A significant diplomatic breakthrough occurred Sunday when US President Donald Trump announced he would delay implementing 50% tariffs on European Union goods until July 9, following what he described as a productive conversation with European Commission President Ursula von der Leyen. The postponement marks a stark reversal from Trump’s Friday announcement when he claimed negotiations were “going nowhere” and accelerated the implementation timeline.
The European Commission confirmed that von der Leyen initiated the call that led to the reprieve, with both leaders agreeing “to fast-track the trade negotiations and to stay in close contact.” This development has revitalized hopes for a negotiated solution, with EU Trade Commissioner Maroš Šefčovič reporting “good calls” with his US counterparts and expressing the Commission’s full commitment to “constructive and focused efforts at pace” toward an agreement.
European markets responded positively to the news, with the Stoxx Europe 600 index recovering Friday’s losses. However, businesses face continued uncertainty as they navigate the unpredictable nature of Trump’s trade policy, with many having already withdrawn financial forecasts in response to earlier announcements. Meanwhile, Italy’s Prime Minister Giorgia Meloni is reportedly working to arrange a face-to-face meeting between Trump and European leaders in early June, potentially creating another path toward resolution.