President Donald Trump has agreed to extend trade talks with the European Union after threatening to impose a 50% tariff on EU goods. The new deadline for negotiations is July 9, following a call between Trump and European Commission chief Ursula von der Leyen. Trump expressed frustration with the pace of talks and had previously announced a 20% tariff on most EU goods, which he later reduced to 10% to allow time for negotiations.
However, on Friday, he threatened to raise the tariff rate to 50% as soon as June 1. Von der Leyen echoed Trump’s assessment of the call, stating that the bloc was “ready to advance talks swiftly and decisively.” She also emphasized the need for sufficient time to reach a good deal, suggesting July 9 as the deadline. The EU is one of Washington’s largest trading partners, with the bloc exporting more than $600 billion in goods to the US while importing $370 billion worth last year, according to US government data.
Trump has defended his tariff program, arguing that it will boost American manufacturing and protect jobs.
Extending US-EU trade negotiations
However, many economists say these tariffs will make products more expensive for US consumers and have thrown the world economy into chaos.
The president has raised concerns over trade in cars and agricultural goods with the EU. Although some tariffs were paused earlier this year to allow for negotiations, a 25% levy on EU steel and aluminum remains in place. The EU has threatened its own measures against the US, including a 25% tariff on €18 billion worth of US goods coming into Europe, which was put on hold.
The bloc is also consulting on additional measures against US imports valued at €95 billion. European leaders continue to warn against escalation, with France and Germany calling for a diplomatic solution and stressing that tariffs would harm both economies. The EU’s trade chief, Maros Sefcovic, reaffirmed the bloc’s commitment to securing a fair deal, stating that “EU-US trade is unmatched and must be guided by mutual respect, not threats.”
