US president Donald Trump has pushed back the deadline for imposing new 50pc tariffs on the EU by over a month, until 9 July.
Trump announced the extension on his social media platform on 25 May. This comes just two days after he first revealed plans for the new tariffs and threatened to impose them on 1 June, absent a trade deal with the EU.
Trump said he agreed to the delay, after a request from European Commission president Ursula von der Leyen earlier in the day. "Europe is ready to advance talks swiftly and decisively," von der Leyen said on social media site X after what she described as a "good call" with Trump. "To reach a good deal, we would need the time until July 9."
The 9 July deadline is just one day after the expiry of the 90-day pause on an additional 10pc tariff on the EU, which Trump originally imposed as part of his 2 April "liberation day" announcement.
Trump said on 23 May that he was considering a 50pc tariff on imports from the EU, in his first new tariff threat since April. The Trump administration promised "90 deals in 90 days" after rolling out 10pc tariffs in early April, but has so far concluded only two preliminary deals, with the UK and China.
A 50pc tariff — and potential retaliatory measures on US imports imposed by the EU — could significantly disrupt trade in commodities and downstream markets, including electric vehicles. The US was the EU's largest export market last year, accounting for nearly 21pc of all exports, and provided 14pc of all imports, according to EU statistics agency Eurostat.
All imports from the EU have been subject to a 10pc tariff in the US since 5 April, with separate tariffs of 25pc on imports of steel, aluminum, cars and auto parts.
European gas prices plunged on 23 May after Trump threatened the new tariffs. Crude oil futures edged slightly higher in early trading in Asia on 26 May after the delay was announced. Public holidays in the US and UK today may limit market reaction.
