European Union leaders are racing against time after US President Donald Trump postponed his threatened 50% tariffs until July 9, following a direct appeal from European Commission President Ursula von der Leyen. The five-week extension provides a critical opportunity for negotiators to find common ground after Trump had previously claimed talks were stalled and accelerated his tariff implementation timeline.
“There has been a good exchange between President Trump and President von der Leyen and I hope we can continue on this road and return to the lowest possible tariffs that will allow for fruitful exchanges,” said French President Emmanuel Macron during a trip to Vietnam. Ireland’s Foreign Minister Simon Harris emphasized the urgency of the situation, stating there was “no time to waste” to find a deal beneficial for both economies.
The stakes remain extraordinarily high for European businesses, particularly automakers. EU Trade Commissioner Maroš Šefčovič held an emergency video conference with chief executives from Mercedes-Benz, Volkswagen, BMW, and Stellantis to address concerns, as Trump’s existing 25% tariffs on steel, aluminum, and cars remain in effect. Meanwhile, the EU has positioned retaliatory measures targeting $22.5 billion of US goods that will automatically trigger on July 14 without a deal, with plans for an additional round affecting $101 billion of US products in development.