US President Donald Trump has threatened the European Union with “much higher” tariffs by 4 July if the bloc fails to drop its levies on American goods to zero.
Following a phone call with European Commission President Ursula von der Leyen, Trump said he agreed to give the EU until “our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels”.
Von der Leyen, however, said the EU was making “good progress towards tariff reduction” ahead of Trump’s deadline.
The renewed tariff threat came hours after a US trade court ruled that Trump’s latest 10% global tariffs were not justified under US trade law, a decision that could open the door for further legal challenges.
A trade agreement between the EU and the US was reached in July last year, but efforts to implement the deal stalled on Wednesday after negotiations between EU lawmakers and member states ended without consensus.
“We remain fully committed, on both sides, to its implementation,” von der Leyen said on X on Thursday.
Under the agreement, EU exports to the US would face a 15% tariff, down from Trump’s earlier threat of 30% tariffs on European goods.
The European Parliament gave conditional approval to the deal in March, backing legislation to implement it while introducing safeguards to ensure the US honoured its commitments.
Lawmakers insisted they would only support zero tariffs on US goods if European products made with steel and aluminium were exempted from Trump’s global 50% tariff on those metals.
Although the deal has advanced through parliament, it still requires approval from all 27 EU member states.
Before Trump’s latest remarks, the European Parliament’s chief negotiator Bernd Lange said talks were progressing.
“There is still some way to go,” Lange said, adding that negotiators would meet again on 19 May in Strasbourg.
“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,” he added.
Last week, Trump accused the EU of “not complying with our fully agreed to trade deal” and threatened to raise tariffs on trucks and cars to 25%.
The original agreement was reached after Trump completed a round of golf at his resort in Turnberry, Scotland.
Meanwhile, Trump’s broader tariff measures continue to face legal scrutiny in the US.
On Thursday, the US Court of International Trade ruled that the president’s latest 10% global tariff was not justified under the Trade Act provision he used to impose it.
Trump introduced the levy on 24 February after a US Supreme Court decision struck down his earlier “freedom day” tariffs imposed last year.
The court ruling currently applies only to tariffs affecting 2 importing companies, but it is expected to pave the way for additional court challenges.
Faridah Abdulkadiri
