U.S. President Donald Trump has extended the tariff negotiation deadline with the European Union to July 9, following what he called a "good call" with European Commission President Ursula von der Leyen. The decision comes amid growing trade tensions and the threat of escalating tariffs on EU imports.

Trump had initially imposed a 20% tariff on most EU goods, later reducing it to 10% to allow room for negotiations until July 8. Frustrated with the negotiation pace, he threatened to raise tariffs to 50% on all EU imports by June 1 unless progress was made. However, following a productive call with von der Leyen, Trump announced the extension via Truth Social, calling it his "privilege."

Von der Leyen confirmed the EU is ready to move "swiftly" to secure a fair and balanced trade agreement. EU Trade Commissioner Maroš Šefčovič also reiterated the bloc’s commitment to reaching a deal, emphasizing that EU-U.S. trade should be built on mutual respect rather than threats.

Despite ongoing negotiations, 25% tariffs on EU steel and aluminum remain in place, and Trump has signaled concerns over EU trade advantages, particularly in automotive and agricultural sectors. The EU, while pausing retaliatory tariffs on $20 billion worth of U.S. goods, is considering further measures on imports valued at €95 billion, pending ongoing consultations.

Trade experts warn that an escalation could trigger a global economic shock, with key EU nations like Germany and France urging a diplomatic resolution to avoid mutual economic harm. The EU exported over $600 billion in goods to the U.S. last year while importing $370 billion, highlighting the significant trade imbalance at the heart of the dispute.