Trump Defers EU Tariffs Until July 9, Calling It a Temporary Economic Measure

- Former U.S. President Trump Defers 50% Tariff Imposition on the EU - White House Announces Temporary Measures to Ease Economic Burden [Unblock Media] Former U.S. President Donald Trump has decided to defer the imposition of a 50% tariff on the European Union (EU) until July 9th. The announcement brought relief to the market by temporarily halting what could have been highly damaging tariffs on European manufacturing, particularly the automotive industry. A White House spokesperson stated on the 25th, "This decision is an economic buffer measure aimed at alleviating pressures from the global supply chain and inflation." However, since this is a temporary deferral and not a structural agreement, the uncertainty remains as the tariffs could be re-imposed depending on future negotiations. Following the announcement of the tariff deferral, major U.S. financial indices rebounded immediately. The S&P 500 index rose by 1.2% compared to the previous day, while the Nasdaq index closed with a 1.5% increase. The VIX (volatility index), which reflects market uncertainty, fell sharply from 16.4 to 14.7, a drop of about 10%, indicating reduced uncertainty. Additionally, the yield on the 10-year U.S. Treasury fell slightly from 3.85% to 3.83%, signaling stability. This was interpreted as investors reacting to the "policy risk relief" in the short term. The tariff deferral was a significant boon for EU exporting countries. The German automotive industry, which was expected to be directly hit by the high tariffs, was able to breathe a sigh of relief with this announcement. The German DAX index closed up 0.8% after the announcement, and stocks of companies like BMW, Mercedes-Benz, and Volkswagen showed strong performance. Experts acknowledge this decision as a short-term positive but warn that inconsistent policies could hinder long-term planning for businesses. Dr. Lee Jae-hoon of the International Trade Research Institute stated, "This deferral is merely a political 'timeout,'" pointing out that the risk of even stronger tariffs cannot be ruled out if future negotiations fail. Additionally, some analyses suggest that if this measure is used as a domestic political card, it could negatively impact the restoration of trust with the EU. There are also concerns that repeated changes in trade policy during the U.S. election season could destabilize the global supply chain once again.