— By Somya Abrol — 

With the 1 June deadline for 50% tariffs on European imports approaching, US President Donald Trump has decided to delay the levy till 9 July. “I agreed to the extension – July 9, 2025 – It was my privilege to do so. The Commission President said that talks will begin rapidly,” said Trump’s post on Truth Social.

European Commission President Ursula von der Leyen said on 25 May that they had a “good call” but the EU would need until July to reach a deal with Trump. She shared optimism on pushing negotiations forward to make the deadline. “The EU and the US share the world’s most consequential and close trade relationship,” she wrote on the X social-media platform. “Europe is ready to advance talks swiftly and decisively.”

Related: US, UK unveil tariff changes / Trump’s 10% levy remains largely in effect

The European Union now is facing the same 10% tariff as other countries. Trump had originally announced 20% “reciprocal tariffs” on the EU on 2 April before reducing them to 10% for 90 days.

In the second week of April, the EU decided to defer its retaliatory 25% tariffs on US goods for 90 days on EUR 21 bn of US goods. At the time von der Leyen said, “We want to give negotiations a chance.”

The euro rallied in response to the latest announcement, at press time appreciating 0.35% – its highest since 29 April, Reuters reports. The dollar index, however, dropped to its lowest since 22 April, sinking by 0.3%.