The Trump administration has seemingly delayed the detonation of a significant economic charge, postponing the proposed 50 per cent tariffs on European Union exports until July 9, 2025. However, tariffs specifically for aluminum and steel are still slated to begin June 4th. This eleventh-hour reprieve, reportedly stemming from a productive dialogue between the former US president and EU president Ursula Von Der Leyen, suggests more than mere diplomatic courtesy. It hints at a deliberate US strategy aimed at compelling Brussels to negotiate a more advantageous trade agreement, all while avoiding immediate retaliation from a bloc already struggling with economic challenges and geopolitical pressures.
This recent development echoes Trump’s well-established “policy by provocation.” Earlier in May, he resurrected his “America First” trade doctrine, proclaiming on social media his recommendation of a “straight 50% tariff on the European Union, starting on June 1, 2025,” explicitly stating that tariffs would not apply to products built or manufactured in the United States.
This unambiguous language signals a significant escalation, potentially subjecting a wide range of European goods – from aluminum and steel to automobiles and machinery – to a 50 per cent ad valorem duty.
The stipulation exempting US-manufactured goods is particularly noteworthy. By tying tariff liabilities to the rules of origin, the US administration is presenting a stark choice: relocate manufacturing operations to the United States or face substantial financial penalties. For major EU industrial players, ranging from German automotive manufacturers to French aerospace companies, this presents a high-stakes dilemma balancing political considerations and commercial imperatives. The delay offers a brief window, but the underlying pressure remains. The future of transatlantic trade remains uncertain, hanging on the outcome of negotiations and the ever-present threat of renewed tariff impositions. 
Source: GlassBalkan
