US postpones 50% tariffs on EU imports, trade negotiations continue

The US Government has announced a delay in imposing an overall tariff rate of 50% on all imports from the EU, including packaging materials, moving the start date from June 1 to July 9. The decision followed a phone call between US President Donald Trump and European Commission President Ursula von der Leyen. 

“We had a very nice call, and I agreed to move it,” says Trump. “She [Von Der Leyen] said we will rapidly get together and see if we can work something out.”

In a post on X, Von der Leyen agrees that she had a “good call” with Trump. “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.”

Oil prices rising

The EU is already subject to 25% import tariffs on steel and aluminum, alongside “reciprocal” and “universal” tariffs of close to 10% on almost all other goods. The EU retaliated with two-step countermeasures worth €26 billion (US$29 billion ), affecting steel, aluminum, plastic, and wood.

Oil prices rose on Monday, following the announced extension, with a likely impact on the virgin plastic industry. CNBS reported that the price hike is due to the easing concerns about US tariffs on the EU which could damage the global economy and increase demand.

The stocks of US oil companies Brent Crude Futures and West Texas Intermediate rose US$0.37, or 0.6%, to US$65.15 a barrel and by US$0.34, or 0.6%, to US $61.87 a barrel, respectively. 

IG market analyst Tony Sycamore argues that: “Trade and tariff headlines, along with ongoing fiscal concerns are going to be the main wild card for risk sentiment and crude oil this week.”