EU–US Tariff Talks Extended to July 9, but Negotiations Remain Stalled

On 25 May 2025, President Donald Trump announced a postponement of the planned 50% tariff on all imports from the European Union. Initially scheduled to take effect on 1 June, the measure has now been delayed until 9 July. The decision followed a phone call with the President of the European Commission, who described the exchange on social media as a “good call with @POTUS,” adding that “to reach a good deal, we would need the time until July 9.”

Despite this temporary reprieve, negotiations between the two sides remain fraught with difficulties. According to reporting by Alberto Nardelli and Jorge Vale (Bloomberg), the talks have encountered persistent obstacles, and there is currently no clear path toward a mutually acceptable agreement. European officials have expressed frustration over a lack of clarity regarding U.S. demands, as well as uncertainty about who is authorized to speak on behalf of the American administration. On the other side, the United States has accused the EU of unfairly targeting U.S. companies through litigation and regulatory practices.

In preparation for a possible breakdown in negotiations, the European Union has already approved retaliatory tariffs worth €21 billion on American goods. These measures are intended as a response to U.S. tariffs on European metals. In parallel, the EU is working on a second list of potential tariffs covering up to €95 billion in U.S. products. This list, which reportedly includes bourbon and other high-profile items, is intended to counter possible U.S. actions related to “reciprocal” tariffs and duties on automobiles. With the deadline extended to July, both sides now have a limited window to navigate their differences. However, the underlying tensions and lack of consensus continue to cast doubt on the prospects of a near-term resolution.

Photo credit: Freepik
Source: The Edge