Former US President Donald Trump has issued a stark ultimatum to the European Union, demanding the bloc eliminate its tariffs on American goods to zero by 4 July, or face the immediate imposition of “much higher” tariffs. The threat comes amidst ongoing efforts to enact a trade deal initially struck last year, which has encountered recent legislative hurdles.
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Following a phone call with European Commission President Ursula von der Leyen, Trump took to social media to announce his position. “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” he wrote, referencing the upcoming Independence Day deadline. He asserted that the EU had signed a “historic trade deal” and committed to tariff reductions.
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However, von der Leyen offered a more measured response, stating that the bloc was making “good progress towards tariff reduction” ahead of Trump’s deadline. She affirmed the EU’s commitment, saying, “We remain fully committed, on both sides, to its implementation.” Her comments, posted on X, indicate a continued effort despite the renewed pressure from the former president.
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The trade agreement, initially reached by von der Leyen and Trump in July last year, has faced difficulties in its implementation. Progress stumbled recently after talks between EU lawmakers and governments concluded without a definitive agreement. Under the terms of the original agreement, US tariffs on exports from the EU would be set at 15%, a figure Trump had previously threatened to escalate to 30% on European goods.
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The European Parliament granted conditional approval to the deal in March, with a majority of lawmakers backing the necessary legislation. This approval, however, included several safeguards designed to ensure the US upheld its commitments. Specifically, parliamentarians voted to accept zero tariffs on US goods only if European goods made with steel and aluminium were exempted from Trump’s global 50% tariff on those metal products.
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Despite the parliamentary progress, the deal still requires endorsement from all 27 member states of the European Union, adding another layer of complexity to its final enactment. Earlier on Thursday, prior to Trump’s social media statement, Bernd Lange, the European Parliament’s chief negotiator, acknowledged good progress in negotiations but cautioned that “there is still some way to go.”
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Negotiators are scheduled to reconvene for another round of talks on 19 May in Strasbourg, indicating ongoing diplomatic efforts to bridge the remaining gaps. Lange reiterated the Parliament’s resolve, stating, “We remain more committed than ever to advance and defend Parliament’s mandate so as to provide additional guarantees that will benefit citizens and companies in both the EU and the US.”
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This latest ultimatum echoes previous warnings from Trump. Last week, he accused the EU of “not complying with our fully agreed to trade deal” in a post on Truth Social, threatening to increase tariffs on trucks and cars to 25%. The original agreement on tariffs and trade was notably reached after the US President concluded a round of golf at his luxury resort in Turnberry, Scotland.
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The looming 4 July deadline places significant pressure on EU negotiators and member states to finalize the complex trade agreement. Failure to meet Trump’s demands could reignite a transatlantic trade dispute, potentially leading to substantial tariff increases and further economic uncertainty for businesses on both sides.
