Trump’s tariff delay with the EU: a tactical pause amid strained relations

On 25 May, U.S. President Donald Trump postponed his threat to impose 50% tariffs on European Union imports, extending the deadline from 1 June to 9 July to allow for further trade negotiations.

The decision, announced after a call with European Commission President Ursula von der Leyen, temporarily eased tensions that had roiled global financial markets following Trump’s earlier escalation.

Trump, who has repeatedly expressed disdain for the EU and its treatment of the United States on trade, relented after von der Leyen told him on Sunday that the EU needed more time to come to an agreement.

She asked him during a call to delay the tariffs until July, the deadline he had originally set when he announced new tariffs in April. Trump told reporters he had granted the request.

“We had a very nice call, and I agreed to move it,” Trump said before returning to Washington after a weekend in New Jersey. “She said we will rapidly get together and see if we can work something out.”

Von der Leyen said in a post on X that she had a “good call” with Trump and that the EU was ready to move quickly.

“Europe is ready to advance talks swiftly and decisively,” she said. “To reach a good deal, we would need the time until July 9.”

This move, however, must be analysed in the context of Trump’s longstanding scepticism toward the EU, his preference for bilateral dealings with individual leaders like Italy’s Giorgia Meloni, and the structural constraints of the EU’s Single Market, which delegates trade policy to the European Commission.

The tariff threat and its reversal

Trump’s initial announcement on 23 May to impose 50% tariffs on EU imports effective June 1 disrupted the 90-day negotiation window he had set in April, which was due to conclude on 9 July.

Trump threatens 50% tariffs on EU goods, citing stalled trade talks

The abrupt escalation, driven by frustration over slow progress in trade talks, sent shockwaves through global markets, weakening the U.S. dollar and dragging down major U.S. and European stock indexes.

The threat aligned with Trump’s “America First” trade agenda, which has repeatedly prioritised punitive tariffs to pressure trading partners into concessions. His reversal on Sunday, following von der Leyen’s appeal for more time, suggests a tactical retreat rather than a shift in strategy, as financial market upheaval and diplomatic pushback likely forced a recalibration.

The decision to extend the deadline stabilised markets, with the euro and U.S. dollar rising against safe-haven currencies like the yen and Swiss franc.

Trump’s approach to the EU is shaped by his well-documented disdain for the bloc, which he has repeatedly criticised as a bureaucratic entity that disadvantages the U.S. on trade while relying on American security guarantees.

Dring his first cabinet meeting of his second term on 26 February, Trump didn’t mince his words:

“The European Union has been, it was formed, in order to screw the United States. I mean, look, let’s be honest. The European Union was formed in order to screw the United States. That’s the purpose of it. And they’ve done a good job of it. But now I’m president,” he said.

Trump’s rhetoric often frames the EU as a monolithic adversary rather than a collection of allied nations, a view that contrasts with his preference for direct negotiations with individual leaders. For instance, Trump has cultivated a rapport with Italy’s Prime Minister Giorgia Meloni, whose nationalist stance aligns more closely with his own. During his first term and in recent interactions, Trump has expressed a desire to bypass EU institutions, favoring bilateral deals with countries like Italy, Hungary, or Poland, where he perceives leaders as more amenable to his agenda.

This preference, however, clashes with the EU’s Single Market framework, under which the 27 member states have delegated trade policy to the European Commission. The Commission, led by von der Leyen, negotiates trade agreements on behalf of the entire bloc, limiting the ability of individual leaders like Meloni to strike separate deals.

Trump’s frustration with this centralised structure was evident in his April announcement of tariffs, which targeted the EU as a whole rather than specific nations. His reluctance to engage with EU institutions reflects a broader rejection of multilateral frameworks, which he views as constraining U.S. leverage. This dynamic complicates negotiations, as Trump’s instinct to deal directly with sympathetic leaders is structurally incompatible with the EU’s trade governance.

With Reuters, edited by g.g.

Caption: President Donald Trump checks his phone as he signs executive orders on nuclear energy in the Oval Office of the White House in Washington, D.C., USA, 23 May 2025. Trump signed a total of five executive orders aimed at easing restrictions and expanding the nuclear energy industry. [EPA-EFE/SAMUEL CORUM / POOL]