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The U.S. president has given the European Union until July 4 to implement a trade agreement, warning that otherwise U.S. tariffs will be raised to significantly higher levels.
On May 7, President Donald Trump wrote on Truth Social that he remains patient for the EU to fulfill its commitments under the trade agreement reached last July. “The EU has committed to reducing its import tariffs to zero. I’m giving them until America’s Independence Day; otherwise, their tariffs will jump to much higher levels,” he said. The post followed what Trump described as a “wonderful phone call” with European Commission President Ursula von der Leyen.
In late 2025, Trump said he would raise tariffs on European cars from 15% to 25%, citing the bloc’s failure to comply with the agreement.
The accord is designed to reduce EU tariffs on U.S. industrial goods to 0% and to provide tariff-free quotas for some U.S. agricultural and seafood products. However, the legislative process required to implement the deal in the European Parliament has been slow.
In a post on X, von der Leyen said she discussed the trade deal with Trump, along with Iran. “We remain committed to fully implementing our respective obligations. The path toward tariff reductions before July is progressing well,” she wrote.
Bernd Lange, chair of the European Parliament’s Committee on International Trade, said lawmakers and governments are making progress toward finalizing a tariff-free agreement on U.S. goods, but “there is still a long way to go” due to remaining differences over protective measures that some EU member states are seeking.
Some members of the European Parliament have called for tougher safeguards, including:
U.S. Trade Representative Jamieson Greer said the deadline for the EU to implement the deal “has long passed,” suggesting the U.S. could take actions beyond raising car tariffs if the EU does not comply.
“Cars are only part of it. There are many other issues that the U.S. remains fully compliant with, contrary to Europe for months now,” Greer told Bloomberg Television.
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