U.S. President Donald Trump has given the European Union until July 4 to fulfill its commitments under a trade agreement, warning of significant tariff increases on EU goods, including automobiles, if the deadline is not met.
This announcement was made on May 7, as reported by Reuters, following a conversation between Trump and Ursula von der Leyen, President of the European Commission.
“I have patiently waited for the EU to fulfill its part of the historic trade deal we made in Turnberry, Scotland, the largest trade deal in history,” Trump stated.
Trump emphasized that the deadline coincides with the 250th anniversary of the United States, indicating that if the EU fails to comply, tariffs would be raised to a “significantly higher level.” On May 1, he had already announced an increase in tariffs on EU automobiles from a previously agreed 15% to 25%, citing the EU’s non-compliance with the agreement made in Scotland in July 2025.
The agreement stipulated that the EU would eliminate tariffs on American industrial goods and provide duty-free quotas for certain U.S. agricultural products and seafood. However, the legislative process required for the EU to implement the agreement has been slow within the European Parliament.
Von der Leyen confirmed on social media that she discussed the trade agreement with Trump.
“Both sides remain fully committed to its implementation. We are making good progress in reducing tariffs by early July,” she wrote.
On the same day, Bernd Lange, chair of the European Parliament’s trade committee, indicated that EU lawmakers and governments are nearing a conclusion on the agreement to eliminate tariffs on American goods, but noted that “there is still work to be done” due to differences regarding safeguards sought by some of the 27 EU member states.
The next round of negotiations between EU representatives is scheduled for May 19. Some European lawmakers are advocating for stricter safeguards in the legislation, including provisions to suspend the agreement if the U.S. fails to comply, linking tariff reductions to U.S. actions, and a complete cessation of EU tariff concessions by March 31, 2028.
On May 6, U.S. Trade Representative Jamison Greer remarked that the EU’s implementation is “already delayed,” and added that, in addition to raising tariffs on automobiles, other measures could also be considered.
“Autos are just one element. The agreement includes other elements where the U.S. has fully met its obligations, unlike the Europeans, who have not done so for many months,” Greer told Bloomberg Television.
President Trump has set a July 4 deadline for the EU to meet trade agreement obligations, threatening increased tariffs if compliance is not achieved. Ongoing negotiations highlight the complexities involved in finalizing the agreement.
Source: Reuters