US President Donald Trump on Sunday said that he would pause his threatened 50 percent tariffs on the EU until July 9, after a “very nice call” with European Commission President Ursula von der Leyen.
Trump on Friday had threatened to impose the steep duties from Saturday, voicing frustration that negotiations to avert a 20 percent “reciprocal” tariff were “going nowhere.”
However, on Sunday he agreed to postpone the tariffs until July 9 after Von der Leyen said the EU needed more time to negotiate.
Photo: AFP
Von der Leyen “just called me ... and she asked for an extension on the June 1st date and she said she wants to get down to serious negotiation,” Trump told reporters before boarding Air Force One in Morristown, New Jersey.
“And I agreed to do that,” he added.
Von der Leyen had earlier said on X that she held a “good call” with Trump, but that “to reach a good deal, we would need the time until July 9.”
“Europe is ready to advance talks swiftly and decisively,” said the head of the European Commission, which conducts trade policy for the 27-nation EU.
European stock markets — which had tumbled on Friday after Trump threatened the 50 percent tariff — yesterday rallied as investors welcomed the delay.
The Paris CAC 40 index rose 1.1 percent in morning deals, while the Frankfurt DAX was up 1.6 percent. London and Wall Street were closed for holidays.
In Asia, Taipei, Hong Kong, Shanghai, Singapore, Wellington, Manila, Bangkok and Jakarta fell, while Tokyo, Seoul and Mumbai rose. Sydney was flat.
The US dollar remained under pressure after dropping on Friday.
CMC Markets PLC analyst Jochen Stanzl said the delay was a familiar “Trump Pattern.”
“The stock market seems to dance to Trump’s tune — first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the US president,” Stanzl said.
Brussels and Washington have been negotiating in a bid to avert an all-out transatlantic trade war and had agreed to suspend tariff action on both sides until July.
The EU is subject to a 10 percent tariff that Trump imposed last month on imports from nearly every country around the world, along with 25 percent duties on cars, steel and aluminum.
The US president originally imposed a 20 percent levy on the EU, but subsequently suspended it, giving space for negotiations.
Brussels has announced plans to impose tariffs on US goods worth nearly 100 billion euros (US$113.8 billion) if negotiations fail to produce a deal.
The US trade deficit in goods with the EU as US$236 billion last year.
However, when taking account of services where US companies are dominant, the European Commission calculates that the US trade deficit stood at US$57 billion.
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