Overview

• The U.S. and EU have extended the suspension of 50% tariffs on European imports to July 9, allowing more time for trade negotiations.
• Donald Trump had threatened to impose the tariffs starting June 1 but agreed to the extension after a call with European Commission President Ursula von der Leyen.
• The EU has warned of potential retaliatory tariffs on $95 billion worth of U.S. imports, including cars and aircraft, if negotiations fail.
• Key European sectors like luxury goods, wine, cosmetics, and aeronautics face significant economic risks if the proposed tariffs are implemented.
• The EU is working to strengthen its trade position, with discussions around measures such as a 'Buy European Act' to protect its industries.