President Donald Trump announced on Sunday that he is granting an extension to the European Union for negotiating a trade deal to avoid his proposed 50 percent tariffs. The deadline has been pushed back to July 9.
Trump’s decision to extend the deadline came after a phone call with Ursula von der Leyen, the president of the European Commission.
Extension of Tariffs
The tariffs, which were initially set to be imposed at the beginning of June, will now take effect on July 9, 2025. Trump expressed his willingness to grant the extension, stating, “It was my privilege to do so. The Commission President mentioned that talks will commence promptly,” on Truth Social.
Impending Tariff Rates
Currently, the European Union is facing a 10 percent tariff rate similar to other countries. However, this rate is set to increase to 20 percent in early July if a deal is not reached within Trump’s previous 90-day deadline.
Von der Leyen indicated on Sunday that they had a productive call and that the EU requires until July to finalize a favorable deal with Trump. She expressed optimism in moving negotiations forward to meet the deadline.
Trade Relationship
Highlighting the significance of the trade relationship between the EU and the US, Von der Leyen emphasized the need to swiftly progress talks for a beneficial outcome. She stated, “Europe is prepared to advance negotiations swiftly and decisively,” on X.
The recent discussions surrounding the negotiations with the American president have seen the European Union adopting a more assertive stance.
Continued Negotiations
The European Commission remains committed to engaging in discussions in good faith. Maroš Šefčovič, the EU’s trade chief, affirmed the EU’s readiness to defend its interests and emphasized the importance of mutual respect in trade relations.
Despite expectations to discuss the EU’s recent proposals during a call on Friday, Trump’s latest warning has dampened hopes for a constructive dialogue.
