Trump sets July 4 deadline for EU on trade deal
Theo Al Jazeera English
President Donald Trump has threatened to raise tariffs on the European Union if it fails to finalize a trade deal by July 4, despite a phone call he called 'great' with EU chief Ursula von der Leyen. Trump warned of higher duties, including on cars and trucks, accusing the bloc of not upholding its commitments.
US President Donald Trump has issued an ultimatum to the European Union, demanding the bloc finalize a previously agreed trade deal by July 4, or face higher US tariffs.
The announcement came Thursday after a phone call Trump described as "great" with European Commission President Ursula von der Leyen. On Truth Social, Trump wrote: "I have patiently waited for the EU to do its part under the Historic Trade Agreement signed at Turnberry, Scotland, the largest trade deal ever!"
The 27-nation bloc has yet to finalize the agreement. Trump stressed: "A promise was made that the EU would do its part and, under the deal, cut tariffs to zero percent! I have given her the deadline of our country's 250th birthday, or else their tariffs will immediately be raised to much higher levels."
Trump also threatened to increase tariffs on EU cars and trucks to 25% from the current 15%, accusing the bloc of non-compliance. According to the European Automobile Manufacturers Association (ACEA), the automotive sector accounts for 8% of total US-EU trade.
Under the original framework, the US would apply a 15% tariff rate on most imports from the EU, not only cars and trucks. However, after a Supreme Court ruling, the Trump administration imposed a temporary 10% tariff while investigating trade imbalances and national security issues, aiming to propose new rates to offset lost revenue.
Beyond trade, Trump revealed the two leaders also discussed Iran and agreed that Tehran must never be allowed to possess nuclear weapons.
