EU tariff break extended

Donald Trump and European Commission President Ursula von der Leyen both announced on Sunday an extension of the pause in the 50% tariffs imposed by the United States on the European Union, until July 9.

Ursula von der Leyen called the US president about the tariffs, which were initially suspended until June 1 and to which the EU has threatened to respond with taxes on certain US imports.

"She just called me and asked for an extension to the June 1st date, and she said she wants to start serious negotiations," Donald Trump said before boarding Air Force One, returning from his weekend in New Jersey.

"We had a very good conversation and I agreed to move the date to July 9th. (…) I agreed, and she told me that we would quickly meet and see if we could work something out," Donald Trump continued.

Ursula von der Leyen, for her part, had reported a "good call" with Donald Trump shortly before Sunday. "Europe is ready to move negotiations forward quickly and decisively. To reach a good agreement, we will need time until July 9," she said on the social network X. "The EU and the United States have the largest and closest trading relationship in the world," she recalled.

Donald Trump stated on Friday that he was not "seeking a trade agreement" with the European Union and threatened to impose 50% tariffs on imports from the 27 member states as of June 1. The European Commission, which negotiates trade agreements on behalf of the EU, immediately responded by demanding compliance from Washington.

"The EU is fully engaged and determined to secure an agreement that works for both sides," Trade Commissioner Maros Sefcovic said on X, after talks with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.

Trade between the EU and the United States "must be guided by mutual respect, not by threats. We are ready to defend our interests," he added. German Finance Minister Lars Klingbeil urged the United States on Sunday to conduct "serious negotiations."

"The US tariffs endanger the American economy as much as the German and European economies," Lars Klingbeil said in an interview with the Sunday edition of the daily newspaper "Bild."

The EU had threatened in early May to impose tariffs worth 95 billion euros (88 billion francs) of US imports, including cars and planes, if trade negotiations with Trump failed.

The Commission also announced that it would refer the trade measures it is suffering from at the hands of the United States to the World Trade Organization (WTO).

In recent months, the European Union has been hit three times by customs duties from the US administration: 25% on steel and aluminum, announced in mid-March, 25% on automobiles, and then 20% on all other European products in April.

This latest surcharge has been suspended until July to allow for negotiations. However, 10% tariffs remain in place on most goods exported to the United States by the 27 member states. Donald Trump has regularly attacked Europe since returning to the White House, deeming it "worse than China" in trade relations.

The United States estimates its deficit with the EU in goods at $235 billion (CHF 193 billion) in 2024, but the European Commission points out that the American surplus in services reduces the trade deficit to €50 billion (around CHF 47 billion).