The US and EU have extended tariff negotiations until July 9.

After a phone call with European Commission President Ursula von der Leyen, U.S. President Donald Trump announced on Sunday, local time, that the 50% punitive tariffs originally scheduled to be imposed on the EU starting June 1 will be postponed to July 9. This decision aims to buy more time for trade negotiations between the U.S. and Europe.

Speaking to the media at Morristown Airport in New Jersey, Trump said, “We had a very pleasant conversation, and I agreed to change the date.” Previously, he had criticized the slow progress of EU negotiations and threatened to implement the high tariffs earlier.

Earlier that day, Von der Leyen stated via social platform X that the EU is "prepared to advance negotiations quickly and decisively," but also emphasized that achieving a quality agreement "takes time." She noted that July 9 marks the end of the 90-day tariff suspension previously agreed upon.

According to the reciprocal tariff plan announced by the U.S. in April, the EU was originally set to be subject to a 20% tariff. However, during negotiations, both sides temporarily applied a baseline rate of 10% until July 9. However, last Friday, Trump suddenly threatened to raise tariffs to 50%, causing market concern. Trump accused the EU of unfairly treating American companies through litigation and regulatory measures, while there has been a lack of substantive progress in trade talks.

The EU has been puzzled by Trump’s trade negotiation strategy. Although EU officials have indicated that most tariffs on goods could be reduced to zero, the Trump administration has remained focused on so-called “non-tariff barriers.”

U.S. Deputy Secretary of the Treasury Michael Faulkner remarked in an earlier media interview that the U.S. is facing the challenge of “two-front negotiations”: it must negotiate tariffs with the entire EU while also addressing non-tariff barriers with certain member countries individually. He described it as a complex "negotiation problem."

In an effort to advance negotiations, the EU submitted a new trade proposal to the U.S. last week. According to informed sources, this framework encompasses tariffs, non-tariff barriers, economic security, mutual investment, strategic procurement cooperation, and mechanisms for addressing global issues. EU Trade Commissioner Maroš Šefčovič communicated with U.S. Trade Representative Greer last Friday.

According to market institution estimates, if Trump imposes a 50% high tariff on the EU, it will impact bilateral trade in goods worth $321 billion, potentially causing U.S. GDP to decline by nearly 0.6%, while prices may rise by about 0.3%.

Trump has consistently advocated for tariffs to encourage manufacturing to return to the U.S. He recently threatened to impose an additional 25% tariff on smartphones produced overseas by companies like Apple and Samsung Electronics. However, on Sunday, he also hinted at some moderation, applauding Treasury Secretary Scott Besant’s view that the U.S. does not need to revive traditional textile manufacturing.

“We’re not going to produce sneakers and T-shirts; we want to manufacture military equipment,” Trump said. He emphasized his desire for the U.S. to produce “bigger items,” such as chips, computers, and core technological products in artificial intelligence, highlighting his tech-focused policy inclination.

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