Trump Gives EU Deadline Until July 4 to Fulfill Trade Deal, Threatens Tariff Increase
The U.S. President has postponed the increase of tariffs on EU cars to 25% until July 4, giving the European Union time to meet the conditions of the trade agreement. This statement followed a phone call with European Commission President Ursula von der Leyen, but specific violations by the EU were not clarified.
Last week, Trump indicated that tariffs on EU-made cars would be raised from 15% to 25% sometime this week.
The U.S. President stated that he has been waiting for the EU to fulfill its part of the historic trade deal agreed upon in Scotland, reminding that the EU promised to reduce tariffs to zero.
Trump agreed to give the EU time until July 4, the U.S. Independence Day.
According to the agreement reached last summer, the EU committed to eliminating tariffs on American goods, while the U.S. agreed to a single tariff of 15% on most EU products. However, the agreement has yet to be ratified.
The European Parliament and member states are negotiating legislation to eliminate tariffs, but a recent round of talks ended in failure, although progress was noted.
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The main sticking point is the lawmakers' demand for guarantees in case Trump violates commitments.
Member states prefer to stick to the original wording without guarantees and implement the deal as soon as possible.
Trump's threat to raise tariffs has strengthened the position of critics of the agreement, who fear that the U.S. President will demand further concessions from Europeans. The White House has also opposed the EU's digital and environmental standards.
Earlier this week, Ursula von der Leyen responded to Trump, emphasizing that a deal is a deal, and it should bring mutual benefits and reliability.
The phone call, which Trump described as "magnificent," seemed to ease tensions for now, and the leaders also discussed the situation in the Middle East.
Trump noted their unity on preventing Iran from obtaining nuclear weapons.
Most officials and diplomats in Brussels do not expect the 25% tariff to be implemented, considering that Trump often makes threats and then changes his mind.
