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Donald Trump has given the EU a deadline until July 4th to fully implement the trade agreement with the United States, warning of facing “much higher tariffs.”
Referring to the US Independence Day, the president added: “I agreed to give them until the 250th anniversary of our country, or unfortunately, their tariffs would immediately rise to much higher levels.”
The White House issued this warning following a phone call with European Commission President Ursula von der Leyen.
This announcement comes amid escalating tensions between the EU and the United States, postponing the threat made by Trump last Friday to increase tariffs on EU-made cars from 15% to 25% later this week.
“I am patiently waiting for the EU to fulfill its part of the historic trade agreement we reached in Turnberry, Scotland, the biggest trade deal ever! We promised that the EU would fulfill its part of the agreement and, as agreed, reduce its tariffs to zero,” the US president wrote on social media.
As part of the trade agreement reached last year, the EU committed to reducing the remaining tariffs on American products. In exchange, the United States accepted an overall tariff of 15% on most EU products, preventing additional tariffs from accumulating.
The European Parliament and member states are currently negotiating legislation for tariff elimination. While negotiations stalled Wednesday evening, lawmakers praised progress for a potential resolution by May 19.
The main sticking point is lawmakers’ demand to insert safeguards in case Trump violates joint commitments or threatens the EU’s territorial integrity, such as when he previously threatened to forcibly seize Greenland from Denmark.
EU member states prefer sticking to the initial formulation without safeguards and implementing the agreement as soon as possible.
Trump’s threat to increase tariffs from 15% to 25% has bolstered critics of the agreement, who believe the US president will eventually backtrack and demand more concessions from Europeans. The White House has repeatedly criticized EU digital and environmental regulations and openly called for their abolition.
“An agreement is an agreement, and we have an agreement. The essence of this agreement is prosperity, common rules, and reliability,” Ursula von der Leyen reiterated at the beginning of the week from Armenia.
“We want this work to result in mutual gain, cooperation, and reliability. And we are ready to face all scenarios,” she added, hinting at possible retaliations.
The Commission president also reminded Trump that under the 15% overall cap stipulated by the trade agreement, the United States cannot unilaterally increase tariffs.
Thursday’s phone call, which Trump described as “great,” appears to have eased tensions—for now. The two leaders also discussed the conflict in the Middle East.
“We discussed many topics, including our total agreement that Iran can never have a nuclear weapon. We agreed that a regime that kills its own people cannot control a bomb that can kill millions of people,” the president stated.
