President Donald Trump took to Reality Social on Sunday night to announce that he has granted the European Union (E.U.) a deadline extension on his risk to implement a 50% tariff beginning on June 1. Trump revealed that progress had been made after he acquired a name from Ursula von der Leyen, the president of the European Fee, the E.U.’s govt arm.
“I acquired a name immediately from Ursula von der Leyen, president of the European Fee, requesting an extension on the June 1st deadline on the 50% Tariff with respect to commerce and the European Union. I agreed to the extension—July 9, 2025,” Trump mentioned. “It was my privilege to take action. The Fee president mentioned that talks will start quickly.”
Echoing Trump’s sentiment, von der Leyen mentioned that the pair had shared a “good name.” In an replace on X, she mentioned: “The E.U. and U.S. share the world’s most consequential and shut commerce relationship. Europe is able to advance talks swiftly and decisively.”
The E.U. is certainly one of Washington’s prime business companions, and is the most important buying and selling bloc on the planet.
In a pointy escalation of commerce negotiations with the E.U., Trump introduced on Friday that he was “recommending a straight 50% tariff on the European Union, beginning on June 1, 2025.”
“The European Union, which was shaped for the first function of profiting from america on TRADE, has been very troublesome to take care of,” Trump claimed. “Their highly effective commerce limitations, VAT taxes, ridiculous company penalties, non-monetary commerce limitations, financial manipulations, unfair and unjustified lawsuits in opposition to People corporations, and extra, have led to a commerce deficit with the U.S. of greater than $250,000,000 a yr, a quantity which is completely unacceptable. Our discussions with them are going nowhere!”
As he has mentioned elsewhere, Trump went on so as to add: “There is no such thing as a tariff if the product is constructed or manufactured in america.”
Later within the Oval Workplace, Trump defended his announcement, complaining concerning the E.U.’s enterprise dealings and citing the U.S. items commerce deficit with the E.U., which was $235.6 billion in 2024, in line with U.S. Commerce Division knowledge.
“I’m not in search of a deal,” Trump instructed reporters. “We’ve set the deal—it’s at 50%.”
U.S. Treasury Secretary Scott Bessent mentioned on Fox Information that he hoped Trump’s tariff risk “would gentle a hearth beneath the E.U.” and pace up negotiations, which he maintains have been shifting at a slower tempo in comparison with others.
And it appears to have executed simply that.
Trump’s preliminary April 2 “Liberation Day” tariffs included a blanket 10% tariff on nations doing enterprise with the U.S., plus extra “reciprocal” tariffs for some. The E.U. was hit with a 20% reciprocal tariff.
In response, von der Leyen issued a powerful assertion on the time, calling the transfer “a blow to the world financial system,” and vowing that the E.U. would difficulty countermeasures.
“We’re on this collectively. If you happen to tackle certainly one of us, you tackle all of us. Europe stands collectively for our companies, for our employees and for all Europeans,” she mentioned, earlier than highlighting her eagerness to maneuver from “confrontation to negotiation.”
The E.U. voted to retaliate on a few of Trump’s tariffs, however such discussions have been halted when Trump introduced a 90-day pause on most “reciprocal” fees. The 90-day pause, set to run out on July 9, supplied the E.U. a reprieve, however Trump’s risk to implement a 50% tariff beginning June 1 spiked tensions as soon as extra and the markets responded negatively. Whereas the risk reignited fears of a U.S.-E.U. commerce warfare, Trump agreeing to stay to the unique July 9 deadline will seemingly ease considerations.
Some hours after Trump’s preliminary announcement on Friday, Maroš Šefčovič, Commissioner for Commerce and Financial Safety on the European Fee, posted on X that he had engaged in discussions with Trump’s Secretary of Commerce, Howard Lutnick, and the U.S. Commerce Consultant Jamieson Greer.
“The E.U.’s absolutely engaged, dedicated to securing a deal that works for each. E.U. stays able to work in good religion,” Šefčovič mentioned, earlier than reiterating the E.U.’s stance that negotiation is most popular over confrontation. “E.U.-U.S. commerce is unmatched and have to be guided by mutual respect, not threats.” Šefčovič concluded on a defiant word: “We stand able to defend our pursuits.”
How Europe reacted to the prospect of a 50% tariff
Europe’s political and enterprise leaders alike reacted to Trump’s announcement on Friday, with many expressing concern and disappointment.
Hakan Samuelsson, the CEO of Volvo Automobiles, which is predicated in Sweden, instructed Reuters that the 50% tariff would restrict the corporate’s potential to promote a few of its autos within the U.S.—resembling those made in Belgium—and mentioned that its prospects must pay a big a part of the price will increase. “I imagine there shall be a deal quickly. It couldn’t be within the curiosity of Europe or the U.S. to close down commerce between them,” he mentioned, expressing hope that negotiations will transfer ahead in a optimistic manner, regardless of the tariff risk.
Micheál Martin, the Irish Taoiseach (Prime Minister), wrote on X that he discovered Trump’s announcement “enormously disappointing” and emphasised that he believes “tariffs are damaging to all sides.”
“A negotiated consequence is the very best consequence for either side, in addition to for international commerce,” Martin mentioned. “The E.U. has been participating in good religion in that course of.”
German International Minister Johann Wadephul instructed reporters that Germany would again the E.U. in “defending Europe” by way of negotiations that enable Europe entry to the U.S. market. “I feel such tariffs assist nobody, however would result in financial growth in each markets struggling,” Wadephul mentioned.
France’s Minister Delegate for International Commerce Laurent Saint-Martin emphasised in a televised interview that the commerce warfare wants “de-escalation,” echoing sentiments he had beforehand expressed through social media.
“Trump’s new threats of tariff will increase are usually not serving to in the course of the negotiation interval between the European Union and america,” Saint-Martin wrote on X. “We keep the identical line: de-escalation however are prepared to reply.”
A tense historical past between Trump and the E.U.
Trump’s tariff risk got here after years of him highlighting dissatisfaction with commerce between the U.S. and the E.U.
Throughout his first time period, Trump imposed tariffs on metal and aluminium imports from the E.U., Canada, and Mexico, which on the time introduced the U.S. to the brink of a commerce warfare. In 2018, when requested concerning the tariffs, Trump mentioned that “no person treats us a lot worse than the European Union” and argued the bloc was “shaped” to “reap the benefits of” the U.S.
In the course of the first few months of Trump’s second time period within the White Home, tensions have grown, each on account of his tumultuous commerce insurance policies and his geopolitical strikes regarding the Russia-Ukraine warfare.
In the meantime, exterior of the E.U., Trump has had some success along with his commerce offers. Trump mentioned on Reality Social on Friday that the U.S. dealings with the UK are “understanding effectively for all.” This got here after the U.S. and the U.Ok. introduced a commerce settlement on Could 8, one which Trump hailed for its “reciprocity and equity.”
Progress was made between the U.S. and China earlier this month when each nations agreed to drastically scale back tariffs on one another for an preliminary 90-day interval, which got here into impact on Could 14.
