Trump extends EU trade deal deadline to July 9

WASHINGTON DC: U.S. President Donald Trump has extended the deadline to finalize a trade agreement with the European Union until July 9.

The decision follows a phone conversation with European Commission President Ursula von der Leyen, who described the exchange as positive, according to BBC.

Initially, Trump had imposed a 20% tariff on most EU imports, later reducing it to 10% to allow time for negotiations. The temporary rate was set to expire on July 8.

However, on Friday, Trump expressed dissatisfaction with the progress of the talks and warned that he could raise tariffs to 50% by June 1 if no agreement was reached.

Speaking to reporters, Trump said von der Leyen had committed to accelerating the talks, and he later posted on Truth Social that it was his “privilege to extend the deadline.”

Von der Leyen stated that the EU was ready to move quickly toward a deal but needed until July 9 to secure an agreement that benefits both sides.

Meanwhile, EU Trade Commissioner Maroš Šefčovič reiterated the bloc’s dedication to reaching a fair trade deal following discussions with U.S. officials.

“The EU remains fully engaged and committed to a mutually beneficial agreement,” he said, emphasizing the importance of mutual respect over threats.

Trump has consistently criticized the U.S.-EU trade relationship, claiming it is imbalanced. Despite being one of America’s largest trading partners, the EU exported goods worth over $600 billion to the U.S. last year, while importing $370 billion, according to U.S. government data.

The Trump administration has particularly targeted automotive and agricultural products in the talks. Although some tariffs have been temporarily lifted during negotiations, a 25% duty on EU steel and aluminum remains in force.

European leaders have warned against further escalation, with countries like France and Germany calling for a diplomatic resolution to avoid economic harm on both sides.

In response, the EU had prepared retaliatory tariffs worth €18 billion ($20 billion) but paused their implementation. The bloc is also considering further countermeasures on U.S. imports worth up to €95 billion.

(With inputs from BBC)