US and EU Agree To 'Fast Track' Negotiations After Trump Pauses Tariffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
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."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Upturn
6 minutes ago
- Business Upturn
I regret some of my posts about President Trump: Elon Musk expresses regret
By Aditya Bhagchandani Published on June 11, 2025, 12:44 IST In what appears to be a shift in tone, Elon Musk on Tuesday posted that he regrets some of his recent remarks about President Donald Trump, saying, 'They went too far.' I regret some of my posts about President @realDonaldTrump last week. They went too far. — Elon Musk (@elonmusk) June 11, 2025 This comes just days after Trump addressed their ongoing feud, stating he wished Musk 'very well' and suggesting the tech mogul might be seeking a conversation. In a gesture that caught attention, Musk had responded with a heart emoji on X (formerly Twitter), sparking speculation about a possible reconciliation. Tensions between the two escalated last week after Musk called Trump's proposed 'One Big Beautiful Bill Act' a 'pork-filled abomination' and accused the President of suppressing Jeffrey Epstein-related files. The latter post, which Musk later deleted, reportedly infuriated Trump, who retaliated with harsh criticism and even threatened to sever government contracts with Musk-led firms. The feud intensified when Musk countered by threatening to halt NASA-linked SpaceX missions and claimed Trump would have lost the 2024 election without his support. He also floated the possibility of impeachment. However, Musk's latest message—posted at 12:34 PM on June 11—marks a notable departure from his confrontational stance, possibly signaling the beginning of a de-escalation. While no official conversation has been confirmed, both camps appear to be softening their positions, leaving the door open for future dialogue. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
6 minutes ago
- Business Upturn
Minda Corporation forms joint venture with Toyodenso to manufacture advanced automotive switches in India
Minda Corporation has entered into a strategic joint venture with Japan-based Toyodenso to provide end-to-end solutions for the Indian automotive switch market. The partnership will cover design, development, manufacturing, and marketing of advanced automotive switches for two-wheelers, passenger vehicles, and other automotive segments. Minda Corporation will hold a 60% majority stake in the joint venture, while Toyodenso will hold the remaining 40%. The venture has already secured orders from Indian customers and plans to set up a greenfield manufacturing facility in Noida, Uttar Pradesh. Operations at the plant are expected to begin in the second half of FY 2026–27. This collaboration aligns with Minda Corporation's strategy to localize new technologies and expand its synergistic product portfolio. Toyodenso will contribute cutting-edge engineering and technology, while Minda Corporation will leverage its strength in localized manufacturing and supply chain management. The partnership is poised to meet the growing demand for technologically advanced switches in the Indian automotive sector. Ashok Minda, Chairman & Group CEO, Minda Corporation Limited, commented, 'We are very excited and privileged to partner with Toyodenso, a Global Japanese company with rich legacy of technological innovation. This partnership marks a pivotal milestone in our journey to drive smart mobility solutions while fostering indigenous manufacturing by integrating globally recognized technologies into India's automotive ecosystem.' Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
10 minutes ago
Trump's actions in Los Angeles spur debate over deportation funds in his 'big, beautiful' bill
WASHINGTON -- President Donald Trump's 'big, beautiful bill' in Congress includes more than tax breaks and spending cuts — it also seeks to pour billions of dollars into the administration's mass deportation agenda. Republican leaders capitalized Tuesday on the demonstrations in Los Angeles, where people are protesting Trump's immigration raids at Home Depot and other places, to make the case for swift passage of their sprawling 1,000-plus-page bill over staunch Democratic opposition. House Speaker Mike Johnson said the One Big Beautiful Bill Act delivers 'much-needed reinforcements,' including 10,000 new Immigration and Customs Enforcement agents, $45 billion to expand migrant detention facilities and billions more to carry out at least 1 million deportations a year. 'All you have to do is look at what's happening in Los Angeles to realize that our law enforcement needs all the support that we can possibly give them,' said Senate Majority Leader John Thune, R-S.D. The focus on some $350 billion in national security funding comes as action on the massive package is lumbering along in Congress at a critical moment. Trump wants the bill on his desk by the Fourth of July. But Senate Republicans trying to heave it to passage without Democrats are also running up against objections from within their GOP ranks over the details. At the same time, Democrats are warning that Trump's executive reach into California — sending in the National Guard over the governor's objections and calling up the Marines — is inflaming tensions in what had been isolated protests in pockets of LA. They warned the president's heavy-handed approach has the potential to spread, if unchecked, to other communities nationwide. 'We are at a dangerous inflection point in our country,' said Rep. Jimmy Gomez, who represents the Los Angeles area. 'Trump created this political distraction to divide us and keep our focus away from his policies that are wreaking havoc on our economy and hurting working families," he said. "It's a deliberate attempt by Trump to incite unrest, test the limits of executive power and distract from the lawlessness of his administration.' At its core, the bill extends some $4.5 trillion in existing tax breaks that would otherwise expire at the end of the year without action in Congress, cutting some $1.4 trillion in spending over the decade to help offset costs. The Congressional Budget Office found the bill's changes to Medicaid and other programs would leave an estimated 10.9 million more people without health insurance and at least 3 million each month without food stamps from the Supplemental Nutrition Assistance Program. At the same time, CBO said the package will add some $2.4 trillion to deficits over the decade. One emerging area of concern for Republican leaders has been the bill's status before the Senate parliamentarian's office, which assesses whether the package complies with the strict rules used for legislation under the so-called budget reconciliation process. Late Monday, Republicans acknowledged potential 'red flags' coming from the parliamentarian's office that will require changes in the House bill before it can be sent to the Senate. Leaders are using the reconciliation process because it allows for simple majority passage in both chambers, were GOP majorities are razor-thin. House Majority Leader Steve Scalise said Republicans are preparing to address the concerns with a vote in the House, possibly as soon as this week, to change the package. Senate Democratic Leader Chuck Schumer seized on the House's upcoming do-over vote as a chance for Republicans who are dissatisfied with the package to reassert their leverage and 'force the bill back to the drawing board.' 'They say they don't like parts of the bill — now is their opportunity to change it,' Schumer said. On Tuesday, Vice President JD Vance was dispatched to speak with one GOP holdout, Sen. Ron Johnson of Wisconsin, who has pushed for deeper spending reductions in the bill to prevent skyrocketing deficits from adding to the nation's $36 trillion debt load. Other Republican senators have raised concerns about the health care cuts. But Republicans are in agreement on border security, deportation and military funding, over the objections of Democrats who fought vigorously during the committee process to strip those provisions from the bill. The package includes about $150 billion for border security and deportation operations, including funding for hiring 10,000 new ICE officers — with what Johnson said are $10,000 hiring bonuses — as well as 3,000 new Border Patrol agents and other field operations and support staff. There's also funding for a daily detention capacity for 100,000 migrants and for flights for 1 million deportations annually. The package includes $46 billion for construction of Trump's long promised wall between the U.S.-Mexico border. Additionally, the bill includes $150 billion for the Pentagon, with $5 billion for the military deployment in support of border security, along with nearly $25 billion for Trump's 'Golden Dome' defense system over the U.S. Separately, the bill adds another $21 billion for the Coast Guard. Democrats have argued against the deportations, and warned that Trump appears to be stirring up protests so he can clamp down on migrant communities. Rep. Nanette Barragan — whose district represents the suburban city of Paramount, where the weekend Home Depot raid touched off protests — implored Americans: 'Listen to the words of this administration: They're using words like insurrection. They're using words like invasion.' She warned the administration is laying the groundwork for even steeper actions. 'That's a concern,' she said. 'That is dangerous. It's wrong.'
