US president continues to fuel global economic uncertainty with erratic trade policy.<\/p>\n
United States President Donald Trump has backed away from launching a trade war with the European Union, two days after threatening to impose punishing tariffs.<\/p>\n
Trump said on Sunday that he has agreed to extend trade negotiations with the EU to July 9 following a call with European Commission President Ursula von der Leyen. As part of that agreement, the US will also hold back from imposing a 50 percent<\/a> tariff on imports from the bloc, which Trump announced on Friday would be imposed on June 1.<\/p>\n The announcement is the latest U-turn on US trade policy in a long series in recent months, and will only add to the uncertainty that Trump\u2019s erratic and unpredictable policy<\/a> is casting over the global economy.<\/p>\n Trump said, \u201c[von der Leyen] said she wants to get down to serious negotiation. We had a very nice call.\u201d<\/p>\n \u201cShe said we will rapidly get together and see if we can work something out,\u201d he told reporters.<\/p>\n The European Commission chief noted that she had shared a \u201cgood call\u201d with Trump and that the EU was ready to move swiftly.<\/p>\n Backtracked<\/p>\n Trump set a 90-day window for trade negotiations with the EU in April, making them due to end on July 9.<\/p>\n He had backtracked on Friday, saying he was not interested in reaching an agreement at all and escalated the transatlantic trade dispute.<\/p>\n \u201cI\u2019m not looking for a deal,\u201d the president said. \u201cWe\u2019ve set the deal \u2013 it\u2019s at 50 percent.\u201d<\/p>\n However, by Sunday, he welcomed von der Leyen\u2019s assertion that the bloc is willing to negotiate but needs more time.<\/p>\n \u201cEurope is ready to advance talks swiftly and decisively,\u201d she recapped on X. \u201cTo reach a good deal, we would need the time until July 9.\u201d<\/p>\n