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US president grants extension request

*

European Commission chief says EU will move rapidly

*

Euro and US dollar rise against safe-haven currencies

(Adds quotes from Trump and von der Leyen in paragraphs 5-7,

detail and background paragraphs 8-12)

By Jeff Mason

MORRISTOWN, New Jersey, May 25 (Reuters) - U.S.

President Donald Trump backed away on Sunday from his threat to

slap 50% 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 50% 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 U.S.

trading partners and allies.

Trump, who has repeatedly expressed disdain for the EU and

its treatment of the United States on trade, relented after

European Commission President Ursula von der Leyen told him on

Sunday that the EU needed more time to come to an agreement.

She asked him during a call to delay the tariffs until July,

the deadline he had originally set when he announced new tariffs

in April. Trump told reporters he had granted the request.

"We had a very nice call, and I agreed to move it," Trump

said before returning to Washington after a weekend in New

Jersey. "She said we will rapidly get together and see if we can

work something out."

Von der Leyen said in a post on X that she had a "good call"

with Trump and that the EU was ready to move quickly.

"Europe is ready to advance talks swiftly and decisively,"

she said. "To reach a good deal, we would need the time until

July 9."

The euro and U.S. dollar rose against the safe-haven yen and

Swiss franc after the deadline extension.

In early April, Trump set a 90-day window for trade talks

between the EU and the United States, which was to end on July

9. But on Friday he upended that timeframe and said he wasn't

interested in a deal at all.

"I'm not looking for a deal," Trump said then. "We've set

the deal - it's at 50%." Major U.S. stock indexes and European

shares dropped and the dollar weakened as a result.

Trump has sought to upend the world economy with his trade

policies, but after his announcement in April of tariffs on

multiple countries sparked financial market upheaval, he dialed

down his threats in favor of talks. Since then Washington has

inked a pact with Britain and has held discussions with China.

But progress with the European Union has been more limited,

sparking Trump's ire and adding to broader tensions between the

two allies over Trump's "America first" agenda and Europe's

longtime reliance on Washington for security and defense needs.

(Reporting by Jeff Mason; additional reporting by Jan

Strupczewski; Editing by Leslie Adler, Diane Craft and Lincoln

Feast.)