US President Donald Trump has warned the European Union that tariffs on European goods could rise sharply if both sides fail to finalise a trade agreement before July 4.
Trump issued the warning after a phone conversation with European Commission President Ursula von der Leyen, saying he agreed to give the EU until America’s 250th Independence anniversary to approve the deal.
According to him, if negotiations collapse, tariffs on European exports to the United States would “immediately jump to much higher levels.”
Despite the threat, von der Leyen said discussions were still moving in a positive direction and insisted both sides remained committed to reducing tariffs.
“We are making good progress towards tariff reduction,” she said in a post on X.
The trade deal, originally reached last July, would place a 15 per cent tariff on most EU exports entering the US, replacing Trump’s earlier threat of a 30 per cent levy on European goods.
However, implementation has slowed after disagreements emerged between EU lawmakers and member states over conditions tied to the agreement.
Members of the European Parliament had earlier approved the deal conditionally, insisting that European products made with steel and aluminium should not be affected by America’s separate 50 per cent tariffs on metal imports.
Negotiators from both sides are expected to resume talks later this month in Strasbourg as efforts continue to prevent another escalation in the ongoing tariff dispute.
Meanwhile, Trump’s tariff policies also faced legal pressure at home after the US Court of International Trade ruled that his latest 10 per cent global tariffs were not properly justified under American trade law.
The court said the administration relied on the wrong legal provisions when imposing the tariffs earlier this year, though the ruling currently applies only to two importing companies and does not immediately suspend the broader policy.
The development could, however, open the door for more legal challenges against the tariffs in the coming weeks.
