50% tariffs to E.U. delays until July 9th: Trump agreed it
Ursula von der Leyen, President of the European Commission, asked Donald Trump for a June 1 extension of the 50% tariff on trade with the EU. The new deadline is July 9.
"I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension of the June 1st deadline on the 50% tariff regarding trade with the European Union." This was the confirmation of the delay on the 50% tariffs given by President Donald Trump last Sunday.
July 9th is the new deadline for the European Union. The president set this new date after a call that von der Leyen described as a "good call." She also said that they need an extension in order to "reach a good deal" between the two global powers.
Trump against the E.U.
Donald Trump imposed a 20% tariff on the E.U. early this year. However, on April 9th, the president dropped it to 10% for 90 days in order to allow new trade negotiations between the U.S. and other countries affected by the increased tariffs.
Despite his willingness to negotiate, President Trump suggested last week that he will apply a 50% tariff because, in his own words, the 27-nation union "has been very difficult to deal with." Meanwhile, the E.U. began a closer relationship with the United Kingdom, reaching new deals on market and trade issues.
Target, one of the biggest companies on the U.S. is tryign to not increased their prices but called it a "very last resort". Photo: AFP News
Trade war consequences on business
According to a Main Street Alliance survey, 81.5% of small business owners said that they must raise their prices to handle the new tariffs and 31.5% must lay off workers. But big companies also had problems with the tariffs, such as Walmart and sports retailer Nike, who announced price increases earlier this May.
Other large corporations, such as Home Depot, have maintained their prices, saying that they can adapt to the tariffs. On their side, Target called price increases a "very last resort." Quince, the online clothing and home goods retailer, told their customers that they are going to maintain their prices "for as long as we can."
