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Trump sets July 4 deadline for EU to eliminate tariffs
US President Donald Trump warned the European Union on Thursday that tariffs on its goods would rise sharply if the bloc does not reduce its levies on American products to zero by Independence Day. The threat came after a call with European Commission President Ursula von der Leyen, who reported progress in negotiations but stopped short of confirming a full rollback.
EU cites progress but hurdles remain
Von der Leyen acknowledged ongoing discussions, stating on social media that both sides were committed to implementing last year's trade agreement. However, talks between EU lawmakers and member states stalled earlier this week, delaying final approval. The European Parliament conditionally backed the deal in March, but only if the US exempted EU steel and aluminum from its global 50% tariff on those metals.
The agreement, struck in July 2025, would cap US tariffs on EU exports at 15%, down from Trump's earlier threat of 30%. Yet, ratification requires unanimous support from all 27 member states, and negotiations are set to resume on May 19 in Strasbourg.
"We remain more committed than ever to advance and defend Parliament's mandate to provide additional guarantees for citizens and companies," said Bernd Lange, the European Parliament's chief negotiator.
Bernd Lange, European Parliament
Trump's tariff strategy faces legal challenges
Hours before Trump's ultimatum, a US trade court ruled that his latest 10% global tariff, imposed in February, lacked legal justification under US trade law. The decision, which applies to two importers, could open the door to broader challenges against the levy, set to expire in late July.
Trump had cited Section 122 of the 1974 Trade Act, arguing the tariffs were necessary to address balance-of-payments deficits. The court disagreed, though the ruling does not immediately invalidate the measure. Last week, Trump accused the EU of violating the trade deal and threatened to raise tariffs on cars and trucks to 25%.
Negotiations overshadowed by political tensions
The original tariff agreement was finalized in July 2025 after Trump concluded a round of golf at his Turnberry resort in Scotland. Since then, implementation has stalled amid disputes over safeguards and compliance. Von der Leyen emphasized mutual commitment to the deal, but Trump's latest threat underscores the fragility of the truce.
Analysts note that the July 4 deadline coincides with heightened political rhetoric in the US, where trade policy remains a contentious issue ahead of the November elections.
