Trump Delays EU Tariff Hike to July 2025 After Talks with Von Der Leyen Ease Trade Tensions
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Trump Delays EU Tariff Hike to July 2025 After Talks with Von Der Leyen Ease Trade Tensions
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The European Union currently faces a 10% tariff rate similar to other countries, but this is scheduled to increase to 20% in early July if no agreement is reached within the original timeframe set by Trump. The President announced the extension on his Truth Social platform, stating it was his "privilege" to grant more time for negotiations.
Von der Leyen characterized their conversation as "good" and expressed optimism about advancing discussions to meet the new deadline. She emphasized that "Europe is ready to advance talks swiftly and decisively" and noted that the EU and US "share the world's most consequential and close trade relationship."
This development follows Trump's May 25th threat to impose the 50% tariff, complaining that the 27-member bloc had been "very difficult to deal with" on trade and that negotiations were "going nowhere." That announcement, along with threatened tariffs on Apple products, sent stock markets tumbling.
The EU has recently adopted a firmer stance regarding negotiations with the American administration. Brussels had anticipated discussing the latest EU offers during a scheduled call last week and expected updates on potential high-level meetings in early June in Paris.
In related news, Trump recently secured what the White House called "a historic trade win" with China on May 12. Under that agreement, both the US and China agreed to lower tariffs by 115% while maintaining an additional 10% tariff, with implementation by May 14, 2025.
These tariff negotiations follow Trump's April 2nd declaration of a national emergency related to trade practices, when he imposed a universal 10% tariff on all countries using his authority under the International Emergency Economic Powers Act.
For European businesses and consumers, the extended deadline provides a brief reprieve, but uncertainty continues to loom over transatlantic trade relations as negotiations enter this critical phase.
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