US President Donald Trump has extended the deadline for EU-US trade talks to 9 July, temporarily averting a steep hike in tariffs that threatened to disrupt global supply chains. Initially set for 1 June, the increase could have seen import duties on European goods soar to 50%.
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The decision follows a "very nice" conversation with European Commission President Ursula von der Leyen, in which both parties agreed to continue negotiations. Trump, who earlier imposed a 20% tariff on most EU imports before lowering it to 10% to allow for talks, described the tariffs as "medicine" necessary to address trade imbalances.
Von der Leyen signalled a willingness to move forward "swiftly and decisively" but stressed the need for more time to secure a fair deal. Despite ongoing friction, both sides have expressed a shared interest in avoiding escalation.
The uncertainty has already prompted major brands to adjust operations. Nike announced price hikes effective 1 June, increasing some footwear prices by up to £7.50. The company will also resume direct sales via Amazon in the US, a move seen as a strategic response to shifting market dynamics.
Meanwhile, Shein has increased prices in the US by as much as 377%, blaming new duties and exploring production shifts to Vietnam to limit exposure.
Retailers and consumers alike now face a summer of volatility as global trade negotiations unfold under mounting pressure.
Source: www.retailgazette.co.uk