Trump warns EU to implement trade deal by July 4 or face much higher tariffs. Tensions rise as lawmakers clash over safeguards and US threats.
US President Donald Trump has given the European Union until July 4 to fully implement its trade deal with the United States or face much higher tariffs. Trump announced the deadline after a phone call with European Commission President Ursula von der Leyen on Thursday, as tensions between the two sides continue to rise.
The announcement postpones a threat Trump made last Friday, when he said tariffs on EU made cars would be hiked from 15 percent to 25 percent sometime this week. Writing on social media, Trump said he had been waiting patiently for the EU to fulfill their side of the historic trade deal agreed in Turnberry, Scotland.
He described it as the largest trade deal ever. Trump noted that a promise was made that the EU would deliver their side of the deal and cut their tariffs to zero as agreed. Referring to the US independence day, known as the Fourth of July, he said he agreed to give von der Leyen until the country’s 250th birthday.
Unfortunately, he warned, otherwise their tariffs would immediately jump to much higher levels. Under a lopsided deal reached last summer, the EU committed to slashing remaining tariffs on US goods. In exchange, the US agreed to an all inclusive 15 percent tariff on most EU products, which prevented the accumulation of additional duties.
The European Parliament and member states are currently negotiating the legislation that would enable the removal of tariffs. A round of talks failed on Wednesday evening, but legislators hailed progress towards a possible resolution on May 19. The main sticking point is a demand from lawmakers to insert safeguards in case Trump breaches the joint commitments.
They also want protections if he threatens the bloc’s territorial integrity, as he did earlier this year when he threatened to forcefully seize Greenland from Denmark. Member states prefer to stick to the original wording, which did not include any safeguards, and implement the deal as soon as possible.
However, Trump’s threat to hike tariffs from 15 percent to 25 percent has further emboldened critics of the agreement. They believe the US president will, sooner or later, backtrack and demand more concessions from the Europeans. The White House has repeatedly attacked the bloc’s digital and environmental regulations and openly called for their abolition.
In her own social media message, von der Leyen expressed confidence that the pending legislation would be approved before the deadline. She said both sides remain fully committed to the implementation of the deal. Good progress is being made towards tariff reduction by early July, she added.
Earlier this week, she had hit back at Trump’s sudden threat, saying a deal is a deal and stressing that the bloc was prepared for every scenario. Von der Leyen also reminded Trump that, under the 15 percent all inclusive cap in the trade deal, the US cannot unilaterally hike tariffs.
Thursday’s phone call, which Trump described as great, appears to have eased tensions for now. Most officials and diplomats in Brussels did not expect the 25 percent tariff to materialize, given Trump’s track record of issuing threats and then changing his mind.
The two leaders also discussed the conflict in the Middle East. Trump said they are completely united that Iran can never have a nuclear weapon. He added that they agreed a regime that kills its own people cannot control a bomb that can kill millions.
Von der Leyen echoed the message, stating that recent events have clearly shown that the risks to regional stability and global security are too great.
