Trump EU Tariff Threat has been postponed, easing market tensions. On Monday, US President Donald Trump backed away from his plan to impose 50% tariffs on European Union imports starting June 1. Instead, he restored a July 9 deadline, giving both sides more time to reach a trade agreement.

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The delay caused European markets to rebound. The euro rose to its highest since April 30. Meanwhile, European stocks surged, recovering losses from the previous session.

Why Trump Backed Off ?

On Friday, Trump had warned of immediate tariffs, blaming slow progress in trade talks. This warning shocked global markets and added uncertainty to trade relations.

However, two days later, Trump reversed his decision. European Commission President Ursula von der Leyen called Trump on Sunday and requested more time. He agreed to her appeal and said talks would resume soon.

“We had a very nice call,” Trump told reporters. “She said we’ll rapidly get together and see if we can work something out.”

Tariff Threat and the July 9 Deadline

This is not the first time the Trump EU Tariff Threat has shifted. In April, Trump had set a 90-day window for talks, ending July 9. His sudden Friday threat disrupted this schedule. Now, the original deadline is back, offering hope for negotiation.

Von der Leyen confirmed the update in a post on X. “Europe is ready to advance talks swiftly and decisively,” she wrote.

Markets React to Trump EU Tariff Threat Delay

The Tariff Threat delay gave relief to investors. The pan-European STOXX 600 index rose 1% by 0710 GMT. The auto and luxury sectors rebounded strongly. Car makers like BMW and luxury brands gained momentum after suffering on Friday.

Oil prices also edged up as global markets calmed.

Outlook: Will the Trump EU Tariff Threat Return?

Despite the pause, risks remain. The EU already faces 25% US tariffs on several goods. If no deal is reached, tariffs could rise to 50% by July.

Trump’s America First approach and his frustration with EU trade policy keep tensions high. The Trump EU Tariff Threat may return if talks fail. For now, all eyes are on July 9.

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