NewsHail
26 May 2025
President Donald Trump agreed to wait until July 9 to put new tariffs on the European Union (EU). This happened after a phone call with Ursula von der Leyen, the leader of the European Commission. She asked for more time to work on a trade deal. Trump said the call was very nice. He agreed to the delay and said talks will start soon.
Last month, Trump said he would add a 20% tariff on most goods from the EU. Then, he lowered it to 10% and gave a deadline of June 1 to make a deal. On Friday, Trump said he might raise the tariff to 50% because talks were slow.
After the call, Trump wrote online that he agreed to extend the deadline to July 9. He said the EU will start talks quickly. Von der Leyen also said the EU is ready to work fast on a deal.
The EU and the US trade a lot. The EU sells over $600 billion in goods to the US. The US sells about $370 billion to the EU. Trump says this is unfair. He is especially worried about cars and farm goods.
Trump’s threat on Friday made the stock market drop. The Dow Jones fell by 256 points. The Nasdaq and S&P 500 also went down.
EU leaders want to avoid a trade war. France and Germany say a trade war would hurt both sides. The EU said it might add tariffs on US goods but has paused that for now.
Trump has made trade deals with the UK. He also started one with China. He says countries must act fast to get deals. He warned that higher tariffs could still come if talks fail.
