THE US announced the postponement of a proposed 50 per cent tariff on European Union (EU) goods from June 1 to July 9, to allow additional time for trade negotiations, reports St Petersburg's PortNews.
The decision followed a phone call with European Commission President Ursula von der Leyen, described by US President Donald Trump as a "very nice call".
The announcement came after President Trump's threat to impose the 50 per cent tariff, citing stalled negotiations and describing the EU as "very difficult to deal with."
The EU, comprising 27 member states, is the largest US trade partner. Current US tariffs on EU goods include 25 per cent on steel, aluminum and automobiles, with a 20 per cent "reciprocal" tariff on most imports suspended pending talks, though a baseline 10 per cent tariff remains in effect.
The EU has prepared countermeasures, with the European Commission proposing tariffs on US$107.2 billion of US imports, including aircraft, bourbon and agricultural products, if negotiations fail by July 9.
Said European Union Commission president Ursula Von der Leyen: "Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9."
EU trade chief Maros Sefcovic underscored the need for "mutual respect, not threats," while Bernd Lange, head of the EU's trade committee, warned, "We will not allow ourselves to be pressured and will objectively attempt to begin negotiations next week."
The decision followed weeks of tense trade talks. On April 2, Trump imposed reciprocal duties of up to 50 per cent on 57 trading partners, including the EU, but paused them days later for negotiations until July 9.
A European Commission report on May 19 estimated that US tariff hikes would moderately impact EU GDP but significantly harm the US economy through higher consumer prices, weaker demand, and reduced exports.
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