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In a recent development, President Trump has agreed to delay his threat of imposing 50 percent tariffs on the European Union (EU) to extend trade negotiations until July 9. This decision came after a conversation on Sunday with European Commission president Ursula von der Leyen.
During the call, Trump expressed his willingness to engage in serious negotiations, stating, “She said she wants to get down to serious negotiation. We had a very nice call.” Von der Leyen reciprocated this sentiment, mentioning that the EU is prepared to advance trade talks with the US swiftly and decisively, but requested Trump to return to the original 90-day negotiation period.
This discussion marked the first publicly disclosed call between the two leaders since Trump’s inauguration. It came just two days after Trump announced his intention to impose 50 percent tariffs on EU imports starting from June 1, citing unsatisfactory negotiations with Brussels.
The EU was taken aback by this escalation in the transatlantic trade war, as Trump had initially paused his plan to impose 20 percent tariffs on the EU in April to initiate a 90-day negotiation period. Von der Leyen’s statement on social media indicated a possible shift in the commission’s stance towards finding a compromise with the US.
Following Trump’s tariff threats, Treasury Secretary Scott Bessent expressed hope that this would prompt the EU to take negotiations more seriously. A White House official mentioned their frustration with the lack of substantial engagement from the EU, stating, “We just haven’t seen anything material come out of the EU.”
Stephen Moore, an economic adviser to Trump, viewed von der Leyen’s statement as a positive sign that the EU is willing to negotiate. He remarked, “It may not be as rapidly as Trump would like to see, but I think this is a peace offering.”
Both sides have acknowledged the challenges in the EU-US trade talks, with Trump criticizing the EU for unfair trade practices and EU officials highlighting the US’s disregard for the bloc’s services surplus. If Trump proceeds with the 50 percent tariffs, the EU has prepared a package of tariffs totaling €21 billion on US products, with discussions ongoing for an additional €95 billion worth of tariffs on items like aircraft, cars, and whiskey.
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