After the first call between the U.S. and European leaders, Trump will extend the time point for taxes on Europe to July 9, and the EU promises to advance negotiations

Source: Wall Street News

Another twist has emerged in the U.S.-EU trade war. Just two days after threatening to impose 50% tariffs on the EU, Trump has backtracked. Following a phone call with the EU Commission President, he announced a delay in the deadline, buying extra time for bilateral trade negotiations.  

According to CCTV News, U.S. President Trump stated on the 25th local time that the EU had requested to extend the tariff negotiation deadline to July 9, and he had agreed to this request. Trump described the conversation with the EU on tariffs as "very pleasant."  

On the 23rd, Trump posted on social media that he proposed imposing a 50% tariff on goods from the EU starting June 1. He claimed the EU’s main purpose for existence was to "take advantage of the U.S. in trade" and that negotiations between the two sides had made "no progress."  

Media reports indicate that Trump’s decision to postpone the deadline stemmed from an active phone request by EU Commission President von der Leyen. This conversation marked the first public call between the two leaders since Trump took office, with the EU side promising to advance negotiations "swiftly and decisively." Analysts believe the EU’s stance in the trade talks may have shifted from toughness to seeking compromise.  

### EU President Seeks Negotiation Time Through Concession  

On Sunday, Trump stated on social media that he had received von der Leyen’s phone request for an extension, calling it "my honor." This dramatic turnaround came just two days after Trump suddenly escalated the tariff threat from 20% to 50% on Friday.  

Speaking to reporters at Morristown Airport in New Jersey on Sunday, Trump said, "We had a very pleasant call, and I agreed to postpone the deadline."  

"She said she wants to negotiate seriously," Trump told the media. "She said we will come together quickly to see if we can reach a solution."  

Von der Leyen also issued a statement on the X platform, saying, "Europe is ready to advance negotiations swiftly and decisively. To reach a good agreement, we need time until July 9." Analysts interpret this statement as indicating that the EU Commission’s stance may have shifted toward seeking compromise.  

Trump’s external economic advisor Stephen Moore told the media that von der Leyen’s statement was "a hopeful sign" that the EU was "ready to negotiate." However, he also acknowledged that "this may not happen as quickly as Trump would like."  

### Two Months of Stalemate, Still Wide Disagreements  

Trump has long criticized the EU, claiming it was founded to take advantage of the U.S., and has decried the U.S.’s persistent trade deficit with the continent.  

The EU submitted a new trade proposal to the U.S. last week in an attempt to jumpstart negotiations. Reports indicate the new framework covers tariffs and non-tariff barriers, as well as ways to strengthen economic security, mutual investment, strategic procurement, and cooperation on global challenges.  

However, White House officials expressed frustration to the media: "We just aren’t seeing the EU put anything substantial on the table."  

Specifically, the U.S. is dissatisfied that the EU has only offered mutual tariff cuts rather than unilateral reductions, especially when some other trade partners have already made similar unilateral concessions to Washington. Adding to U.S. displeasure is the EU’s failure to include its proposed digital tax as a negotiation point, which is a clear U.S. demand.  

U.S. Deputy Treasury Secretary Faulkender noted in a media program that the U.S. faces a "simultaneous challenge" of negotiating tariffs with the EU as a bloc while separately addressing non-tariff barriers with individual European countries, creating "negotiation problems."  

If no agreement is ultimately reached, the EU has prepared a €21 billion list of retaliatory tariffs, including U.S. corn, wheat, motorcycles, and clothing, and is discussing another €95 billion target list covering Boeing aircraft, automobiles, and bourbon whiskey.  

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