of the strongest in the world, and must be built on respect, not threats. We remain fully engaged in crafting a mutually beneficial agreement.”
Šefčovič’s comments followed Trump’s remarks threatening a blanket 50% tariff on all EU goods by 1 June— a move that risked destabilizing global markets and triggering retaliatory actions.
Europe’s Economic Stakes and U.S. Trade Balance
According to official U.S. data, the EU exported over $600 billion in goods to the United States last year, while American exports to Europe stood at around $370 billion. Trump has long criticized the imbalance, particularly targeting automobile and agricultural sectors.
While some tariffs have been temporarily paused for negotiation purposes, a 25% levy on EU steel and aluminum remains active.
European powers including France and Germany have urged diplomacy over escalation, warning that trade wars would damage both economies. The EU had previously prepared a 25% retaliatory tariff on €18 billion worth of U.S. imports, though this measure remains on hold.
Additionally, the bloc is weighing further tariffs on U.S. goods valued at €95 billion, pending outcomes of ongoing talks.
