U.S. President Donald Trump has agreed to extend a crucial trade negotiation deadline with the European Union to 9 July, deferring a potential escalation in tariffs that had threatened to reach 50% on EU imports.
The announcement followed a “good call” between Trump and European Commission President Ursula von der Leyen on Sunday, with both leaders expressing a willingness to resolve their trade differences. Trump initially imposed a 20% tariff on most EU goods last month, later reducing it to 10% to allow time for talks. However, on Friday, he voiced frustration with the pace of negotiations and threatened to raise tariffs to 50% starting 1 June.
Trump, posting on his Truth Social platform, said it was his “privilege to extend the deadline,” citing von der Leyen’s commitment to move “swiftly” toward a deal. The EU leader confirmed that the bloc needed until 9 July to finalise a “good deal.”
The U.S. and EU are major trading partners, with the EU exporting over $600 billion in goods to the U.S. last year while importing $370 billion, according to U.S. government data. Trump has frequently criticized this trade imbalance, targeting sectors such as automotive and agriculture.
While some tariffs have been paused during the negotiation window, a 25% levy on EU steel and aluminium remains in place. Trump continues to justify his broader tariff strategy as a means of protecting American jobs and manufacturing, despite widespread concern among economists that such measures raise consumer prices and strain global markets.
The EU has warned of retaliation but has so far held back. A proposed 25% tariff on €18 billion worth of U.S. goods was paused, though consultations continue on potential additional measures targeting up to €95 billion in imports.
European leaders, including France and Germany, have urged diplomatic solutions to prevent mutual economic harm. EU trade chief Maros Sefcovic emphasized the bloc’s commitment to a fair deal, saying, “EU-US trade is unmatched and must be guided by mutual respect, not threats.”
With the extended deadline now set, all eyes turn to July, when the future of transatlantic trade relations could take a decisive turn.
