President Donald Trump has delayed the imposition of 50% tariffs on European Union goods until July 9, following a phone call with European Commission President Ursula von der Leyen. The move gives both sides a window to negotiate and avert a transatlantic trade war.
According to EU officials, the bloc has proposed a “zero-for-zero” deal that would eliminate tariffs on industrial goods, including cars. However, Trump has resisted lowering tariffs below the current 10% level.
In response to the tariff threat, the EU has paused a planned €21 billion retaliation package and is weighing countermeasures targeting €95 billion worth of U.S. products, such as aircraft and bourbon whiskey.
EU Trade Commissioner Maroš Šefčovič is holding talks with U.S. negotiators to boost cooperation in sectors including aerospace, steel, semiconductors and critical minerals. Officials say the goal is to create a balanced trade framework that reduces friction between the two major economies.
Despite these efforts, analysts warn the EU economy could take a hit if the tariffs go ahead. Oxford Economics estimates they could shave up to 1% off the eurozone’s economic output and slash business investment by as much as 6%.
While Brussels hopes to avoid a full-blown trade war, the outcome of negotiations remains uncertain. The next few weeks will be crucial in determining whether both sides can strike a deal and prevent new economic strains across the Atlantic.
