Trump Issues Tariff Ultimatum to EU
President Donald Trump has warned the European Union (EU) that tariffs on its goods will increase significantly by 4 July unless the bloc eliminates its levies on US products entirely.
Following a phone conversation with European Commission President Ursula von der Leyen, Trump stated he was willing to grant until "our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels".
In response, von der Leyen indicated that the EU was making "good progress towards tariff reduction" as the deadline approached.
US Trade Court Challenges Trump's Tariffs
Shortly after Trump's announcement, a US trade court ruled that the president's recent 10% global tariffs were not justified under US trade law, potentially opening the door for future legal challenges.
Background on the Trade Deal
A trade agreement between von der Leyen and Trump was reached in July of the previous year. However, progress stalled on Wednesday after discussions between EU lawmakers and member governments failed to reach a consensus.
"We remain fully committed, on both sides, to its implementation,"von der Leyen stated on X on Thursday.
According to the agreement, US tariffs on EU exports would be set at 15%, whereas Trump had previously threatened to impose tariffs as high as 30% on European goods.
The European Parliament conditionally approved the deal in March, with a majority of lawmakers supporting legislation to enact the agreement. However, they included several safeguards to ensure the US complied with its obligations under the pact.
Parliament members stipulated that zero tariffs on US goods would only be accepted if European goods containing steel and aluminium were exempt from Trump's global 50% tariff on those metals.
Despite parliamentary progress, the deal still requires approval from all 27 EU member states.
Ongoing Negotiations and Statements
Before Trump's social media statement on Thursday, Bernd Lange, the European Parliament's chief negotiator, remarked that lawmakers and governments were making good progress but acknowledged that "there is still some way to go."
The negotiators are scheduled to resume talks 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,"Lange said in a statement.
Last week, Trump accused the EU of "not complying with our fully agreed to trade deal" in a post on Truth Social and threatened to raise tariffs on trucks and cars to 25%.
The original tariff and trade agreement was reached after Trump concluded a round of golf at his luxury resort in Turnberry, Scotland.
Legal Challenges to Tariff Measures
As trade and tariff negotiations continue, Trump has faced difficulties in legally sustaining his broader tariff policies.
On Thursday, a US trade court ruled that Trump's latest 10% global tariffs were not justified under US trade law.
These tariffs were introduced on 24 February following a US Supreme Court decision that invalidated his previous "freedom day" tariffs imposed the prior year.
Trump had invoked Section 122 of the 1974 Trade Act, which permits temporary duties to address serious "balance of payments deficits," when implementing the new tariff. The 10% levy is scheduled to remain in effect until late July.
The US Court of International Trade determined that this law was not an appropriate basis for the deficits cited by the president.
However, the ruling does not universally block the 10% tariffs. It applies specifically to importer tariffs for two companies but may lead to further court challenges.
