During a weekend call, EU President Ursula von der Leyen and U.S. President Donald Trump injected fresh momentum into trade discussions, the EU announced on Monday. Trump had previously threatened to impose 50% tariffs on EU imports, but after a positive call with von der Leyen, he extended the deadline to July 9 to allow for negotiations between the U.S. and the 27-nation bloc. The call, initiated by von der Leyen, led to a surge in the euro against the dollar and boosted European shares while lowering gold prices. Discussions between U.S. and EU trade representatives were scheduled for Monday afternoon. The EU spokesperson highlighted that the call had provided new impetus for negotiations.
EU businesses anxious
The negotiations had hit a snag with Washington pushing for unilateral concessions from Brussels, while the EU aimed for a mutually beneficial agreement. The EU already faced 25% U.S. tariffs on certain goods and reciprocal tariffs of 10% on most other products, set to increase to 20% in July if no deal was reached. The potential 50% tariff threat could impact a wide range of EU imports, affecting consumer prices on various products. The situation remains uncertain, with looming implications for several industries.
