US President Donald Trump backed away on Sunday from his threat to slap 50 per cent tariffs on imports from the European Union next month, agreeing to extend the deadline until July 9 for talks between Washington and the 27-nation bloc to produce a deal.

Trump on Friday said he was recommending a 50pc tariff go into place on June 1 because of frustration that talks with the EU were not moving quickly enough. The threat roiled global financial markets and intensified a trade war that has been punctuated by frequent changes in tariff policies toward US trading partners and allies.

Trump, who has repeatedly expressed

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