Trump delays EU tariffs until July 9 after Von der Leyen phone call

U.S. President Donald Trump has announced he would pause his threatened 50 percent tariffs on the European Union until July 9, after a "very nice call" with European Commision president Ursula von der Leyen.

Trump had threatened on Friday to impose the steep duties from June 1, voicing frustration that negotiations to avert a 20-percent "reciprocal" tariff were "going nowhere".

But he agreed on Sunday to delay the tariffs until July 9 after Von der Leyen said the European Union needed more time to negotiate.

Von der Leyen "just called me... and she asked for an extension on the June 1 date and she said she wants to get down to serious negotiation," Trump told reporters before boarding Air Force One in Morristown, New Jersey.

"And I agreed to do that," he added.

Von der Leyen had earlier said on X that she held a "good call" with Trump but that "to reach a good deal, we would need the time until July 9."

"Europe is ready to advance talks swiftly and decisively," said the head of the European Commission, which conducts trade policy for the 27-nation EU.

Stock markets rally

European stock markets – which had tumbled on Friday after Trump threatened the 50 percent tariff – rallied on Monday as investors welcomed the delay.

The euro hit its highest level against the dollar since April 30, while European shares surged and were poised to recoup the previous session's losses.

The Paris CAC 40 index rose 1.1 percent in morning deals while the Frankfurt DAX was up 1.6 percent. London and Wall Street were closed for holidays.

Jochen Stanzl, analyst at trading platform CMC Markets, said the delay was a familiar pattern.

"The stock market seems to dance to Trump's tune – first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the U.S. president," Stanzl said.

Trump's trade policies have raised concerns that they could spark a recession and fuel inflation, while his stop-start tariff announcements have sent stock markets on a roller-coaster ride.

'Serious negotiations'

Brussels and Washington have been negotiating in a bid to avert an all-out transatlantic trade war and had agreed to suspend tariff action on both sides until July. But Trump's threat on Friday dramatically raised the stakes.

The U.S. leader said on Friday he was "not looking for a deal" with the EU, repeating his oft-stated view that the bloc was created to "take advantage" of the United States.

German Finance Minister Lars Klingbeil called for "serious negotiations" with Washington, saying he had spoken to U.S. Treasury Secretary Scott Bessent about the matter.

"We don't need any further provocations but serious negotiations," Klingbeil, who is also Germany's vice chancellor, told Bild newspaper.

"The U.S. tariffs endanger the U.S. economy just as much as the German and European economy," Klingbeil warned.

The EU is subject to a 10 percent tariff that Trump imposed last month on imports from nearly every country around the world, along with 25 percent duties on cars, steel and aluminum.

The U.S. president originally imposed a 20 percent levy on the EU but subsequently suspended it, giving space for negotiations.

EU trade commissioner Maros Sefcovic, who held talks with his US counterparts on Friday, said the bloc was "committed to securing a deal" but that trade ties should be based on "mutual respect, not threats".

Brussels has announced plans to impose tariffs on U.S. goods worth more than $110 billion if negotiations fail to produce a deal.

The U.S. trade deficit in goods with the European Union was $236 billion in 2024. But when taking account of services, where U.S. firms are dominant, the European Commission calculates that the U.S. trade deficit stood at $57 billion.

Earlier this month, Trump reached a trade deal with Britain – though he maintained the 10 percent "baseline" tariff on the country – and he temporarily reduced his massive levies on China to give space for negotiations.