Washington: President Donald Trump announced Sunday that he will postpone a planned 50% tariff on European Union imports until July 9, marking another reversal after previously threatening steep trade penalties that shook market confidence.
Trump said the decision came after a “very nice” phone conversation with European Commission President Ursula von der Leyen. Speaking to reporters in New Jersey, Trump explained that von der Leyen requested a delay to allow for serious negotiations.
“She said July 9 would work better for talks, and I agreed,” Trump stated, adding that both sides plan to engage quickly to try to resolve their trade differences.
The announcement comes just two days after Trump insisted he wasn’t seeking a deal and confirmed the tariffs would take effect on June 1. The 50% rate would have followed an earlier 20% tariff he imposed in April, which was also delayed. Despite his tough talk, Trump has often backtracked on tariff threats during trade disputes.
Shortly after his comments, Trump reiterated on Truth Social that talks with the EU would start "rapidly."
Von der Leyen also shared her view on social media, calling the call with Trump “good” and affirming Europe’s readiness to move forward quickly. “To reach a good deal, we need time until July 9,” she posted on X.
The announcement had a modest impact on Asian markets. Japan’s Nikkei 225 gained 0.8%, South Korea’s KOSPI rose 0.9%, and China’s Shanghai Composite saw a 0.3% uptick. Other markets were mostly stable, with Taiwan and Australia trading flat and Hong Kong’s Hang Seng Index dipping 0.3%.
The U.S. trade deficit with the EU hit a record $236 billion last year, a figure Trump has cited frequently to justify his tariff plans. He has also criticized what he calls "non-monetary trade barriers" imposed by other countries.
In a separate comment, Trump expressed agreement with Treasury Secretary Scott Bessent’s recent remarks on manufacturing, suggesting the U.S. should focus on producing advanced goods like military equipment and AI technology, rather than consumer items like sneakers or t-shirts.
“We want to make big things,” Trump said. “We want to do the ‘AI thing’ with the computers.”
