Core Viewpoint - The recent shift in President Trump's stance on tariffs against the EU indicates a desire to maintain negotiation space and avoid escalating trade tensions, despite ongoing deep-seated economic relationship restructuring between the US and EU [2][3]. Group 1: Tariff Negotiations - Trump initially threatened to impose a 50% tariff on EU imports starting June 1, citing a lack of progress in negotiations [3]. - Following a conversation with EU Commission President Ursula von der Leyen, Trump agreed to extend the deadline for imposing tariffs to July 9, suggesting a willingness to continue discussions [3][4]. - The EU's strategy involves a dual approach: proposing conditions for tariff reductions while also demonstrating a strong stance to wait for potential shifts in the US position [4]. Group 2: Economic Impact and Market Reactions - The capital markets reacted positively to the tariff delay, with US stock index futures rising and the euro appreciating against the dollar [5]. - Despite the positive market response, analysts express concerns that the ongoing tariff threats could lead to a prolonged period of uncertainty in US-EU trade relations [5][6]. Group 3: Long-term Implications - The trade dispute reflects a broader trend of distancing between the US and EU, with both sides recognizing that a trade war would be detrimental [8][9]. - Analysts suggest that the traditional "value-based alliance" between the US and EU is evolving into a more loose-knit alliance focused on mutual interests rather than shared values [9].