President Donald Trump has postponed the implementation of a proposed 50% tariff on European Union (EU) imports, extending the deadline from June 1 to July 9, 2025.
This decision follows a phone conversation with European Commission President Ursula von der Leyen, during which both leaders expressed a commitment to renewed trade negotiations.
Trump announced the extension on his social media platform, stating, “I agreed to the extension — July 9, 2025 — It was my privilege to do so.” Von der Leyen confirmed the conversation, noting that the EU is “ready to advance talks swiftly and decisively” to reach a mutually beneficial agreement.
The initial tariff threat, which targeted a broad range of EU goods including automobiles and pharmaceuticals, had unsettled global markets.
Following the announcement of the delay, U.S. stock futures and European equities experienced a rebound, with the Dow Jones Industrial Average futures rising by 417 points (1%), the S&P 500 futures gaining 1.1%, and the Nasdaq-100 futures climbing 1.2%. European indexes also saw gains, with Germany’s DAX up 1.6% and France’s CAC 40 rising 1.3%.
Despite the temporary reprieve, analysts caution that the underlying trade tensions remain unresolved. The EU has indicated that failure to reach an agreement by the new deadline could prompt retaliatory measures, potentially targeting U.S. technology firms.
The outcome of the forthcoming negotiations will be critical in determining the future of U.S.-EU trade relations.
