President Trump postpones his threatened 50% tariff on EU imports after a “very nice” call with European Commission President Ursula von der Leyen, signaling a new phase in America’s trade strategy.
At a Glance
- Trump extends the deadline for EU tariff negotiations from June 1 to July 9, 2025
- The President initially announced a 20% tariff on most EU goods, later reducing it to 10% to allow for negotiations
- A constructive phone call with EU Commission chief led to the deadline extension
- The U.S. faced a $236 billion trade deficit with the EU last year
- Both sides express readiness for “swift and decisive” trade talks
Trump Shifts from Threats to Diplomacy
President Donald Trump has pivoted from his tough stance on European Union tariffs, extending the deadline for a potential 50% tariff increase from June 1 to July 9. The decision came following what Trump described as a “very nice” phone conversation with European Commission President Ursula von der Leyen.
This marks a significant shift in the administration’s approach to addressing the substantial trade imbalance with the European bloc, which saw the U.S. import $600 billion in EU goods last year while exporting only $370 billion. The extension provides additional time for both sides to negotiate terms that could potentially resolve longstanding trade disputes.
Trump confirmed the extension on his Truth Social platform, stating, “I agreed to the extension — July 9, 2025 — It was my privilege to do so.” The move represents a tactical adjustment rather than an abandonment of his America First trade policy.
Trump has consistently argued that tariffs will boost American manufacturing and protect jobs, though critics note they may increase consumer costs. The current strategy appears aimed at using the threat of severe tariffs to bring trading partners to the negotiating table with more favorable terms for American businesses.
2025, day 144
Good morning from Asia.
President Trump threatened 50% tariffs on the EU starting 1 June —which they will of course retaliate to— stating “I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50%.” The economic impact of that action would be enormous;… pic.twitter.com/r2k9y3vFyX
— Michael Every (@TheMichaelEvery) May 24, 2025
EU Ready for Serious Negotiations
The European response to Trump’s extension has been positive, with von der Leyen expressing readiness to advance talks. “The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9,” von der Leyen stated following the call with President Trump.
The EU has paused its own retaliatory tariffs on U.S. goods as a gesture of good faith, though they continue consulting on additional measures should talks break down. EU trade chief Maros Sefcovic has emphasized the bloc’s commitment to a fair deal based on mutual respect in trade relations. Key European powers France and Germany have advocated strongly for a diplomatic solution, recognizing the potential economic harm that could result from an escalating tariff war between the two major economic powers.
Addressing Trade Imbalances
The core issues driving Trump’s tariff strategy remain unchanged despite the deadline extension. America’s $236 billion trade deficit with the European Union represents a major concern for the administration, which views non-monetary trade barriers as particularly problematic. Specific sectors under discussion include the automobile industry and agricultural goods, with the U.S. maintaining a 25% tariff on EU steel and aluminum imports. These targeted measures highlight Trump’s continued focus on sectors where he believes American workers face unfair competition.
“Good call with @POTUS. The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”, said Von der Leyen.
Despite criticism from some economic analysts, Trump’s approach appears to be achieving its initial goal of bringing trading partners to the negotiating table with serious proposals. The progression from a threatened 20% tariff to 10%, followed by warnings of an increase to 50%, and now a negotiation extension suggests a calculated strategy rather than impulsive policy-making. Industry observers note cautious optimism that substantive agreements might be reached before the new July deadline, potentially avoiding economic disruption while addressing legitimate American trade concerns.
