Trump stalls 50% EU tariff threat as talks continue – Daily Business

Markets were handed another dose of uncertainty by US president Donald Trump after he agreed to extend talks on tariffs with the European Union until 9 July.

On Friday Mr Trump threatened to lift the tariff to 50% by the end of this week (1 June) from a previous deadline of 8 July. That followed his initial 20% rate, later cut to 10%.

One analyst said markets did not like the constant changing of policy but “Trump fatigue” was beginning to creep in and European stock index futures gained 1.6% this morning.

Another market observer, Nigel Green, CEO of global financial advisory giant deVere Group, said: “This kind of erratic policymaking is not a sign of economic strength. It’s a growing liability.

“Trump’s flip-flopping on major trade issues is undermining America’s standing as a trusted commercial partner.”

The latest move comes after European Commission President Ursula von der Leyen said she had a “good call” with Trump on Sunday. She told him “we will rapidly get together and see if we can work something out”.

Mr Trump, who believes the EU is getting an unfair trade advantage over the US, posted on his Truth Social network that it was his “privilege to extend the deadline”.

He has been particularly concerned over the trade in cars and agricultural goods. A 25% levy on EU steel and aluminium remains in place.

Following a call with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick, Sefcovic said: “The EU’s fully engaged, committed to securing a deal that works for both.”

European leaders continue to warn against an escalation of the antagonistic dialogue. France and Germany have called for a diplomatic solution, stressing that tariffs would harm both economies.