Trump Postpones 50% EU Tariffs, Giving Markets a Breather Until July 9

In a move that could ease tensions in global markets, US President Donald Trump has agreed to delay his threatened 50% tariffs on European Union goods until July 9, 2025. The decision came after a phone call with European Commission President Ursula von der Leyen, who requested more time to reach a trade agreement.

Trump, who had originally set the tariffs to take effect on June 1, announced the extension on his Truth Social platform. “I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so,” he wrote.

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Von der Leyen confirmed the development on social media platform X, describing it as a “good call” with Trump and noting that “to reach a good deal, we would need the time until July 9.”

Markets Breathe a Sigh of Relief

The postponement comes as welcome news for global markets, which had been roiled by Trump’s Friday threat to impose steep tariffs. Analysts predict that European markets, particularly those with strong trade ties to the US, could see a bounce in response to the extended deadline.

“The tariff delay removes a significant near-term risk for European exporters,” said a strategist at Morgan Stanley. “While uncertainty remains, this buys time for negotiations and could support a relief rally in EU equities.”

Calls for Serious Negotiations

Despite the reprieve, German Finance Minister Lars Klingbeil called for “serious negotiations” with Washington. He warned that “US tariffs endanger the US economy just as much as the German and European economy.”

The potential impact of US-EU trade tensions extends beyond the two regions. Economists note that tariffs could disrupt global supply chains, raise costs for businesses and consumers, and slow economic growth worldwide.

Looking Ahead

As the new July 9 deadline approaches, investors and policymakers will closely watch US-EU trade developments. While the tariff delay offers a temporary reprieve, reaching a comprehensive trade agreement will likely require difficult compromises on both sides.

For now, markets may enjoy a period of reduced trade anxiety. However, the long-term economic outlook will depend on the ability of US and EU leaders to navigate complex trade issues and forge a mutually beneficial path forward.