Trump threatens EU with tariff hike by July 4 if trade deal not ratified
President Donald Trump has issued a deadline of July 4 for the European Union to finalize a trade agreement, warning of significantly increased tariffs if they fail to do so. He informed EU leader Ursula von der Leyen that without a completed deal by the time the U.S. celebrates its 250th anniversary, tariffs would escalate to 'much higher levels.' The agreement, reached last July, currently imposes a 15 percent tariff on most EU products, but member states have not yet reached a consensus on the final terms. Trump has threatened to increase tariffs on EU automobiles and trucks to 25 percent, citing the bloc's lack of compliance. Cyprus, which holds the rotating EU presidency, is working to foster positive discussions with MEPs on May 19.
Key facts
- Trump gave EU until July 4 to ratify trade deal or face higher tariffs
- Trump spoke to EU chief Ursula von der Leyen about the issue
- July 4 marks 250 years since American independence
- Current deal sets tariffs on most EU goods at 15 percent
- Final version of pact still needs member state agreement
- Trump previously threatened 25 percent tariffs on EU cars and trucks
- Cyprus holds rotating presidency of the Council of the European Union
- Cyprus wants to maintain positive momentum at talks with MEPs on May 19
Entities
Institutions
- European Union
- United States
- Council of the European Union
Locations
- United States
- European Union
- Cyprus
- Washington