US President Donald Trump has postponed the imposition of a 50% tariff on all imports from the EU to July. The measure was initially set to take effect on June 1, with Trump citing frustration over stalled progress in trade negotiations with the 27-nation bloc.
Nevertheless, Trump said that it was a “privilege” to grant the extension after a phone call with European Commission President Ursula von der Leyen over the weekend, in a post on Truth Social. von der Leyen said that “Europe is ready to advance talks swiftly and decisively,” in an X post ”To reach a good deal, we would need the time until July 9,” she wrote.
The threat of expanded tariffs has lit a fire under the EU, with negotiations now set to focus only on critical sectors to fast-track the process, according to Bloomberg. Maroš Šefčovič, the European Commissioner for Trade, will lead priority talks in semiconductors, automobiles, pharmaceuticals, and aluminium.
Washington and Brussels have been negotiating a trade deal since early April, when Trump suspended his 20% “reciprocal” tariff on the EU, along with those targeting other nations with which the US shares a trade deficit. The next day, the EU suspended its 25% retaliatory tariffs targeting €21 billion worth of US goods.
However, on May 23, Trump said that the EU “has been very difficult to deal with” and that “discussions with them are going nowhere,” before announcing his plans for the 50% tariff. According to the Financial Times, US negotiators are seeking unilateral tariff reductions on American goods entering the EU market.
Sources told Bloomberg that the EU would like to strike a mutually beneficial deal with the US, but officials are uncertain as to whether Trump shares the same goals. They have also been emphasising to their American counterparts that the two economies are deeply intertwined, and that reaching a deal should be a shared priority.
The US-EU trade war timeline: How we’ve arrived at the delay
Trump has been threatening the EU with tariffs even before his second inauguration, taking issue with its trade surplus in cars, agriculture, oil, and gas, but the battle properly kicked off in March this year.
- March 12, 2025: The US’s expanded tariffs on steel and aluminium imports took effect, both set at 25%. On the same day, the EU threatened countermeasures targeting alcohol and other industrial and agricultural goods from the US.
- March 13, 2025: The US president retaliated by threatening 200% tariffs on EU alcohol in a statement issued via social media.
- March 20, 2025: The EU dropped its alcohol tariffs and postponed the others until mid-April.
- March 27, 2025: The US imposed a 25% tariff on global car imports, a move that disproportionately affected Germany, the world’s largest automotive exporter.
- April 2, 2025: President Trump announced sweeping “reciprocal tariffs,” which included a 20% tariff on all imports from the EU.
- April 9, 2025: The EU prepared 25% retaliatory tariffs targeting €21 billion worth of US goods, set to take effect on April 15. President Trump announced a 90-day suspension of the reciprocal tariffs, temporarily halving the 20% tariff on EU imports to 10%.
- April 10, 2025: The EU suspends its countermeasure plans for 90 days, with hopes of negotiating a trade agreement during the pause.
- May 8, 2025: The EU proposes a list of €95 billion worth of US products that could face tariffs if talks fail, including cars, aircraft, electrical equipment, alcohol, fish, and chemicals.
- Mid-May 2025: Washington and Brussels both send and reject each other’s trade proposals.
- May 23, 2025: Trump announces plans to apply 50% tariff on all imports from the EU from June 1.
- May 25, 2025: Trump extends the date the 50% tariff will take effect to July 9.
During the ongoing negotiation period, Trump has confirmed that he will reinstate reciprocal tariffs on semiconductors and pharmaceuticals, and threatened additional tariffs on sectors such as film industry. Several EU member states have urged the Commission to retaliate should these come to fruition.
Last week, the EU shared a trade proposal with Washington, suggesting the gradual removal of tariffs on selected agricultural and industrial goods, along with mutual investment and procurement plans in artificial intelligence, digital connectivity, and other strategic sectors.
The US has struck deals with both the UK and China this month, suggesting that Trump is open to compromise. However, according to Bloomberg, the EU has no intention of accepting terms similar to those agreed with other countries.
