The rollercoaster ride of President Donald Trump’s tariff policies continues to create significant uncertainty for businesses involved in transatlantic trade, despite his latest decision to delay a threatened 50% tariff on European Union goods until July 9. While the postponement offers a temporary reprieve, the unpredictable nature of his announcements has already led many companies to withdraw financial forecasts.
The sudden shift, initiated by a direct call from European Commission President Ursula von der Leyen, averted an immediate tariff hike scheduled for June 1. However, the history of Trump’s fluctuating tariff rates – from an initial 20%, to 10%, then a rapid jump to 50%, and now a delay – highlights the precarious environment businesses operate within. Car manufacturers, in particular, remain on edge, despite reassurance efforts from EU Trade Commissioner Maroš Šefčovič.
Beyond the immediate tariff concerns, the broader trade dispute includes existing US tariffs on steel, aluminum, and cars, as well as the EU’s own arsenal of suspended and potential retaliatory measures. With the EU’s retaliatory tariffs on €21 billion of US goods set to activate on July 14 without a deal, and discussions ongoing for even wider targets, the business community remains on high alert for further disruptions in the transatlantic economic landscape.