US President Donald Trump has postponed the imposition of a 50% tariff on all imports from the EU to July. The measure was initially set to take impact on June 1, with Trump citing frustration over stalled progress in commerce negotiations with the 27-nation bloc.
Nonetheless, Trump stated that it was a “privilege” to grant the extension after a telephone name with European Fee President Ursula von der Leyen over the weekend, in a put up on Reality Social. von der Leyen stated that “Europe is able to advance talks swiftly and decisively,” in an X put up ”To succeed in a very good deal, we would wish the time till July 9,” she wrote.
The specter of expanded tariffs has lit a fireplace below the EU, with negotiations now set to focus solely on crucial sectors to fast-track the method, in line with Bloomberg. Maroš Šefčovič, the European Commissioner for Commerce, will lead precedence talks in semiconductors, cars, prescribed drugs, and aluminium.
Washington and Brussels have been negotiating a commerce deal since early April, when Trump suspended his 20% “reciprocal” tariff on the EU, together with these concentrating on different nations with which the US shares a commerce deficit. The following day, the EU suspended its 25% retaliatory tariffs concentrating on €21 billion value of US items.
Nonetheless, on Could 23, Trump stated that the EU “has been very troublesome to cope with” and that “discussions with them are going nowhere,” earlier than asserting his plans for the 50% tariff. In response to the Monetary Occasions, US negotiators are searching for unilateral tariff reductions on American items getting into the EU market.
Sources informed Bloomberg that the EU wish to strike a mutually helpful cope with the US, however officers are unsure as as to whether Trump shares the identical targets. They’ve additionally been emphasising to their American counterparts that the 2 economies are deeply intertwined, and that reaching a deal must be a shared precedence.
The US-EU commerce battle timeline: How we’ve arrived on the delay
Trump has been threatening the EU with tariffs even earlier than his second inauguration, taking challenge with its commerce surplus in automobiles, agriculture, oil, and fuel, however the battle correctly kicked off in March this 12 months.
- March 12, 2025: The US’s expanded tariffs on metal and aluminium imports took impact, each set at 25%. On the identical day, the EU threatened countermeasures concentrating on alcohol and different industrial and agricultural items from the US.
- March 13, 2025: The US president retaliated by threatening 200% tariffs on EU alcohol in an announcement issued by way of social media.
- March 20, 2025: The EU dropped its alcohol tariffs and postponed the others till mid-April.
- March 27, 2025: The US imposed a 25% tariff on world automobile imports, a transfer that disproportionately affected Germany, the world’s largest automotive exporter.
- April 2, 2025: President Trump introduced sweeping “reciprocal tariffs,” which included a 20% tariff on all imports from the EU.
- April 9, 2025: The EU ready 25% retaliatory tariffs concentrating on €21 billion value of US items, set to take impact on April 15. President Trump introduced a 90-day suspension of the reciprocal tariffs, briefly halving the 20% tariff on EU imports to 10%.
- April 10, 2025: The EU suspends its countermeasure plans for 90 days, with hopes of negotiating a commerce settlement throughout the pause.
- Could 8, 2025: The EU proposes a listing of €95 billion value of US merchandise that might face tariffs if talks fail, together with automobiles, plane, electrical tools, alcohol, fish, and chemical substances.
- Mid-Could 2025: Washington and Brussels each ship and reject one another’s commerce proposals.
- Could 23, 2025: Trump proclaims plans to use 50% tariff on all imports from the EU from June 1.
- Could 25, 2025: Trump extends the date the 50% tariff will take impact to July 9.
Through the ongoing negotiation interval, Trump has confirmed that he’ll reinstate reciprocal tariffs on semiconductors and prescribed drugs, and threatened further tariffs on sectors similar to movie business. A number of EU member states have urged the Fee to retaliate ought to these come to fruition.
Final week, the EU shared a commerce proposal with Washington, suggesting the gradual elimination of tariffs on chosen agricultural and industrial items, together with mutual funding and procurement plans in synthetic intelligence, digital connectivity, and different strategic sectors.
The US has struck offers with each the UK and China this month, suggesting that Trump is open to compromise. Nonetheless, in line with Bloomberg, the EU has no intention of accepting phrases much like these agreed with different nations.