Trump's tariffs on the EU are postponed after trade talks with Bloc chief executive – Country
The EU said on Monday that it called “New Power” to negotiate a deal over the weekend between U.S. President Donald Trump and EU Chief Usura von Leyen.
Trump resumed the July 9 deadline to allow talks between Washington and the Group of 27 countries, following what he said was “very good call” with Von der Leyen's “very good call”, an EU spokesman said she was initiated by her.
On Monday, the euro hit a month's high against the dollar, while European stocks soared and are expected to make up for losses from the last meeting. Gold prices fell as Trump's latest move reduced demand for safe haven assets.
A spokesman for the European Commission said the U.S. and EU trade representatives in the European era will hold talks Monday afternoon and refused to provide any information on what Trump and Von der Leyen called.
“There is a new negotiating momentum now, and we will start from there,” the spokesperson said.
“They agreed to quickly track trade negotiations and keep in close contact.”
German Economy Minister Katherina Reiche called for tariff negotiations to proceed calmly. “We have to find a common path,” she said.
Trump said on Friday that he recommended 50% tariffs take effect from June 1, frustrated that trade talks with the EU were not fast enough. The threat swept global financial markets and strengthened a trade war that was interrupted by frequent changes in tariff policies for U.S. trading partners and allies.
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Two days later, the U.S. president's gentle stance marks another temporary probation in his unstable trade policy, even as the latest decision making whip reminds policymakers and investors how quickly the environment can change.
“It is possible to reach an agreement with the EU on July 9,” said Michael Pfister, currency strategist at Commerzbank.
“But what has changed in terms of the basic issues after the call is questionable. One thing should be clear after the announcement Friday: the brief breath of tariffs we enjoy is only temporary.”
EU trade chief Maros Sefcovic is scheduled to hold a video conference on Monday with CEOs of Mercedes-Benz Mbgn.de, Volkswagen Vowg_p.de, BMW BMWG.DE and Stellantis Stlam.mi, as businesses want to know what plans, if any,
Despite relief, the German-owned Lapp Group will go from cables and wires to factory robotics, warning that some of its specialized products will still be affected by planned tariffs and a turbulent business environment.
“Unfortunately, current American politics is characterized by unpredictability, personal interests and populism,” CEO Matthias Lapp told Reuters.
“Germany’s good transatlantic relations have built up for decades of diplomacy and mutual understanding. But confidence in its stability is currently under great damage.”
Trump, President of the Commission, told him on Sunday that the EU would need more time to reach a deal, and he has repeatedly expressed disdain for the EU and its treatment for the United States.
She called him to postpone the tariffs until July, a deadline he initially set when he announced the new tariffs in April. Trump told reporters that he had approved the request.
“I agree to move,” Trump said before returning to Washington after a weekend in New Jersey. “She said we will get together quickly and see if we can solve some problems.”
Von der Leyen said in an article on X that she had a “good call” with Trump and that the EU was ready to move quickly.
“Europe is ready to negotiate quickly and decisively,” she said. “To reach a good deal, we will need time until July 9.”
Negotiations are in a dilemma, with Washington demanding Brussels’ unilateral concessions open to the United States, while the EU seeks a deal that both sides can gain.
The EU already faces 25% U.S. import tariffs, with its so-called “countdown” tariffs for steel, aluminum and cars and nearly all other commodities of 10%, a tax that will rise to 20% after Trump's 90-day pause expired in July.
In the absence of transactions, the taxation could increase to 50%, which could increase consumer prices for all factors, from Germany’s BMWS BMWG.DE and Porsches PSHG_P.DE to Italian olive oil and hurt demand for French luxury handbags LVMH.PA, PRTP.PA.
However, it is unclear whether the 50% tariff threat applies to all EU imports or only to U.S. “Reciprocal” tariffs, which do not apply to steel, automobiles, and other products under investigation, such as semiconductors, pharmaceutical products and wood.
–Other reports by Jan Strupczewski, Amanda Cooper, Charlotte Van Campenhout, Nikhil Sharma, Christop Steitz, Ludwig Burger, Richard Lough, Christian Kraemer; writing by Ingrid Melander; edited by Philippa Fletcher
