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Donald Trump agreed to delay 50% tariffs on the EU and extend trade negotiations until July 9 after a conversation with the European Commission’s Ursula von der Reyen on Sunday.
Trump told reporters that von der Leyen had asked for an extension two days after he told him that he would impose sudden tariffs on EU imports starting June 1 in response to what the US president said was unsatisfactory negotiations with Brussels.
“She said she wanted to start working on serious negotiations,” Trump told reporters. “We got a very nice call and I agreed to move (date).”
“She said we’d get together quickly and see if we could solve anything.”
Von Der Leyen previously received a “good call” with the US president in a social media post, saying that while the EU is ready to “quickly and decisively” move forward with trade talks, Trump needs to return to its original 90-day negotiation period.
“We’ll need time until July 9th to reach a significant deal,” von der Reyen said in a social media post.
This was the first public call between the two leaders since Trump took office. Von Der Leyen’s office confirmed that she has begun contacting them.
Trump’s threat of 50% tariffs on Friday represented a major escalation of the transatlantic trade war, shocking European negotiations. The US president suspended the initial levy of 20% tariffs on the EU in April and began negotiations for 90 days, scheduled to end on July 9th.
The euro strengthened 0.4% against the dollar on Monday, but European equity futures rose. Contracts tracking the Stoxx 50 increased by 1.7%, while contracts for the German DAX index increased by 1.6%.
Von Der Leyen’s statement suggested the possibility of a change in the committee’s attitude towards finding compromises. On Friday, von der Leyen’s lead trade negotiator Maros Schiffchovich called for “mutual respect, not threats,” and Brussels said he would “protect our interests” in response to Trump’s escalation.
Treasury Secretary Scott Bescent has told Fox News that he “hopefully sets a fire under the EU” after Trump threatened to impose a 50% tariff later Friday.
White House officials said Sunday before Trump’s announcement that he was unhappy that Trump wasn’t engaged like other countries. “I’ve never seen any material coming out of the EU,” a White House official said.
Trump’s external economic adviser Stephen Moore said von der Leyen’s statement was a “promising sign” that the EU is “ready to negotiate.”
“It may not be as fast as Trump wants to see, but I think it’s a peace offering,” Moore told the Financial Times.
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Officials on both sides acknowledge the lack of progress in the EU-US consultations as negotiators stick to their longstanding position. Trump attacked the EU for claiming he was an unfair trade practice, but EU officials say the US has refused to consider the surplus of huge services with the bloc.
If Trump follows his threat, the EU will prepare a 21 billion euro tariff package for US items such as corn, wheat, motorcycles and clothing, as well as discussing an additional list worth 95 billion euros of other targets such as Boeing aircraft, cars and bourbon whiskey.
Additional Reports by Arjun Neil Alim in Hong Kong
