President Donald Trump has warned that the United States could impose “much higher” tariffs on the European Union if the bloc does not eliminate its duties on American goods by 4 July.
Following a phone call with European Commission President Ursula von der Leyen, Trump said he had agreed to extend the deadline until “our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels”.
In response, von der Leyen maintained that Brussels is still moving in the right direction, stating that the EU is making “good progress towards tariff reduction” ahead of the deadline set by Trump.
The warning came just hours before a US trade court ruled that Trump’s recent 10% global tariffs were not properly justified under US trade law, potentially opening the door to further legal challenges.
The two sides had previously reached a trade framework last July, but implementation has slowed after negotiations between EU lawmakers and member state governments stalled earlier this week.
“We remain fully committed, on both sides, to its implementation,” von der Leyen said on X on Thursday.
Under the agreement, US tariffs on EU exports would be set at 15%, although Trump had earlier pushed for duties as high as 30% on European goods.
The deal received conditional backing from the European Parliament in March, when lawmakers approved enabling legislation but added safeguards intended to ensure US compliance with the agreement.
Among those conditions is a requirement that European lawmakers only accept zero tariffs on US goods if EU steel and aluminium exports are excluded from Trump’s broader 50% metal tariffs.
Despite progress in the European Parliament, final approval is still required from the EU’s 27 member states.
Earlier on Thursday, before Trump’s latest comments, the European Parliament’s chief negotiator Bernd Lange said talks were advancing but cautioned that “there is still some way to go”.
Further negotiations are scheduled for 19 May in Strasbourg, with both sides expected to continue discussions on outstanding issues.
“We remain more committed than ever to advance and defend Parliament’s mandate so as to provide additional guarantees that will benefit citizens and companies in both the EU and the US,” Lange said.
Trump had previously escalated tensions last week, accusing the EU of “not complying with our fully agreed to trade deal” and threatening to raise tariffs on cars and trucks to 25%.
The original agreement was struck after Trump completed a round of golf at his Turnberry resort in Scotland.
Meanwhile, his wider tariff policy continues to face legal scrutiny in US courts.
On Thursday, the US Court of International Trade ruled that the administration’s 10% global tariff was not justified under the cited trade law.
The measure, introduced on 24 February under Section 122 of the 1974 Trade Act, was intended as a temporary response to what the administration described as “balance of payments deficits”.
However, the court found that the legal basis was not appropriate for the circumstances presented by the administration.
While the ruling currently applies only to importers involved in the case, it could encourage further legal challenges and potentially weaken the broader tariff regime.
