Donald Trump has announced that he will suspend 50% tariffs in the European Union until July 9th after a “very great call” with EU chief Ursula von der Reyen.
The European Commission president announced in a social media post that she had spoken with Trump, securing the delay to give both sides time to negotiate.
“Europe is ready to move forward with consultations quickly and decisively,” writes von der Reyen. “It will take time until July 9th to reach a significant deal.”
Brussels and Washington were locked in negotiations to avoid an all-out transatlantic trade war after Trump’s tariff threat dramatically raised interests on Friday.
Trump warned that he would impose a 50% tariff on all imports of the bloc into the US, saying “we won’t go anywhere,” adding that the tariffs will apply from June 1st. Trump reiterated his long-standing view that European states “have united to take advantage of us” claiming he was “not looking for a deal.”
German finance minister Lars Klingbale said on Sunday that he spoke to US counterpart Scott Bescent about the issue.
“No further provocation is needed, but no serious negotiations are required,” he told the Bild newspaper, adding that “US tariffs put the US economy as risky as Germany and Europe’s economies.”
If imposed, this increase dramatically raises Washington’s current tariff baseline collection from 10% to 50%, boiling down fuel between the two economic heavyweights around the world. Trump previously threatened a tariff hike that was threatened for three months to allow negotiation time, so he has made his trading partners agree to the new terms until July.
The latest threat from the June hike sent the stock market to Tailspin on Friday. This also led to a decline in the value of the US dollar, fearing it would renew global economic turmoil.
The EU is one of Washington’s largest trading partners, sending over $600 million (£444 billion) of goods last year, and purchasing $370 billion worth of US government figures.
Klingvale reiterated Germany’s support for the EU in handling consultations with the US. “As Europeans, we are determined to unite and represent our interests,” he said.
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EU trade chief Malossyvchovichchu on Friday said the bloc is “committed to securing transactions working for both,” saying trade relations “must be guided by mutual respect, not by threats.”
Ireland’s Prime Minister Missal Martin warned of the consequences if such levels of tariffs were imposed. “This is a surprise, because there was a pause until early July,” he told RTé.
“Everyone in the European Union is acting in good faith and wants a negotiated settlement with the United States.
“Because the European Union and the US trade relationship are the most dynamic and largest in the world, tariffs of that height or scale will be very destructive and will cause even wider disruptions across the global economy.”