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Trump Backs Down on Tariff Threat, Agrees to Extend EU Trade Talks

THE WORLD STANDARD May 26, 2025
Trump Backs Down on Tariff Threat, Agrees to Extend EU Trade Talks

U.S. President Donald Trump has agreed to extend trade negotiations with the European Union and has temporarily withdrawn his threat to impose new tariffs on European goods. The decision was announced on May 26, 2025, following several days of talks between American and EU officials.

Trump had previously warned that tariffs on key European exports, including cars and agricultural products, would be introduced if the EU did not make concessions in trade talks. However, after discussions in Washington and Brussels, both sides agreed to continue negotiations.

In a statement, the White House said the extension would allow for “further progress on key issues” and that tariffs would remain suspended during the next phase of talks.

EU Welcomes De-escalation

European Commission President Ursula von der Leyen welcomed the decision and said that diplomacy had prevailed over confrontation. She stated that both sides had a responsibility to resolve trade differences through dialogue.

The EU has been pushing for a broader trade agreement that addresses tariffs, regulatory cooperation, and digital trade rules.

Business Response

Business groups in both the U.S. and Europe expressed relief over the pause in tariff escalation. Industry leaders had warned that new tariffs could disrupt supply chains and raise consumer prices.

Negotiations to Continue

No specific timeline was provided for when the next round of trade talks will conclude. U.S. Trade Representative officials said that significant differences remain but that dialogue will continue in the coming weeks.

The tariff threat is suspended for now, but officials noted that if no agreement is reached, the U.S. president may reconsider the use of trade penalties.

Both sides have stated they remain committed to reaching a mutually beneficial agreement.

Source; Al Jazeera

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