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Trump Sets July 4 Deadline for EU Trade Deal With Threat of Higher Tariffs

The ultimatum raises pressure on an EU still split over proposed safeguards.

Overview

  • Trump, following Thursday's call with Ursula von der Leyen, set a July 4 deadline for the Turnberry deal and put an immediate auto tariff hike on hold.
  • EU negotiators ended May 6 talks without a breakthrough, and the next trilogue is scheduled for May 19 with an implementation goal around July.
  • European Parliament leaders want a suspension clause if Washington raises new duties and an expiry date, while countries such as Germany and Italy push for rapid ratification.
  • The Turnberry framework would cap most U.S. tariffs on EU goods at 15% in exchange for the EU scrapping duties on many U.S. industrial products and opening some farm access.
  • A February U.S. Supreme Court ruling that curbed earlier tariff powers has complicated the legal path, as European automakers brace for potential 25% car duties that threaten a key market supplying about 22% of EU vehicle exports.