Last Sunday returning to Washington, President Donald Trump announced he decided to postpone, until July 9, the imposition of 50 percent tariffs against imports from the European Union.  President Trump said the decision to pause resulted from a conversation with the president of the European Commission Ursula von der Leyen, who requested the extension, andhe agreed because it was his “privilege to do so.” (The Washington Post 05/26/25).  

This is the third time, since so-called “Liberation Day” (April 2), that the White House has reversed the decision to impose tariffs against almost all the world, in what apparently is becoming a pattern of threats and suspensions.

The first reversal came when the announcement of “reciprocal tariffs” spooked the markets, particularly the bond market, which lead to a 90-day deferment. The second retreat was with China, after the announcement of “incredible and unsustainable” tariffs of more than 100 percent, followed by the proportionate retaliation from the Chinese government. Both parties meeting in Geneva agreed to pause for 90 days the imposition of tariffs and undertake negotiations.

Therefore, the last reversal with the European Union perhaps augurs a positive outcome, if such a tortuous pattern of threats and retreats ends in more open trade relations.

*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.