Trump Backs Off EU Tariff Threat

By Elke Porter | WBN News Global | May 26, 2025
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U.S. President Donald Trump has postponed a planned 50% tariff on European Union imports, moving the deadline to July 9 following a phone call with European Commission President Ursula von der Leyen. The delay, announced Sunday, offers a window for both sides to return to the negotiating table and potentially avoid an economically disruptive trade escalation.

Markets responded positively to the news, with European stocks rebounding sharply after losses in the previous session. The euro strengthened against the U.S. dollar, marking its highest value since April 30. The rally reflected renewed optimism that the EU and U.S. could reach a compromise before the new deadline.

Call Sparks Diplomatic Reset

Trump described his conversation with von der Leyen as “very nice,” noting her request to shift the tariff start date from June 1 to July 9. “She said she wants to get down to serious negotiation,” Trump told reporters in New Jersey. “I agreed to do that.” He also indicated that both sides were committed to swift action, stating talks would begin “rapidly.”

Despite Trump's previous hardline stance—reaffirming just days earlier that no deal was being sought and that the 50% tariff was imminent—Sunday's reversal marks yet another instance of back-and-forth tariff diplomacy. Von der Leyen, in a post on X (formerly Twitter), confirmed the call and emphasized the importance of the EU-U.S. trade relationship.

Global Markets React

The delay lifted investor confidence beyond Europe. Asian stock markets saw moderate gains, with Japan’s Nikkei 225 climbing 0.8% and South Korea’s KOSPI adding 0.9%. China’s Shanghai Composite rose slightly, while Australia and Taiwan remained flat. Hong Kong’s Hang Seng Index, however, dipped 0.3%.

With tensions eased for now, the spotlight turns to July 9—a deadline that could either seal a pivotal agreement or reignite a high-stakes trade clash.

#Trade Talks 2025 #EU Tariff Delay #Trump Tariffs #Global Markets #EU US Relations #Economic Update #WBN News Global #Elke Porter

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