USA: EU Tariff of 50% proposed & delayed

Arne Mielken
May 26
4 min read

Updated: May 27

EU gets a tariff reprieve—until July 9. Is your import strategy ready?

Importers, brace yourselves—again. U.S. President Donald Trump has extended his threat to impose a massive 50% tariff on EU goods until July 9, granting EU leaders a last-minute lifeline. But make no mistake—this is only a delay, not a de-escalation.

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Key Questions Covered in This Blog

Why did Trump call for 50% EU tariff?
Why did Trump delay the 50% EU tariff?
What’s the current status of U.S.–EU trade negotiations?
Which sectors and imports are most at risk?
What does this mean for customs compliance and supply chain planning?
How should EU and U.S. businesses prepare for July 9?

Abbreviations Used in This Blog

EU – European Union
USTR – U.S. Trade Representative
CBP – U.S. Customs and Border Protection
HS Code – Harmonized System Code
FTA – Free Trade Agreement

“This is not just another tariff threat. It’s a trade war warning shot—and the timer is ticking.”Arne Mielken, Managing Director, Customs Manager

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Why did Trump call for 50% EU tariff?

Why did Trump delay the 50% EU tariff?

This latest twist in the U.S.–EU trade saga came just days before the original June 1 deadline. President Trump, who previously called EU leaders “difficult,” had announced a 50% tariff on all EU goods, citing frustration with what he deemed unfair trade imbalances.

However, after what Trump described as a “very nice call” with European Commission President Ursula von der Leyen, he agreed to postpone the escalation to July 9. Von der Leyen reportedly asked for the extension, promising that negotiations would begin "rapidly and decisively."

This isn’t a walk-back—it’s a strategic pause. Trump is known for his brinkmanship. The delay is intended to “light a fire” under EU trade negotiators, according to Treasury Secretary Scott Bessent.

What’s the current status of U.S.–EU trade negotiations?

Negotiations are tense and tactical. The U.S. feels the EU is offering too little, too late—especially compared to progress seen with other trading partners. The EU, meanwhile, sees Trump’s tactics as bullying, but acknowledges the need to protect market access to the U.S.—its largest export destination.

Previously, the EU paused its own retaliatory tariffs, which were set to hit €18 billion in U.S. goods, and is currently consulting on broader countermeasures. For now, diplomacy has prevailed—but only just.

The key sticking points? Automotive trade, agriculture, and digital services, as well as long-standing disagreements over steel and aluminium tariffs, which remain at 25% despite multiple pauses and resets.

Which sectors and imports are most at risk?

If the 50% tariffs are implemented on July 9, no EU sector is safe—but some are more vulnerable than others. Think automobiles, machinery, food and beverages, pharmaceuticals, and luxury goods.

Many European manufacturers rely on just-in-time supply chains and U.S. distribution networks. A sudden surge in duties would disrupt pricing, logistics, and contractual obligations.

U.S. importers face serious cost increases—and many may pull back orders, reroute sourcing, or cancel shipments entirely.

For customs professionals, that means increased workload, new classification reviews, and urgent origin checks.

What does this mean for customs compliance and supply chain planning?

Tariff volatility is a compliance nightmare. Importers must now prepare for contingency filing strategies, including:

Reviewing HTS codes for potential reclassification.
Exploring Chapter 98 provisions for U.S. customs duty avoidance.
Considering free trade zones (FTZs) or bonded warehouses for duty deferral.
Engaging in product exclusions or advance ruling requests with CBP.
Implementing real-time tariff tracking systems to stay compliant.

If your company relies on EU-origin goods, you must now assess sourcing diversification and supplier communication to mitigate risk before July 9.

How should EU and U.S. businesses prepare for July 9?

Act now, not later. Businesses must assume that Trump’s 50% tariff threat is real. Prepare your customs and trade compliance teams to handle the possible fallout.

I recommend:

Immediate risk assessment of your EU–U.S. trade flows.
Customs impact simulation—What does 50% look like on your current imports?
Supplier collaboration to prepare for pricing and logistics disruptions.
U.S. Customs Consultant engagement to review alternative duty programs.
Scenario planning across procurement, finance, and legal functions.

Delay is not cancellation. Don’t be caught unprepared.

Arne’s Takeaway

This is high-stakes poker between two economic giants. Trump’s tariff deadline extension isn’t a sign of peace—it’s a final countdown. Businesses that trade across the Atlantic must prepare for impact, not just negotiation. Secure your supply chains, tighten compliance, and strategize—July 9 is coming.

Expert Recommendations

Run a customs impact analysis on your entire EU–U.S. product portfolio.
Check your HTS codes and classification accuracy—this matters more than ever.
Use Chapter 98 provisions where eligible to reduce duty exposure.
Engage a customs consultant to prepare alternate import strategies.
Communicate proactively with EU suppliers to anticipate delays or cost hikes.

Disclaimer

This blog is for educational purposes only and does not constitute legal or professional advice. For specific guidance, consult a licensed trade or legal expert.