President Donald Trump has delayed the implementation of a proposed 50% tariff on European Union imports until July 9, 2025.
This decision follows a phone conversation with European Commission President Ursula von der Leyen, who requested additional time to negotiate a trade agreement.
The initial announcement of the tariffs had unsettled financial markets, leading to significant declines in major indices. However, the postponement has provided a temporary reprieve, with U.S. stock futures and European equities rebounding.
The EU has expressed a preference for a diplomatic resolution and has proposed a “zero-for-zero” tariff agreement on industrial goods. Nevertheless, the bloc is preparing countermeasures in case negotiations fail.
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The delay offers both sides an opportunity to work towards a mutually beneficial trade agreement and avoid further escalation of trade tensions.
