U.S. President Donald Trump has agreed to extend trade negotiations with the European Union until 9 July, following heightened tensions over tariff threats. The extension comes after Trump expressed dissatisfaction with the pace of talks and warned on Friday that tariffs on EU imports could rise to 50% by 1 June if progress was not made.

Originally, Trump had imposed a 20% tariff on most EU goods, later reducing it to 10% to allow for negotiations. The new deadline follows what Trump described as a “very nice” phone conversation with European Commission President Ursula von der Leyen on Sunday. Von der Leyen confirmed the call and stated the EU was prepared to advance negotiations “swiftly and decisively,” adding that the bloc would need until 9 July to reach a constructive deal.

This revised date closely aligns with Trump’s earlier proposed deadline of 8 July, set before he threatened the 50% tariff increase. The U.S. president has repeatedly criticized the EU trade relationship, labelling it unfair despite the EU being one of America’s largest trading partners. In 2024, the EU exported over $600 billion in goods to the U.S. while importing goods worth $370 billion, according to U.S. data.

Trump has defended his broader tariff policy as a strategy to bolster the nation’s manufacturing and protect domestic jobs. However, economists warn that such tariffs could disrupt the global economy and increase costs for American consumers. Tariffs, which are import taxes paid by companies bringing foreign goods into the U.S., have been particularly controversial in relation to automobiles and agricultural products.

Although certain tariffs were paused earlier this year to facilitate negotiations, a 25% duty on EU steel and aluminium remains in force. Trump’s Friday statement at the White House, declaring his readiness to raise tariffs across all EU goods to 50% by 1 June, prompted strong reactions from European officials.

EU trade chief Maros Sefcovic reaffirmed the bloc’s commitment to reaching a fair deal. Following discussions with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick, Sefcovic stated: “The EU’s fully engaged, committed to securing a deal that works for both,” and emphasized that EU-U.S. trade must be guided by “mutual respect, not threats.”

The EU had earlier threatened retaliatory tariffs, including a 25% levy on €18 billion worth of U.S. goods, though this was suspended. Consultations are ongoing regarding further measures on U.S. imports valued at €95 billion.

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