Negotiations on EU Tariffs Extended Following Trump’s Ultimatum

Amid rising tensions over trade tariffs, President Trump has agreed to extend the negotiation deadline for EU tariffs until July 9, following a call with European Commission President Ursula von der Leyen.

U.S. President Donald Trump has announced an extension of the trade negotiations with the European Union, shifting the deadline for tariff discussions to July 9, 2023. This decision comes on the heels of a previous ultimatum where Trump had threatened to escalate tariffs on European goods up to 50%. Initially, he planned to impose a 20% import tax which he reduced to 10% to facilitate further talks.

During a weekend social media post, Trump noted that his call with Ursula von der Leyen was "very nice", indicating that both sides are poised to expedite their negotiations. Von der Leyen echoed this sentiment, asserting that the EU is keen to make progress promptly but would need to make use of the extended deadline for effective discussions.

Trump's previous deadline for negotiations was set for July 8, which aligns closely with the new date. The ongoing trade dispute has been a core part of Trump's agenda, as he has continually criticized the perceived imbalance in trade relationship between the U.S. and the EU. In 2022 alone, the EU exported over $600 billion worth of goods to the U.S., contrasting sharply with the $370 billion in imports from the U.S. to the EU.

Despite the broad implications of Trump's tariff policies—which he claims will safeguard American jobs and enhance domestic manufacturing—economists warn that these taxes may inflate prices for U.S. consumers and disrupt global markets. Current tariffs remain a contentious issue, particularly regarding automotive and agricultural goods, with a 25% tariff still imposed on EU steel and aluminium imports.

While Trump aired his grievances over the slowing negotiations during a press briefing, EU Trade Commissioner Maros Sefcovic reaffirmed the bloc's commitment to reach a fair agreement. He requested that trade relations be conducted with respect, rather than threats, while noting the EU's readiness to address their interests.

Amidst these tensions, both France and Germany have advocated for a diplomatic approach to the issue, warning that continued escalation of tariffs could ultimately damage both economies. The EU has paused its own proposals for tariffs against U.S. goods and is currently considering new measures affecting imports worth €95 billion.