- US President Donald Trump postpones planned 50% tariffs on EU imports, restoring the original July 9 deadline to allow for further negotiations.
- European Commission President Ursula von der Leyen confirms EU’s readiness to move swiftly toward a deal.
- Financial markets react positively, with the euro and US dollar strengthening and European equities recovering prior losses.
In a notable de-escalation of trade tensions, US President Donald Trump has agreed to delay a planned 50% tariff on European Union imports, pushing the effective date back to July 9 to allow for intensified negotiations with the 27-member bloc.
The move came after European Commission President Ursula von der Leyen requested an extension during a phone call on Sunday, citing the need for more time to finalize a trade agreement. Trump, who had announced the tariff threat on Friday citing slow progress in negotiations, confirmed the postponement on Monday, stating:
“We had a very nice call, and I agreed to move it. She said we will rapidly get together and see if we can work something out.”
Von der Leyen echoed the sentiment in a post on social media platform X, noting the EU’s commitment to act swiftly:
“Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”
Market Response
The delay prompted a relief rally in European assets, with the euro climbing to its highest level against the dollar since April 30, and European equity markets recovering losses from the previous session. Safe-haven currencies weakened as investor sentiment improved in response to the eased geopolitical risk.
The development is the latest example of volatility in US trade policy, underscoring concerns among investors and policymakers about the unpredictability of tariff measures and their economic impact.
Did you subscribe to our Daily newsletter?
It’s Free! Click here to Subscribe!
Source: Reuters
