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Trump Sets July 4 Ultimatum for EU Trade Deal, Threatens Higher Tariffs

A brief pause on a planned auto-duty increase follows his call with Ursula von der Leyen.

Overview

  • Trump set a July 4 deadline on Thursday for the EU to implement the Turnberry pact, warning EU goods would face “much higher” U.S. tariffs if the deal is not in place.
  • After the call, financial outlets reported he offered a short reprieve on a planned jump to a 25% tariff on European autos, leaving the sector in a temporary holding pattern.
  • The Turnberry framework caps most U.S. tariffs on EU goods at 15% while the EU would drop duties on U.S. industrial products and some farm items to zero.
  • Court rulings have narrowed Washington’s tariff tools, with a February Supreme Court decision curbing broad emergency tariff powers and a U.S. trade court on Thursday rejecting the administration’s 10% global duty.
  • EU lawmakers gave conditional approval in March, but all 27 member states still must sign off, with some pushing rapid ratification and others seeking suspension clauses and a sunset date as talks continue under Cyprus’s rotating Council presidency.