President Donald Trump’s latest move to delay a previously threatened 50% tariff on European Union goods until July 9, after a brief and sudden escalation, underscores the high level of volatility that continues to plague transatlantic trade relations. This flip-flopping on border taxes has left businesses grappling with profound uncertainty, with many already withdrawing their financial forecasts.
The reprieve came following a direct appeal from European Commission President Ursula von der Leyen, who engaged in a “very nice call” with Trump to persuade him to push back the June 1 deadline. While European leaders expressed hope for a swift agreement, the unpredictable nature of Trump’s trade policies remains a significant concern. The President’s initial “liberation day” tariffs of 20% on EU goods, quickly reduced to 10%, then abruptly raised to 50% before the latest delay, illustrate a pattern of dramatic shifts.
Despite the temporary calm, foundational trade issues remain. Trump’s 25% tariffs on steel, aluminum, and cars are still in effect, and the EU’s suspended retaliatory tariffs on €21 billion of US goods are set to kick in on July 14 if no agreement is reached. The ongoing consultation for an additional €95 billion round of EU retaliatory tariffs, including potentially targeting US tech firms or banks, highlights the extensive arsenal both sides possess in this protracted economic standoff.
From 50% to Delay: Trump’s Tariff Volatility Keeps Businesses Guessing
