Supply chains were given another brief respite this week after the US government delayed a planned 50% tariff rate on European Union imports until 9 July.
US president Donald Trump said on his Truth Social platform on 23 May that he had recommended a tariff rate of 50% on goods from the European Union to start on 1 June, in response to the US trade deficit with the bloc.
However, Trump said on 25 May that he had reached an agreement with European Commission president Ursula von der Leyen to postpone the tariff implementation date with the aim of allowing more time for negotiations.
In a post on Truth Social, he said: "I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly."
On the same day, von der Leyen posted on X that there had been a "good call" with Trump. She added: "Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9."
The US had earlier in the year announced tariffs of 20% on the European but this was delayed to allow discussions to take place over a 90-day period due to end in July.
Trump first announced tariffs were being considered for the EU in January in order to address a trade imbalance. He said during a press conference that the "EU is very, very bad to us" and tariffs are "the only way you are going to get back fairness".
