Trump threatens EU with ‘much higher' tariffs if no trade deal signed by new deadline

• Trump previously threatened to raise tariffs on EU cars and trucks to 25%, though his latest comments suggest he may be backing away from that immediate threat pending the July 4 deadline.
• A U.S. trade court ruled that Trump's latest 10% global tariffs were not justified under U.S. law, marking a setback for the administration's trade policy.
• EU Parliament's chief trade negotiator acknowledged 'good progress' toward dropping levies to zero but noted 'there is still some way to go,' with next talks scheduled for May 10.

Summary

Key Development: President Donald Trump has set a July 4, 2026 deadline for the European Union to ratify a trade agreement reached in Turnberry, Scotland in July 2025, threatening "much higher" tariffs if the bloc fails to comply.

Main Details:

• Trump accused the EU of not fulfilling its commitment to cut tariffs to zero under what he called the "largest trade deal ever"
• The president previously threatened to raise tariffs on EU cars and trucks to 25%, though the latest statement suggests he may be backing away from immediate implementation
• The warning follows Trump's claim that the EU has not delivered on promises made in the Turnberry agreement
• It remains unclear whether threatened tariffs would apply to all EU goods or only automobiles

EU Response:

• European Commission President Ursula von der Leyen confirmed the bloc remains "fully committed" to implementation
• Von der Leyen stated "good progress is being made towards tariff reduction by early July"
• EU Parliament's chief trade negotiator Bernd Lange acknowledged progress but noted "there is still some way to go"
• Next round of trade negotiations scheduled for May 10

Market Context:

• A U.S. trade court recently ruled Trump's 10% global tariffs were not justified under U.S. law, marking a setback for the administration's trade policy
• U.S. Trade Representative Jamieson Greer expects the EU to honor its commitments from the July 2025 agreement

Timeline: July 4, 2026 represents America's 250th birthday and serves as Trump's ultimatum date for EU compliance.