U.S. President Donald Trump has backed off from his threat to impose 50% tariffs on European Union imports starting June 1, 2025, restoring the original July 9 deadline, for trade talks.
The reversal followed a phone call on Sunday, May 25, 2025, with European Commission President Ursula von der Leyen, who requested more time to finalize an agreement. Trump agreed, saying, “We had a very nice call, and I agreed to move it.” Just two days earlier, on Friday, Trump had unexpectedly announced the tariffs would take effect at the start of June, expressing dissatisfaction with the pace of negotiations, Reuters reports.
This abrupt change had rattled global markets, contributing to losses in European shares. However, following Trump’s Sunday reversal, European assets rebounded sharply on Monday, May 26, with the euro reaching its highest level against the U.S. dollar since April 30, 2025.
The original 90-day negotiation window was set by Trump in early April 2025, with a planned conclusion on July 9. Despite earlier statements suggesting he had lost interest in striking a deal, Trump’s latest decision signals a renewed, albeit cautious, willingness to continue talks with the 27-nation bloc.
Von der Leyen confirmed in a post on X that the EU is ready to move “swiftly and decisively” to reach an agreement.
Good call with @POTUS.
The EU and US share the world’s most consequential and close trade relationship.
Europe is ready to advance talks swiftly and decisively.
To reach a good deal, we would need the time until July 9.
— Ursula von der Leyen (@vonderleyen) May 25, 2025
