Trump announces expedited EU trade talks amid tariff delays, markets react positively
Shreeaa Rathi | TIMESOFINDIA.COM | May 28, 2025, 23:23 IST
( Image credit : AP, TOIGLOBAL )
In a recent announcement, Donald Trump expressed that the European Union is eager to engage in trade discussions following his postponement of tariffs on EU products. This positive development has buoyed market sentiments, signaling readiness from both parties. Ursula von der Leyen confirmed the EU's willingness to cooperate, while also preparing for potential trade counteractions.
U.S. President Donald Trump announced on Tuesday that the European Union has called for expedited trade meeting dates, signaling potential progress in trade negotiations after Trump agreed to delay a 50% tariff on EU goods until July 9, a move that initially rattled markets but has since sparked hopes for a breakthrough, with both sides expressing readiness to advance talks. Trump's announcement followed his accusations that the EU had been "slow walking" negotiations and his demand that the EU "open up the European Nations for Trade with the United States of America," mirroring his stance with China. The EU has also been preparing potential countermeasures targeting U.S. imports should a deal not be reached.
Trump communicated via a post on the Truth Social platform. He stated he was monitoring "positive" steps in trade talks with the European Union.
"I have just been informed that the E.U. has called to quickly establish meeting dates," Trump wrote.
Trump's comments had an immediate impact on financial markets. Europe's regional Stoxx 600 index slightly extended gains, trading up 0.55% on the previous session. U.S. markets opened broadly higher.
The U.S. president last week agreed to delay a 50% tariff imposition on the bloc until July 9. This decision provided a window for further negotiations.
The prospect of increased tariffs had previously unsettled markets. Trump had stated discussions with the EU were "going nowhere" last week.
However, sentiment shifted following indications of renewed engagement. European Commission President Ursula von der Leyen stated the EU was "ready to advance talks swiftly and decisively" in a post on X over the weekend.
European Trade Commissioner Maros Sefcovic reported having "good calls" with U.S. Commerce Secretary Howard Lutnick on Monday.
The EU has faced trade-related challenges under the Trump administration. The 27-member alliance was hit with a 20% tariff on April 2 as part of Trump's "reciprocal" tariff strategy. This was later reduced to 10% for 90 days for most trading partners.
Concurrent U.S. duties on autos, steel and aluminum are also impacting the bloc's exporters. EU officials have consistently expressed their desire to reach a trade agreement with the White House.
However, they have also emphasized that such an agreement must be mutually beneficial. The European Commission has been preparing for the possibility of failed negotiations.
The European Commission, the EU's executive arm, earlier this month launched a consultation on tariff countermeasures targeting U.S. imports worth 95 billion euros ($107.4 billion) if a deal is not reached. CNBC has contacted the European Commission for comment.
The U.S. recently finalized a trade deal with the U.K. On May 8, the U.S. unveiled the outline of a trade deal with the U.K., the first such agreement under the latest Trump administration, although businesses say they are awaiting further details.
The U.K. deal maintains a 10% baseline tariff on U.K. imports to the U.S., suggesting other countries will face a similar rate at a minimum. Trump has generally struck a favorable tone toward the U.K. due to its more balanced trade relationship in goods with the U.S.
Trump has voiced concerns about the trade relationship with the EU. He has accused the EU, however — with which it has a deficit in goods — of treating the U.S. unfairly .
EU-U.S. trade is roughly balanced when accounting for both goods and services, according to EU figures .
Trump also addressed his broader trade objectives.
"This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America." Trump wrote.
Trump communicated via a post on the Truth Social platform. He stated he was monitoring "positive" steps in trade talks with the European Union.
"I have just been informed that the E.U. has called to quickly establish meeting dates," Trump wrote.
Trump's comments had an immediate impact on financial markets. Europe's regional Stoxx 600 index slightly extended gains, trading up 0.55% on the previous session. U.S. markets opened broadly higher.
The U.S. president last week agreed to delay a 50% tariff imposition on the bloc until July 9. This decision provided a window for further negotiations.
The prospect of increased tariffs had previously unsettled markets. Trump had stated discussions with the EU were "going nowhere" last week.
However, sentiment shifted following indications of renewed engagement. European Commission President Ursula von der Leyen stated the EU was "ready to advance talks swiftly and decisively" in a post on X over the weekend.
European Trade Commissioner Maros Sefcovic reported having "good calls" with U.S. Commerce Secretary Howard Lutnick on Monday.
The EU has faced trade-related challenges under the Trump administration. The 27-member alliance was hit with a 20% tariff on April 2 as part of Trump's "reciprocal" tariff strategy. This was later reduced to 10% for 90 days for most trading partners.
Concurrent U.S. duties on autos, steel and aluminum are also impacting the bloc's exporters. EU officials have consistently expressed their desire to reach a trade agreement with the White House.
However, they have also emphasized that such an agreement must be mutually beneficial. The European Commission has been preparing for the possibility of failed negotiations.
The European Commission, the EU's executive arm, earlier this month launched a consultation on tariff countermeasures targeting U.S. imports worth 95 billion euros ($107.4 billion) if a deal is not reached. CNBC has contacted the European Commission for comment.
The U.S. recently finalized a trade deal with the U.K. On May 8, the U.S. unveiled the outline of a trade deal with the U.K., the first such agreement under the latest Trump administration, although businesses say they are awaiting further details.
The U.K. deal maintains a 10% baseline tariff on U.K. imports to the U.S., suggesting other countries will face a similar rate at a minimum. Trump has generally struck a favorable tone toward the U.K. due to its more balanced trade relationship in goods with the U.S.
Trump has voiced concerns about the trade relationship with the EU. He has accused the EU, however — with which it has a deficit in goods — of treating the U.S. unfairly .
EU-U.S. trade is roughly balanced when accounting for both goods and services, according to EU figures .
Trump also addressed his broader trade objectives.
"This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America." Trump wrote.