Overview

• The US and EU have extended the suspension of 50% tariffs on European imports until July 9, 2025, to allow further trade negotiations.
• Donald Trump initially threatened to impose the tariffs on June 1, citing dissatisfaction with the trade balance between the two economies.
• Key European industries, including wine, cosmetics, aeronautics, and luxury goods, remain highly vulnerable to the proposed tariffs.
• EU officials, led by Ursula von der Leyen, have expressed readiness for swift and decisive negotiations to reach a mutually beneficial agreement.
• The EU has warned of potential retaliatory measures and highlighted the economic risks for both sides if the tariffs are implemented.