U.S. President Donald Trump has postponed a planned 50% tariff on European Union imports from June 1 to July 9. The announcement followed a phone call between Trump and European Commission President Ursula von der Leyen, who expressed the EU’s readiness to advance talks and stressed the importance of their close trade relationship.
Trump previously threatened to impose tariffs last Friday due to frustration over what he described as stalled trade negotiations with the EU. The announcement had rattled global financial markets, with European shares and the euro dipping before rebounding on Monday after the tariff delay was announced.
Despite this extension, analysts caution that uncertainty and volatility remain high. The EU’s capacity to impose retaliatory measures, particularly targeting U.S. pharmaceuticals and services, remains an important leverage point. However, the 27-member bloc has so far preferred a de-escalation approach to preserve economic stability.
