Trump Sets Deadline for EU to Approve US Trade Deal by July 4 or Encounter Increased Tariffs
Trump cautions that EU tariffs will significantly increase by July 4 if the bloc does not approve the US trade agreement.
US President Donald Trump has issued a warning to the European Union, stating that “much higher” tariffs will be imposed by 4 July if the bloc does not eliminate its levies on American goods entirely.
After a phone call with European Commission President Ursula von der Leyen, Trump stated that he consented to grant the EU until “our country’s 250th birthday or, regrettably, their tariffs would promptly escalate to significantly higher levels.”
Von der Leyen stated that the EU is making “good progress toward tariff reduction” in anticipation of Trump’s deadline.
The revived tariff threat emerged shortly after a US trade court determined that Trump’s recent 10% global tariffs lacked justification under US trade law, a ruling that may pave the way for additional legal challenges.
A trade agreement between the EU and the US was reached in July last year; however, efforts to implement the deal encountered a setback on Wednesday when negotiations between EU lawmakers and member states concluded without reaching a consensus.
“We are entirely dedicated, on both sides, to its implementation,” von der Leyen stated on X on Thursday.
According to the agreement, EU exports to the US will incur a 15% tariff, a reduction from Trump’s previous warning of 30% tariffs on European products.
In March, the European Parliament granted conditional approval to the deal, supporting legislation for its implementation while adding safeguards to ensure that the US would uphold its commitments.
Lawmakers emphasized that their backing for zero tariffs on US goods would be contingent upon the exemption of European products made with steel and aluminum from Trump’s global 50% tariff on those metals.
While the deal has progressed through parliament, it still needs the approval of all 27 EU member states.
Prior to Trump’s recent comments, Bernd Lange, the chief negotiator for the European Parliament, indicated that discussions were advancing.
“There is still some progress to be made,” Lange stated, noting that negotiators are scheduled to reconvene on 19 May in Strasbourg.
“We are more dedicated than ever to promoting and safeguarding Parliament’s mandate to ensure further assurances that will benefit both citizens and companies in the EU and the US,” he added.
Recently, Trump claimed that the EU was “not complying with our fully agreed-to trade deal” and warned of a potential increase in tariffs on trucks and cars to 25%.
The initial agreement was established following Trump’s completion of a round of golf at his resort in Turnberry, Scotland.
At the same time, Trump’s extensive tariff measures are still under legal examination in the US.
On Thursday, the US Court of International Trade determined that the president’s recent 10% global tariff lacked justification under the Trade Act provision he cited for its implementation.
On 24 February, Trump announced the levy following a US Supreme Court ruling that invalidated his previous “freedom day” tariffs implemented the prior year.
The current court ruling pertains solely to tariffs impacting two importing companies; however, it is anticipated to set a precedent for further legal challenges.
