Donald Trump announced on Wednesday that he would delay a proposed 50% tariff on European Union goods until July 9, 2025. The decision comes after a phone call with Ursula von der Leyen, the president of the European Commission. She positively reiterated her own commitment to progressing US-EU trade negotiations.
In his speech in Morristown, New Jersey, on August 20, 2019, Trump said it was a high priority to get a trade deal. As he put it, “I didn’t just tell anybody who wouldn’t listen, they need to do that.” His remarks hint at larger, continuing frustrations with ongoing EU tendencies toward mercantilist, zero-sum approaches to trade negotiations. He portrayed these negotiations as “very hard to handle.”
The tariff was initially set to go into effect on June 1. Trump reversed course and granted an extension. Trump recounted von der Leyen’s assurance that she “wants to get down to serious negotiations.” He noted her determination to “rapidly get together and see if we can work something out.”
In her announcement of the tariff delay, von der Leyen placed a focus on the EU’s willingness to negotiate. She promised that they would move quickly and with decisiveness. She pointed out that achieving a satisfactory agreement would require sufficient time, stating, “To reach a good deal, we would need the time until July 9.”
Trump’s announcement is made against the backdrop of his own stalled negotiations with the EU, which he recently characterized as “going nowhere.” Even with these hurdles, he remained quite positive about the possibility of striking a deal. In fact, he went on to post on Truth Social later that it was his privilege to agree to the extension.
From all indications as this situation continues to unfold, both leaders seem very willing to work together and develop common ground. The delay in imposing the tariff reflects their mutual interest in fostering trade relations, even as complexities remain in addressing various trade issues.
