Washington, May 26, 2025 — US President Donald Trump has suspended the planned 50% tariff on European Union (EU) goods until July 9. The decision came after a phone conversation with European Commission President Ursula von der Leyen.
Background of the Discussion
President Trump recently threatened to impose a 50% tariff on EU products starting from June 1. Following the announcement, European leaders expressed concern and called for a solution through negotiations. Von der Leyen phoned Trump requesting more time so both sides could reach a mutually acceptable trade agreement.
Trump's Remarks
Speaking to reporters at Morristown Municipal Airport in New Jersey, Trump said, “Von der Leyen said she wants to sit down and negotiate. July 9 will be that day, as she requested. Can we extend the time from June 1 to July 9? I agreed.” He added, “She said we’ll get together quickly and see if we can come to a solution.”
European Union's Reaction
Von der Leyen posted on X (formerly Twitter), stating she had a “detailed conversation” with Trump. She wrote, “The EU and the United States share the most important and closest trade relationship in the world. Europe is ready to move swiftly and firmly in negotiations. We need time until July 9 to secure a good deal.”
Market Response
Following the news of the suspension, Asian stock markets saw a slight uptick on Monday (May 26). Japan’s Nikkei 225 index rose 0.8% in early trading, South Korea’s KOSPI increased 0.9%, and China’s Shanghai Composite gained 0.3%. Taiwan’s TAIEX and Australia’s S&P/ASX 200 remained mostly steady, while Hong Kong’s Hang Seng index fell 0.3%.
Outlook
Analysts believe the suspension presents a vital opportunity for both sides to reach an acceptable trade agreement. However, if talks fail to progress, the 50% tariff may take effect from July 9, potentially sparking new tensions in global trade.
Conclusion
Trump’s decision marks a critical turning point in EU-US trade relations. The coming days will be crucial, as the outcome of negotiations may significantly impact the global economy.