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President Donald Trump has agreed to delay imposing a 50% tariff on European Union(EU) imports until July 9, following a conversation with European Commission President Ursula von der Leyen. This move comes after Trump had previously stated that the tariffs would go into effect on June 1.
According to Trump, von der Leyen requested the delay, saying she wants to engage in serious negotiations. “July 9 would be the day, that was the date she requested. Could we move it from June 1 to July 9? I agreed to do that,” Trump said. Von der Leyen had described the call with Trump as “good” and emphasized the EU’s readiness to advance talks swiftly.
The US and EU share a significant trade relationship, with the US running a $236 billion trade deficit with the EU last year. Trump has expressed concerns over “non-monetary trade barriers” and trade deficits, where the US purchases more from another trading partner than that country purchases from the US.
Trump also mentioned his focus on producing military equipment and embracing technology, stating, “We’re not looking to make sneakers and t-shirts… We want to make military equipment. We want to make big things. We want to do the ‘AI thing’ with the computers.” This stance aligns with his views on trade and manufacturing.
The delay in tariffs is seen as a positive development for markets, with the DOW up 0.61% at 41,603.07, S&P 500 up 0.67% at 5,802.82, and NASDAQ up 1.00% at 18,737.21. The Fear & Greed Index currently stands at 64.
Key Quotes:
- “She said we will rapidly get together and see if we can work something out,” – Donald Trump
- “The EU and US share the world’s most consequential and close trade relationship. Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9,” – Ursula von der Leyen
- “We’re not looking to make sneakers and t-shirts… We want to make military equipment. We want to make big things. We want to do the ‘AI thing’ with the computers,” – Donald Trump