EU stock indices and commodity prices fall amid Trump's threats to impose 50% tariffs on European imports

On Friday, President Trump tweeted that he “recommends a 50% direct tariff on goods from the European Union, effective June 1, 2025,” accusing the EU of unfair trade policies, including VAT, non-tariff barriers, currency manipulation, penalties for American corporations, and “unfounded lawsuits.” He said this leads to an annual US trade deficit with the EU of more than $250 billion.

After that, European stock indices fell by 1-1.6%, American ones by 0.6-1%, wheat futures in Paris by 1.3%, and corn futures by 2.7% in anticipation of a possible export ban.

European Commission President Ursula von der Leyen spoke with US President Trump on Saturday, saying the conversation was "good".

"The EU and the US have the most significant and closest trading relationship in the world. Europe is ready to move the negotiations forward quickly and decisively. We need time until July 9 to reach a good deal," she said.

On Sunday at 6:15 p.m., Trump tweeted that after speaking with Ursula von der Leyen, he had postponed the introduction of tariffs until July 9.

According to the European Commission, the US is the EU's largest trading partner, providing over 20% of all EU exports, which amounted to €530 billion in 2024.

Economic modelling conducted in April showed that 25% tariffs would reduce EU GDP by 0.2%, but this figure would increase to 0.5% if 50% tariffs were introduced.

Germany, Ireland, Italy and France are the leading European exporters. They sell more than €200 billion worth of machinery and vehicles to the US, €160 billion worth of chemicals, and €25 billion worth of food and beverages to the US.