President Trump agreed to increase the deadline for the steep 50% tariffs he threatened to impose on the European Union starting subsequent week after a “very good discuss” with the top of the Brussels-based bloc.
Trump introduced on Sunday evening that he was pushing again the June 1 deadline to July 9 after a telephone name with the president of the EU, Ursula von der Leyen.
“I acquired a name as we speak from Ursula von der Leyen, President of the European Fee, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Commerce and the European Union,” the president wrote on Reality Social. “I agreed to the extension — July 9, 2025 — It was my privilege to take action. The Fee President mentioned that talks will start quickly. Thanks on your consideration to this matter!”
Trump was responding to a message that von der Leyen despatched just some hours earlier than.
“Good name with @POTUS. The EU and US share the world’s most consequential and shut relationship. Europe is able to advance talks swiftly and decisively,” she wrote on X. “To succeed in an excellent deal, we would wish the time till July 9.”
Trump’s 50% responsibility risk introduced on Friday shocked inventory costs and despatched them tumbling forward of the Memorial Day weekend.
The commander in chief agreed to delay the tariffs after his dialog with von der Leyen and advised White Home reporters Sunday that they might get collectively to barter the commerce deal “quickly.”
“She requested for an extension from the June 1 date and he or she mentioned she desires to get right down to critical negotiations. And we had a really good discuss and I agreed,” the president mentioned, noting that July 9 was the brand new deadline. “That was the date she requested and I agreed to do this. And she or he mentioned we are going to quickly get collectively to see if we may work one thing out.”
Trump, 78, granted the EU the extension after a supply on Friday mentioned the president was critical about taking part in “hardball” with the financial entity.
“You possibly can both play ball with POTUS or he’s going to play ball with you,” the supply advised The Publish, later including the technique was “also referred to as ‘FAFO’ [f—k around and find out].”
The president’s transfer had fast market penalties, sparking a 256-point loss for the Dow Jones Industrial Common, noticed the Nasdaq fall 188 factors and the S&P 500 lose 39 factors.
“I’d hope that this may mild a fireplace underneath the EU,” Treasury Scott Bessent mentioned of Trump’s warning Friday. “A number of the suggestions that I’ve been getting is that the underlying international locations don’t even know what the EU is negotiating on their behalf.”
The EU is made up of 27 nations, and it has an enormous vary of merchandise that it exports to the US – all the pieces from prescribed drugs, equipment, automobiles and electrical gear to agricultural merchandise like wine, cheese, olive oil and vegetables and fruit.
On April 2 – which Trump dubbed “Liberation Day” – he introduced his tariff regime. Every week later, he imposed a 90-day pause on his tariffs, leaving the door open for international locations to barter a brand new take care of the US one-on-one, whereas retaining a ten% price on all international locations besides China.
Thus far, Trump has negotiated a take care of the UK and hashed out a preliminary settlement with China. Negotiations are ongoing.
Trump mentioned final week that if a rustic wished to strike a deal, it wanted to behave quick as a result of the clock was working out. He reminded the world that his administration might be enacting a brand new spherical of tariff charges quickly.
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