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**Trump Delays EU Tariffs, Sparks Hope for Trade Deal**

WASHINGTON – In a surprise move, President Donald Trump has postponed the imposition of steep tariffs on the European Union until July 9th, offering a glimmer of hope for a negotiated trade agreement. This decision follows a phone call with European Commission President Ursula von der Leyen, who requested more time to reach a deal.

Originally threatening 50% tariffs on EU goods starting June 1st, Trump has now seemingly softened his stance, stating it was his “privilege” to grant the extension. French President Emmanuel Macron expressed optimism that the US and EU could achieve a deal with the “lowest possible” tariffs.

The delay comes amidst Trump’s broader global trade war, which has unnerved markets and raised fears of an economic downturn. While the US has secured a trade deal with the UK, progress with the EU has been slow, primarily due to disagreements over tariff levels. Trump has resisted EU proposals for mutually zeroed tariffs, insisting on a baseline 10% tax on most imports.

The EU has proposed removing tariffs on industrial goods, boosting access for US agricultural products, and enhancing cooperation in areas like energy and AI data centers. In return, they seek flexibility in lowering the 10% baseline tariff.

EU trade chief Maros Sefcovic emphasized the need for “mutual respect, not threats” in trade negotiations. The EU has prepared retaliatory tariffs on US goods worth billions of euros, set to take effect on July 14th if no agreement is reached.

Trump has long accused the EU of “ripping off” the US, aiming to reduce the EU’s substantial trade surplus with the US. The US has raised concerns over European VAT, regulations on IT, and food exports, claiming they act as trade barriers. Sefcovic indicated a willingness to increase US gas, weapons, and agricultural product purchases to address the trade deficit.

Both sides are scheduled to meet in Paris next month to discuss de-escalation. A full-scale trade war could significantly impact both economies, potentially costing each 0.3-0.6% of GDP, according to an IMF study.

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