Trump Retracts 50% EU Tariff Threat After Call with von der Leyen
Former President Donald Trump has postponed a dramatic 50% tariff EU goods following a phone call with European Commission President Ursula von der Leyen. Speaking from Morristown Airport on Sunday, Trump said, “We had a very cordial call, and I agreed to delay the decision.”
Brussels Pushes for Accelerated Talks
Von der Leyen confirmed the exchange in a post on X, expressing Europe’s readiness to “accelerate negotiations swiftly and resolutely.” However, she noted that a “comprehensive agreement” would still take time—an acknowledgment that aligns with the new July 9 deadline.
Trade Officials Mobilize on Both Sides
Maros Sefcovic, the EU’s trade commissioner, is set to speak with U.S. Commerce Secretary Howard Lutnick later Monday. The talks come after the EU narrowly avoided a tariff surge earlier this year, when Trump agreed to a temporary reduction from 20% to 10%—a reprieve now at risk.
Tensions Rose After Tariff Threat Escalation
On Friday, Trump threatened to hike tariffs to 50% starting June 1, blaming the EU for dragging its feet and accusing it of unfair regulatory treatment toward U.S. companies. The move rattled officials in Brussels but was walked back after Sunday’s dialogue.
Preliminary Deals with UK and China Spark Hopes, but Trump Rekindles Tariff Fears
Preliminary agreements with the United Kingdom and China sparked enthusiasm on Wall Street and among business leaders, raising hopes that the U.S…
Markets React Positively to Ongoing Dialogue
Global financial markets responded with cautious optimism. Stock-index futures in the U.S. and Europe gained, while Asian equities also climbed. The dollar, however, weakened slightly after reaching its lowest point since December 2023.
Trade Demands Still Unclear Amid Complex Negotiations
While EU officials say they’ve offered to eliminate a range of tariffs, Trump’s focus remains on what he calls “non-tariff trade barriers.” Deputy Treasury Secretary Michael Faulkender highlighted the complexity of negotiating with the EU as a bloc while addressing national-level regulations.
Revised EU Proposal Seeks Broader Accord
To reignite stalled talks, the EU introduced a revised trade proposal last week. Sefcovic met with U.S. Trade Representative Jamieson Greer on Friday, and EU ambassadors are holding an emergency session Monday to review the Commission’s updated framework. The plan reportedly includes eliminating tariff and non-tariff barriers, enhancing investment reciprocity, and strengthening cooperation on strategic procurement and global issues.
Economic Stakes Remain High for Both Sides
If implemented, Trump’s 50% tariffs could affect $321 billion in annual trade and shrink U.S. GDP by 0.6%, according to Bloomberg Economics. Consumer prices could rise by over 0.3%, adding inflationary pressure.
Despite the aggressive rhetoric, Trump reaffirmed on Sunday his strategic focus: “We’re not aiming to produce sneakers and T-shirts. We want to manufacture strategic assets—military equipment, semiconductors, computers, and AI technology.” This came after he also proposed a separate 25% tariff on foreign-made smartphones from companies like Apple and Samsung.
