Trump Delays EU Tariffs Until July 9

• U.S. President Donald Trump backed away from his threat to impose 50% tariffs on imports from the European Union (EU) next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal.
• Trump had said on Friday, May 23, 2025, that he was recommending a 50% tariff effective from June 1, expressing frustration that trade negotiations with the EU were not moving quickly enough. The threat roiled global financial markets and intensified a trade war that has been punctuated by frequent changes in tariff policies toward U.S. trading partners and allies.
• However, the U.S. president's softened stance two days later marked another reprieve in his erratic trade policy, even if the latest whipsawing in decision-making reminded policymakers and investors how quickly circumstances could change.
• In early April, Trump set a 90-day window for trade talks between the EU and the United States, which was to end on July 9. But on Friday, he upended that time frame and said he wasn't interested in a deal at all.
• Talks have been stuck, with Washington demanding unilateral concessions from Brussels to open up to U.S. business while the EU seeks an agreement in which both sides could gain, according to people familiar with the talks.
• The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars and so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that had been due to rise to 20% after Trump's 90-day pause expires in July. The levy could now increase to 50% in a no-deal scenario, which could raise consumer prices on everything from motor vehicles to Italian olive oil and even hurt demand for French luxury handbags.

(Source: Reuters)