Introduction to Trade Tensions
Donald Trump has announced that he will delay the introduction of 50% tariffs for goods entering the United States from the European Union until July. This decision comes as the two sides attempt to negotiate a trade agreement.
Background on the Tariffs
The President of the European Commission, Ursula von der Leyen, expressed that they need to be needed by July 9 to "achieve good business". The US President had previously threatened to introduce the 50% tariffs from June 1st, with European leaders stating that they were ready to respond with their own measures.
Delay in Tariff Introduction
However, Mr. Trump has now said that the date has been pushed back to July 9th to allow more time to negotiate with the 27-member block. On Sunday, before boarding Air Force One for Washington DC, Mr. Trump told reporters that he spoke to von der Leyen and wants to "get down to serious negotiations" and she agreed to "get together quickly and see if we can work out something".
Fear of a Trade War
The US President had previously expressed frustration with the trade talks, stating that they were "going nowhere" and the block was "very difficult to deal with". Mr. Trump told the media in Morristown, New Jersey that von der Leyen "called me … and she asked for an extension on June 1st. And she said she wanted to go to serious negotiations".
Previous Trade Actions
On his "so-called ‘day of liberation’ last month", Mr. Trump unleashed tariffs on many of the American trading partners. Since then, he has been involved in a spiral of tit-for-tat collective bargaining with China and made a contract with Great Britain.
EU Response
A large part of the US President’s rhetoric in trade has been directed at Brussels, with claims that the EU was created to tear down the United States. The EU commissioner reacted to the 50% tariff threat, stating that "The EU-US trade is unsurpassed and must be guided by mutual respect and not by threats. We are ready to defend our interests."
