Trump takes sudden U-turn, extends 50 per cent EU tariff deadline to July 9

In a dramatic shift just days before a major tariff deadline, US President Donald Trump has agreed to delay his proposed 50 per cent tariff on European Union goods until July 9, offering both sides a final window to negotiate a comprehensive trade deal.

The decision came after a phone conversation between Trump and European Commission President Ursula von der Leyen on Sunday. Trump, who had earlier accused the EU of stalling negotiations, said the bloc is now ready to “get down to serious negotiations.”

“I agreed to the extension — July 9, 2025 — It was my privilege to do so,” Trump announced on Truth Social, shortly after the call.

EU-US tariff tension

The extension aligns with the end of a 90-day pause Trump had announced in April to allow room for negotiations. The EU had initially faced a 20 per cent tariff under Trump’s reciprocal trade framework, which had been temporarily reduced to 10 per cent until July 9. However, rising frustration prompted Trump to threaten an escalation to 50 per cent, set to kick in on June 1.

Trump accused the EU of unfairly targeting American companies with lawsuits and regulations, and claimed the bloc was “slow-walking” negotiations. But following assurances from von der Leyen, he said it was his “privilege” to agree to an extension.

Behind the scenes, Brussels has reportedly shared a new trade framework with Washington, covering both tariff and non-tariff barriers, and focusing on strategic sectors like mutual investments, supply chain security, and economic cooperation. Talks between EU Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer were also held last week to accelerate progress.

The stakes are high. A 50 per cent tariff could hit $321 billion worth of goods, potentially reducing US GDP by 0.6 per cent and increasing consumer prices by over 0.3 per cent, according to Bloomberg Economics.

Trump also reiterated his long-term manufacturing goals, saying he isn’t aiming to bring back low-end production like textiles but wants the US to focus on semiconductors, military equipment, and AI technologies. He has also threatened to impose 25 per cent tariffs on smartphones made overseas by firms such as Apple and Samsung.

Markets responded quickly to the news. US equity-index futures rose in early Asian trading, while the dollar showed signs of recovery after a dip last week.

As the new deadline approaches, all eyes are now on Washington and Brussels to see whether the two sides can translate this pause into progress — or set the stage for a broader trade conflict.