After a call with European Commission President von der Leyen, US President Donald Trump said he would postpone the implementation of the 50% tariffs facing the EU to July 9.
Trump told reporters at Morristown Airport in New Jersey on his way back to Washington on Sunday, "We had a very good call and I agreed to change the time."
Von der Leyen posted on social media X earlier on Sunday that "Europe is ready to move forward quickly and decisively in negotiations," but "reaching a good agreement" will take "time, until July 9." July 9 is the end date of Trump's 90-day suspension of reciprocal tariffs.
According to the reciprocal tariff measures announced in April, the EU was originally intended to be subject to a tariff rate of 20%, but after the high reciprocal tariffs were suspended, a 10% baseline tariff rate was temporarily implemented until July 9.
Still, Trump threatened on Friday to impose higher tariffs of 50% on the EU starting June 1 after complaining that the bloc was moving slowly in negotiations and unfairly targeting U.S. companies through litigation and regulation.
The EU has struggled to understand Trump’s intentions in trade talks. Officials have previously suggested that the EU and the U.S. could reduce tariffs to zero on many goods, but Trump has focused on what he calls non-tariff trade barriers.
Deputy Treasury Secretary Michael Faulkender said hours earlier on Fox’s Sunday Morning Futures that the U.S. “faces the simultaneous challenge” of negotiating tariffs with the EU as a whole while trying to address most non-tariff barriers in negotiations with individual European countries, a “negotiating problem.”
The EU shared new trade proposals with the U.S. last week in hopes of moving negotiations forward, and EU Trade Representative Maros Sefcovic spoke with U.S. Trade Representative Greer on Friday.
The new EU framework covers tariffs and non-tariff barriers, as well as ways to enhance economic security, mutual investment, strategic sourcing and cooperation to address global challenges, according to people familiar with the matter, who requested anonymity to discuss non-public information.
According to agency calculations, Trump's 50% tariff threat will hit US-EU goods trade worth $321 billion, which will cause the US gross domestic product (GDP) to be pulled down by nearly 0.6% and prices to be raised by more than 0.3%.
Trump previously said he hopes to use tariffs to encourage companies to build factories in the United States instead of manufacturing goods overseas. On the same day he announced that he would impose a 50% tariff on the European Union, he also threatened to impose a 25% tariff on smartphones produced overseas by companies such as Apple and Samsung Electronics.
However, Trump said on Sunday that he agreed with Treasury Secretary Scott Bessant's recent comments that the United States does not need to bring textile manufacturing back to the country.
"We are not going to make sneakers and T-shirts, we want to make military equipment," Trump said. He added that he hopes to make "big things" in the United States, mentioning chips, computers and artificial intelligence.