US and EU Agree To 'Fast Track' Negotiations After Trump Pauses Tariffs
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The United States and the European Union have agreed to "fast track" negotiations after President Donald Trump decided to pause 50 percent tariffs on imports from the EU next month.
Trump spoke with EU President Ursula von der Leyen this weekend and opted for a July 9 deadline to allow for negotiations.
"They agreed both to fast track the trade negotiations and to stay in close contact," a European Commission spokesperson told Reuters.
Why It Matters
Trump has introduced several tariffs since returning to the White House, although many have been rolled back since they were announced.
Trump argues that the tariffs will help government revenue and restore America's manufacturing industry, while critics say economic growth could be hit and consumers will face increased inflation.
U.S. President Donald Trump speaks at a ceremony before posthumously awarding Medals of Sacrifice to three fallen Palm Beach County Sheriff's Office deputies in the Oval Office of the White House on May 19, 2025...
U.S. President Donald Trump speaks at a ceremony before posthumously awarding Medals of Sacrifice to three fallen Palm Beach County Sheriff's Office deputies in the Oval Office of the White House on May 19, 2025 in Washington, DC. MoreWhat To Know
Trump said he would delay plans for a 50 percent tariff on trade with the EU from June 1 to July 9 in a post on Truth Social this weekend.
According to Trump, the pause was requested by von der Leyen, who said she had a "good call" with Trump and it would take until July 9 "to reach a good deal," in a post on X, formerly Twitter.
Trump announced on May 23 that he would be "recommending a straight 50% Tariff on the European Union, starting on June 1, 2025" as "our discussions with them are going nowhere!"
The 20 percent tariff on trade with the EU was included as part of his "liberation day" tariffs announced on April 2. Those tariffs also include a 25 percent levy on South Korea and an extra 34 percent on China.
What People Are Saying
President Donald Trump, on Truth Social: "I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% Tariff with respect to Trade and the European Union. I agreed to the extension — July 9, 2025 — It was my privilege to do so. The Commission President said that talks will begin rapidly. Thank you for your attention to this matter!"
European Commission President Ursula von der Leyen, on X: "Good call with @POTUS. The EU and US share the world's most consequential and close trade relationship.
"Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9."
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "This is not so much a fast-track as it is a response to Trump erratically changing deadlines. Typically, world leaders like to take a little time to make decisions that affect half a billion people, and attempt to make major moves without a total disruption in their stock markets and economies. Clearly this is not the strategic direction Trump has decided to take."
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "It feels like the U.S. is chasing a few quick wins. A lot has been promised, but not much has stuck. What we're seeing now are these so-called 'binding commitments' meaning countries aren't necessarily reducing tariffs today, but they're agreeing not to raise them tomorrow. It's a stability play, not a breakthrough."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Traditionally, trade negotiations between countries can go on for years, as countries logically have repeated discussions on policies that will best benefit them and their economic interests. With that in mind, it's difficult to think a new massive trade deal could be finalized before the delayed tariff date of July 9. At the same point, the quicker pace of negotiations could produce a short-term resolution for tariffs that at least will keep the proposed higher percentages from coming to fruition."
What Happens Next
Time will tell whether the U.S. and EU can agree to a new trade deal before July 9 in order to avoid the new tariffs.
"The deal with the U.K. was presented by both sides as mutually beneficial, but it left a very sour taste in the mouths of our European trading partners. Political pundits in the U.K. were quick to point out the U.K. felt negotiations were not held in good faith and would serve as a warning to other economies," Powers said.
"The U.S. is the proverbial 800-pound economic gorilla in the global room. A silverback can show its dominance by sitting stoically or it can pound its chest and throw feces. Trump's chosen strategy is clearly the latter."
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