Following a conversation with Ursula von der Leyen on Thursday evening, Donald Trump postponed his warning about «much higher» tariffs on the European Union until 4 July. Von der Leyen described the situation as «good progress» towards execution.
The European Union has been given until 4 July to fully apply its trade agreement with the United States or face «much higher tariffs», US President Donald Trump declared on Thursday after a phone call with European Commission President Ursula von der Leyen.
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This statement, emerging amid escalating tensions between the EU and the US, delays a threat Trump issued last Friday when he proposed increasing tariffs on EU-made vehicles from 15% to 25% sometime this week.
«I’ve been waiting patiently for the EU to honor their commitments under the historic trade deal we agreed at Turnberry, Scotland– the largest trade deal ever! A guarantee was given that the EU would deliver their portion of the deal and, as agreed, reduce their tariffs to zero!» the US president posted on social media.
Referencing the US Independence Day, known as the Fourth of July, he added: «I agreed to grant her until our nation’s 250th Birthday or, regrettably, their tariffs would instantly rise to significantly higher rates.»
Under an uneven deal reached last summer, the EU pledged to eliminate remaining tariffs on US products. In return, the US committed to a comprehensive 15% tariff on the majority of EU goods that avoided additional cumulative duties.
The European Parliament and member states are currently discussing legislation necessary to allow tariff removals. Negotiations stalled on Wednesday night, but lawmakers noted advancements towards a tentative solution as of 19 May.
The primary issue concerns lawmakers insisting on including protections against breaches if Trump violates the shared agreement or threatens the union’s territorial sovereignty, as demonstrated earlier this year when he menaced to forcibly take Greenland from Denmark.
Member states prefer adhering to the original text, which omitted such safeguards, aiming to implement the agreement swiftly.
However, Trump’s threat to raise tariffs from 15% to 25% has strengthened opponents of the pact who doubt the US president’s commitment and anticipate demands for additional concessions from Europe. The White House has repeatedly targeted the bloc’s digital and environmental standards, advocating for their removal.
In a separate social media post, von der Leyen expressed confidence that the pending legislation would pass before the deadline.
«We remain fully committed on both sides to enforcing the agreement. Substantial progress is being made towards tariff reductions by early July,» she stated.
Earlier this week, she responded firmly to Trump’s abrupt threat by emphasizing that «a deal is a deal» and reaffirming the bloc’s readiness for all outcomes.
Von der Leyen also reminded Trump that the 15% all-inclusive tariff ceiling in the trade deal prevents unilateral increases in US tariffs.
Thursday’s phone conversation, which Trump described as «great», seems to have temporarily reduced tensions. Most officials and diplomats in Brussels did not anticipate the 25% tariff would come into effect, considering Trump’s history of issuing threats and then retracting them.
The two leaders additionally discussed the conflict in the Middle East.
«We are completely united in ensuring that Iran can never acquire a nuclear weapon. We agreed that a regime that murders its own citizens cannot be entrusted with a bomb capable of killing millions,» Trump said.
Von der Leyen supported the message, stating, «Recent developments have clearly illustrated that the threats to regional stability and global security are too significant.»
This article has been updated with additional details.