Is Trump Toying With EU Tariffs or Merely Offering Carmakers Illusions of Hope? | Carscoops

      The US President has delayed the planned tariff increase to July 9 following a conversation with European Commission President Ursula von der Leyen.

      President Trump announced that the 50 percent tariffs on EU goods would be postponed until July 9.

      Previously, he had warned about implementing the new high tariff starting June 1.

      The EU was preparing for a 20 percent tariff when the President introduced the stricter rate.

      It might be interesting to attach cardio monitors to every European automobile manufacturer’s chief and let them run for a few months, as Trump’s surprise tariff hikes, including the recent announcement and subsequent delay, likely send their heart rates into a frenzy—similar to an Alpine mountain range.

      If you missed the news from Friday, Trump indicated his intention to introduce a massive 50 percent tariff on goods, including vehicles, imported from Europe starting June 1. Automakers, who were enjoying a temporary 10 percent rate during Trump's 90-day tariff hold, had anticipated a 20 percent tariff following the end of that period on July 9. However, Trump expressed frustration with the sluggish pace of trade negotiations and decided to introduce a hefty tax into the conversations.

      Related: Trump Just Dropped A Bomb On European Car Imports

      Then on Sunday, Trump, whose policies appear to oscillate like a restless child searching for something to watch on TV, announced that he would postpone the 50 percent tariff on EU goods until July 9. This change of decision followed his weekend discussion with Ursula von der Leyen.

      "We had a very nice call, and I agreed to move it," Trump told reporters, according to Bloomberg, but he did not disclose further details about their conversation.

      Volvo’s CEO cautioned last week that the company might have to halt exports of its Belgium-manufactured EX30 electric SUV to the US unless an agreement over tariffs is reached between the US and the EU. The UK and the US have already established a deal resulting in British automakers, like Land Rover, facing only a 10 percent tariff, which has caused frustration among Detroit manufacturers as their vehicles built in Canada and Mexico still encounter tariffs, despite being assembled in regions covered by the United States-Mexico-Canada Agreement (formerly known as NAFTA).

      Lead image: VW