TLDR
- Trump delayed 50% EU tariffs from June 1 to July 9 after phone call with EU Commission President Ursula von der Leyen
- The delay gives both sides time to negotiate after Trump previously said talks were “going nowhere”
- EU is preparing $108 billion in retaliatory tariffs if negotiations fail
- Asian stock markets posted modest gains following news of the tariff delay
- US ran a $236 billion trade deficit with the EU last year, which Trump wants to address
President Donald Trump reversed his threat to impose 50% tariffs on European Union imports after a phone conversation with EU Commission President Ursula von der Leyen. The tariffs, originally set for June 1, are now delayed until July 9.
🚨 LATEST: Trump delays 50% EU tariffs until July 9 🇺🇸🇪🇺
S&P 500 futures up 1.28%, Nasdaq futures up 1.43% from Friday’s close 📈 pic.twitter.com/4XbAQKnHDR
— Trader Edge (@Pro_Trader_Edge) May 26, 2025
Trump announced the delay Sunday while speaking to reporters at Morristown Municipal Airport in New Jersey. He described the call with von der Leyen as “very nice” and said she requested the delay to allow time for negotiations.
“July 9 would be the day, that was the date she requested,” Trump told reporters. “Could we move it from June 1 to July 9? I agreed to do that.”
The delay marks another instance of Trump threatening tariffs only to walk them back later. Just two days earlier, he called the EU “very difficult to deal with” and said discussions were “going nowhere.”
Von der Leyen posted on social media that the call gave “new impetus for the negotiations.” She emphasized that Europe was ready to advance talks “swiftly and decisively” but needed time until July 9 to reach a good deal.
The US has been pressuring the EU to reduce tariffs on American goods. Last year, the United States ran a $236 billion trade deficit with the EU, according to Commerce Department data.
EU Prepares Retaliatory Measures
The European Union is preparing $108 billion in retaliatory tariffs if trade talks fail. EU leaders projected “calm” in their initial response to Trump’s threats on Friday.
Trump had escalated his trade war late last week by targeting both Apple and the EU. He threatened Apple with 25% tariffs on non-US-made iPhones in posts on Truth Social.
Markets React to Delay News
Asian stock markets posted modest gains Monday following news of the tariff delay. Japan’s Nikkei 225 rose 0.8% in early trading while South Korea’s KOSPI gained 0.9%.
China’s Shanghai Composite Index edged up 0.3%. Taiwan’s TAIEX and Australia’s S&P/ASX 200 traded relatively flat while Hong Kong’s Hang Seng Index slipped 0.3%.
Apple stock had lost ground Friday alongside a broader market decline when Trump first made his tariff threats. Treasury Secretary Scott Bessent tried to calm market concerns by promising “several” large trade deals in coming weeks.
Trump has focused on addressing what he calls “non-monetary trade barriers” and trade deficits. The 50% tariff would have followed a 20% reciprocal tariff on the EU that Trump imposed in April.
Trump also commented Sunday that he agreed with Bessent’s recent remarks about not needing to return textile manufacturing to the United States. “We’re not looking to make sneakers and t-shirts,” Trump said, adding that America should focus on military equipment and artificial intelligence technology.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
