US President Donald Trump has agreed to extend the deadline to negotiate tariffs with the European Union until July 9. This development follows European Commission President Ursula von der Leyen’s remark that she had a call with the US President yesterday.
Trump had initially announced a 20 per cent tariff on most EU goods but later reduced it to 10 per cent until July 8 to allow time for negotiations. However, on Friday, he expressed dissatisfaction with the slow pace of the talks and threatened to raise tariffs on EU goods to 50 per cent. Ms. von der Leyen had earlier said that she was ready to agree on a trade deal with the US, but that the bloc needed until July 9 to agree on a good deal.
Trump had said on Friday said 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.
The U.S. president’s softened stance two days later marked another temporary reprieve in his erratic trade policy, even if the latest whipsawing in decision making reminded policymakers and investors how quickly circumstances could change.
Trump, who has repeatedly expressed disdain for the EU and its treatment of the United States on trade, relented after European Commission President Ursula von der Leyen told him on Sunday that the EU needed more time to come to an agreement.