After Call with Leyen, President Trump Defers Imposition of 50% Tariff on EU

US President Donald Trump has deferred imposition of 50% tariffs on imports from EU into America, till 9th July. On Friday President Trump had announced that 50% of tariff on goods from EU would be imposed from 1st June, 2025. US markets fell on Friday after this announcement.

Yesterday, President Trump deferred this imposition after a call with European Commission President Ursula von der Leyen. The deadline was extended to give more time for negotiations. Earlier, President Trump had expressed frustration over the negotiations that had been done till now.

In 2024, total exports by EU to USA stood at Euro 531.6 billion. Total exports from USA to EU stood at Euro 333.4 billion. America’s trade deficit in the year stood at Euro 198.2 billion.

Data source: Euro Stat

Yesterday, President Trump also added that USA wants to manufacture tanks and Artificial Intelligence devices and not T-shirts and sneakers. This brought some relief to countries such as Vietnam and Bangladesh where a lot of manufacturing outsourcing by American companies is done.

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Source: Eurostate