Trump Delays EU Tariff Hike Deadline Until July 9th

Key Takeaways

• 50% tariffs delayed: Trump extends deadline following call with EU’s von der Leyen.

• $321B in trade at risk: U.S.-EU tensions threaten billions in goods.

• EU offers revised proposal: Brussels seeks to avoid escalation with fresh trade terms.

• Counter-tariffs ready: EU may hit €100B in U.S. exports if no deal is reached.

EU Urges Diplomacy

The delay followed a direct phone conversation with European Commission President Ursula von der Leyen, who appealed for more time to broker a compromise. Trump said:

“We had a very nice call, and I agreed to move it.”

The extension pushes back the threat of a major U.S.-EU trade escalation that could impact over $321 billion in annual transatlantic commerce.

Donald Trump Referencing His Call With Ursula Von Der Leyen

Source: X (@realDonaldTrump)

More Time Needed

On Sunday, von der Leyen posted on X, reaffirming Europe’s commitment to continued discourse with the United States. She said the European Union is prepared to move “swiftly and decisively” but cautioned that finalizing a meaningful agreement “requires time.”

The new deadline marks the end of a 90-day grace period initially offered by the U.S. in April, temporarily shielding the EU from a 20% tariff hike. That pause was meant to create room for negotiation, but tensions have only grown.

Trump Reaffirms 50% Tariff Threat

Despite the extension, President Trump insisted the tariff proposal remains unchanged. He said:

“We’ve set the deal and it’s at 50%. I’m not looking for a deal.”

Trump accused the EU of dragging its feet in talks and using regulatory frameworks to sideline U.S. companies. The administration believes these tactics unfairly favor European firms, particularly in industries like technology, agriculture, and automotive manufacturing.

Donald Trump Announcing His EU Tariffs

Source: X (@realDonaldTrump)

GDP & Inflation Risk

If the 50% tariffs are enacted, Bloomberg Economics estimates the U.S. GDP could dip by 0.6%, with inflation rising by over 0.3%, putting additional pressure on already strained American consumers.

Brussels Responds With Revised Trade Offer

In a bid to prevent further deterioration, the EU submitted a revised trade package late last week. EU Trade Commissioner Maroš Šefčovič spoke directly with U.S. trade advisor Jamieson Greer, signaling willingness to restart meaningful discussions.

However, Washington has not officially responded. Analysts note the offer may fall short of U.S. expectations unless significant regulatory concessions are included.

White House: EU Still Not Doing Enough

Behind the scenes, U.S. officials are increasingly frustrated. Treasury Secretary Scott Bessent told Fox News:

“I would hope this lights a fire under the EU.”

One senior White House official, speaking anonymously, said:

“We just haven’t seen anything material come out of the EU.”

If Talks Fail: EU Prepares Tariff Retaliation

If no agreement is reached by July 9th, the EU plans to hit back with €21 billion in tariffs on U.S. exports, targeting politically sensitive goods such as:

• Corn and wheat

• Motorcycles

• Textiles and apparel

A second wave, valued at up to €95 billion, would target:

• Boeing aircraft

• Automobiles

• Bourbon whiskey

These countermeasures are designed to pressure Washington by striking key U.S. industries, particularly in swing states ahead of the next election.

Deal Or Trade War?

The next few weeks represent a critical window. The Trump administration is using the tariff threat as leverage for structural reform, while the EU aims to maintain trade stability without appearing weak.

Whether this standoff ends in a breakthrough or breaks into a full-scale trade war remains uncertain.

FAQ

Why did Trump delay the tariffs?

Trump postponed the tariffs after a call with EU Commission President von der Leyen, granting more time for trade talks.

What goods would the 50% tariffs affect?

The tariffs would impact over $321B in U.S.-EU trade, including automotive, tech, and consumer goods.

How will this affect the U.S. economy?

Economists predict a 0.6% GDP dip and over 0.3% inflation increase if the tariffs are enforced.

What is the EU planning in response?

The EU is preparing up to €116B in retaliatory tariffs targeting key U.S. exports like aircraft and bourbon.

Could a trade deal still be reached?

Yes, both sides are negotiating, but deep disagreements remain over regulations and market access.