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Tariffs, here are the latest trump cards between the US and the EU

Trump has given the EU until July 4th to implement the trade agreement, otherwise threatening "much higher" tariffs on European goods. Meanwhile, von der Leyen confirms progress and mutual commitment.

Trump has issued a new ultimatum to the European Union on trade tariffs, setting the deadline as July 4, the 250th anniversary of American independence. After a phone call with Commission President Ursula von der Leyen, The Donald threatened “much higher” tariffs if Brussels does not fully implement the agreement reached last summer in Turnberry.

On the European side, there is talk of “good progress” towards tariff reductions, but political issues remain and divisions between Parliament and Member States complicate the picture.

Trump’s ultimatum

In his post on Truth Social yesterday, the White House chief recalled having spoken with European Commission President Ursula von der Leyen and having given her time until the “250th birthday of our country.”

“I have patiently waited – wrote the tycoon – for the EU to honor its part of the historic trade deal we agreed upon in Turnberry, Scotland, the biggest trade deal ever!”

“A promise – he added – was made: the EU would implement its part of the deal and, as planned, would cut its tariffs to ZERO! I agreed to give them time until our country’s birthday or, unfortunately, their tariffs will immediately jump to much higher levels.”

Just a few days earlier, Trump had threatened to raise tariffs on European cars from 15% to 25%, accusing Europe of not honoring the agreements.

Ursula’s response

Ursula von der Leyen responded with a message on X, confirming the call and mutual commitment.

“We discussed the EU-US trade deal. We remain fully committed, on both sides, to its implementation. Good progress is being made towards tariff reductions by early July,” she wrote.

The European leader also emphasized agreement on another hot issue: “We are completely united that Iran must never have a nuclear weapon.”

Trump used similar words, stating that “a regime that kills its own people cannot control a bomb that can kill millions of people.”

The state of the trade deal

The deal dates back to last summer, reached after a round of golf in Turnberry. It provides that the United States applies an overall 15% tariff on most European goods, in exchange for a zeroing of European tariffs on many American industrial and agricultural goods.

The European Union conditionally approved the text in Parliament in March, but with safeguards requested by MEPs, including the possibility to suspend the deal if Trump imposed new tariffs or threatened the EU’s territorial integrity.

As highlighted by the BBC, negotiations between MEPs and national governments are not yet closed, but chief negotiator Bernd Lange spoke of “good progress, although there is still work to be done.”

The next round is scheduled for May 19 in Strasbourg. Cyprus, holding the rotating presidency of the Council, has expressed the desire to maintain “positive momentum.”

Internal EU frictions and demands for guarantees

The main issue remains the safeguards. Many MEPs, recalls Reuters, want to include clauses conditioning European tariff cuts on the actual fulfillment of commitments by the US, with the possibility to revoke concessions in 2028 if necessary. National governments, on the other hand, would prefer to proceed faster with the original text, without further complications.

As the Financial Times writes, parliamentary approval was also delayed by dissatisfaction over Trump’s Greenland campaign.

Euronews highlights that Trump’s threat to raise tariffs on cars has strengthened the position of those skeptical about the deal, fearing that the American president may demand further concessions in the future, possibly also targeting European digital and environmental rules.

US rulings complicating the scenario

The situation is further complicated by judicial developments in the United States. In February, the Supreme Court limited Trump’s powers to impose emergency tariffs, prompting the administration to introduce a temporary 10% tariff.

Last Thursday, a US trade court ruled that even this 10% was not justified by law, opening the door to new legal challenges, as BBC points out.

However, sectoral tariffs on cars were not affected by this ruling and remain a tool available to Trump.

The administration is still working on other investigations to justify possible new measures on pharmaceuticals and semiconductors.

What could happen next

At the moment, the 25% threat on cars seems postponed, but Trump has hinted that without concrete progress, tariffs could rise on multiple sectors.

On the European side, there is cautious optimism: von der Leyen speaks of progress towards the July goal and most diplomats in Brussels believe that Trump, as often happens, uses threats as a negotiating lever before mediating.

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