Trump Extends EU Trade Talks After Threatening 50% Tariff on Imports
By Rachel Hagan, BBC News
Published: 1 day ago
US President Donald Trump has agreed to extend the deadline for trade negotiations with the European Union to 9 July, following a public threat to impose a 50% tariff on EU goods if no deal was reached by 1 June.
The decision came after what Trump described as a “very nice” call with European Commission President Ursula von der Leyen, who confirmed the EU’s readiness to move negotiations forward “swiftly and decisively.”
“To reach a good deal, we would need the time until July 9,” von der Leyen wrote on social media.
Trump had initially proposed a 20% tariff on most EU goods in May but reduced it to 10% to give room for discussions. However, his frustration with the slow pace of talks resurfaced Friday when he suggested hiking tariffs on all EU imports to 50%, creating further uncertainty in global markets.
Dispute Over Trade Imbalance
Trump has long accused the EU of unfair trade practices, pointing to a substantial trade deficit. In 2023, EU nations exported over $600 billion in goods to the US while importing just $370 billion, according to US data.
His administration argues that increased tariffs will protect American industries and boost domestic jobs, particularly in automobile and agriculture sectors.
However, critics—including many economists—warn that such tariffs would:
- Increase prices for American consumers
- Disrupt global supply chains
- Risk retaliation from key trading partners
EU Responds: ‘Mutual Respect, Not Threats’
Speaking after a call with US trade officials, EU Trade Commissioner Maros Sefcovic emphasized the EU’s commitment to a mutually beneficial deal.
“EU-US trade is unmatched and must be guided by mutual respect, not threats,” he said.
“We stand ready to defend our interests.”
Earlier this year, the EU paused a planned 25% tariff on €18 billion worth of US goods in a gesture to promote negotiation. However, it is currently reviewing additional retaliatory measures worth up to €95 billion, should talks fail.
Meanwhile, France and Germany have warned of the economic risks of escalation, urging a diplomatic resolution to prevent damage on both sides.
Existing Tariffs Still in Place
While some tariffs have been suspended, the US still enforces a 25% levy on EU steel and aluminium, which remains a sticking point in negotiations.
Trump’s trade agenda continues to provoke intense debate, with supporters praising his tough stance on foreign competitors and critics accusing him of destabilizing international markets.
