US and EU to negotiate to avoid tariff escalation

President Donald Trump announced a postponement of the 50% tariff hike on EU products until July 9, following a call with European Commission President Ursula von der Leyen. The move is intended to create space for serious trade negotiations and avoid further escalation in the transatlantic trade war.

The EU accepted the extension and signaled readiness to move quickly in talks but warned it still needs time to reach a fair agreement.

Trump accused the EU of unfair trade practices and unequal tariff barriers hurting US industry. The 50% tariff threat followed earlier measures on steel, aluminum, automobiles, and pharmaceuticals.

In response, the EU had prepared a counter-package targeting US exports worth €26 billion, including emblematic products like bourbon whiskey and Harley-Davidson motorcycles. However, these measures were suspended to allow negotiations to proceed.