President Trump announced Sunday that the US will postpone the implementation of a 50% tariff on European Union goods until July 9, 2025, providing a window for renewed negotiations with the bloc. The tariffs, originally set to take effect on June 1, had sparked concerns over escalating trade tensions.

The decision followed a phone call with European Commission President Ursula von der Leyen, who Trump said expressed a strong desire to engage in “serious negotiations.” Speaking to reporters in Morristown, New Jersey, Trump emphasized that he had been urging the EU to return to the table. Trump said von der Leyen committed to acting quickly to resolve the dispute.

Trump had previously threatened the tariffs in a social media post on Friday, citing stalled talks and accusing the EU of being “very difficult to deal with.” However, Sunday’s conversation appeared to ease those concerns.

Trump posted the below to Truth Social on Sunday evening.

Von der Leyen also publicly reacted to the call, underscoring the importance of the transatlantic economic partnership. “Europe is ready to advance talks swiftly and decisively,” she said. “To reach a good deal, we would need the time until July 9.”

The delay gives both sides breathing room to avoid a costly escalation that could disrupt one of the world’s most significant trade relationships.

German Finance Minister Lars Klingbeil urged restraint in the escalating trade dispute between the European Union and the US in an interview with Bild am Sonntag.

“We don’t need any more provocations now, but serious negotiations,” the German Sunday tabloid cited Klingbeil as saying. The minister said he had discussed “precisely this” with US Treasury Secretary Scott Bessent.

“The US tariffs are endangering the American economy at least as much as the German and European economies,” Klingbeil said. “This trade conflict harms everyone and must be ended quickly.”

At the same time, Europe is “united and determined to defend our interests,” the minister said.

Klingbeil’s comments echo the response from EU officials to US President Donald Trump’s threat on Friday to impose a 50% tariff on EU imports from June 1, which sent stocks on both sides of the Atlantic tumbling.

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On Friday, President Trump threatened that 50% tariffs on the European Union may be coming in June, more than doubling the “reciprocal” rate of 20% that Trump paused.

Here’s what industries and products could be hit hardest, according to the Financial Times.

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Reuters reports:

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First quarter earnings season is beginning to wrap up, with Nvidia’s report on Wednesday serving as the last major earnings event on the calendar for a while.

Throughout numerous earnings calls with analysts, one theme remained dominant: tariffs.

Some notable examples include Walmart saying it may raise prices, which drew heat from President Trump.

“The immediate challenge is obviously navigating the impact of tariffs here in the US,” Walmart CEO Doug McMillon said on the company’s earnings call on May 15. “We will do our best to keep our prices as low as possible. But given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins.”

Another example came from the maker of Hoka sneakers, Deckers (DECK).

“Based on the tariffs as of today’s date, which are still subject to change, we expect to face an increase of up to $150 million to our cost of goods sold in fiscal year 2026 and with the related yet-to-be-determined impact to demand,” Deckers CFO Steven Fasching said on May 22. “Our teams are closely monitoring changes to tariff policies and continue to evaluate levers to mitigate the impact on our business, including, but not limited to, flexing the pricing power of our brands.”

With Trump’s announcement of new possible 50% tariffs on the European Union and direct shots at US companies like Apple and Walmart, it’s all but certain that this buzzword will remain in play when earnings pick back up in July.

Apple CEO Tim Cook has spent years trying to get the iPhone maker to evade President Trump’s tariffs. But today’s warning from Trump suggests the limits to those efforts.

Yahoo Finance’s Allie Canal notes that Trump’s tariff threats on the company come at a vulnerable time for its business model.

In its latest earnings call, Apple warned of a $900 million tariff-related headwind this quarter. And Wall Street analysts have questioned whether it’s even feasible for Apple to shift manufacturing to the US and escape tariffs.

Our Senior Columnist Rick Newman notes that while Trump’s fixation with Apple isn’t new, his approach to tariffs has some important differences this time around.

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Bloomberg reports:

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President Trump proposed on Friday raising tariffs on goods from the European Union to 50%, starting June 1.

“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump posted on Truth Social. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.”

Trump previously imposed a 20% so-called reciprocal tariff on the EU on April 2 but then rolled it back to 10% temporarily while trade talks ensued.

The EU sent US officials a trade proposal on Thursday, which called for gradual tariffs for some non-sensitive items as well as some mutual investments and strategic procurement. At the same time, the bloc has put together a package of retaliatory tariffs affecting roughly $108 billion in goods.

But the talks fell short of US expectations, the FT reported Friday. Officials will meet next month to determine if the two parties can avoid another escalation.

Trump’s shot at the EU came shortly after he threatened to raise tariffs on Apple (AAPL) if the company does not manufacture iPhones in the US.