ISLAMABAD: US President Donald Trump has agreed to postpone the implementation of proposed tariffs on imports from the European Union (EU) until July 9, allowing more time for negotiations between Washington and the 27-member bloc.
This decision comes after Trump’s initial threat to impose 50 percent tariffs starting June 1, which had rattled global markets and escalated tensions in ongoing trade disputes.
Trump had announced on Friday that the tariffs would be applied due to frustration over slow progress in trade talks with the EU.
His threat caused immediate reactions in financial markets worldwide, highlighting the volatility caused by his unpredictable trade policies. The tariffs were part of a broader “America First” trade agenda that has strained relationships with longstanding allies.
Good call with @POTUS.
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 (@vonderleyen) May 25, 2025
However, after a phone call with European Commission President Ursula von der Leyen on Sunday, Trump agreed to extend the deadline. Von der Leyen requested more time for the EU to finalize an agreement, which Trump accepted. “We had a very nice call, and I agreed to move it,” Trump said before returning to Washington. Von der Leyen expressed optimism, stating the EU was ready to “advance talks swiftly and decisively” and needed until July 9 to reach a “good deal.”
Financial markets responded positively to the extension, with the euro and US dollar strengthening against traditionally safe-haven currencies like the yen and Swiss franc.
The initial 90-day negotiation period, which began in April, was supposed to end on July 9. Trump’s announcement on Friday that he was no longer interested in a deal, instead opting for immediate tariffs, had disrupted the timeline and worsened market uncertainty.
Despite some progress with other partners such as Britain and ongoing talks with China, trade negotiations with the EU remain complicated, reflecting deeper political and economic tensions between Washington and Europe.
