President Donald Trump has agreed to extend trade talks with the European Union after threatening a sweeping 50% tariff on EU goods. This move follows rising tensions between Washington and Brussels over what Trump calls an unfair trade relationship.
Initially, Trump proposed a 20% tariff on EU imports. He later reduced the rate to 10% to allow time for negotiations. However, on Friday, he voiced frustration with the pace of discussions and warned that tariffs could rise sharply by 1 June.
Over the weekend, Trump announced a new deadline of 9 July. This came after what he called a “very nice” phone call with European Commission President Ursula von der Leyen. Von der Leyen confirmed the extension and stated the EU was ready to move talks forward “swiftly and decisively.”
This extended deadline mirrors an earlier timeline set before the 50% threat, giving both sides more room to reach a deal. Trump has consistently argued that EU trade policies harm American workers and manufacturers. He also claims that tariffs are essential to rebalance trade and protect US industries.
Last year, EU exports to the US totaled over $600 billion, while US exports to Europe were significantly lower. Trump believes this imbalance justifies import taxes, despite widespread criticism from economists and industry leaders.
The EU remains wary of Trump’s strategy. Although it previously paused retaliatory tariffs, the bloc has warned it may resume action if talks collapse. It had planned a 25% tariff on €18 billion worth of American goods. An additional €95 billion in US products could also face tariffs if no agreement is reached.
EU trade chief Maros Sefcovic reiterated the bloc’s commitment to a fair deal. He stressed that trade should be based on mutual respect, not threats. He also confirmed ongoing talks with US officials to prevent economic escalation.
France and Germany continue to push for diplomacy. Both nations have urged restraint, warning that tariffs will hurt businesses on both sides of the Atlantic.
Trump agrees to extend EU trade talks, but serious gaps remain between the two sides. Global markets are watching closely as the clock ticks toward the July deadline.
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