Trump gives EU ultimatum deadline to approve trade deal with US
Donald Trump has threatened "much higher" tariffs on the European Union (EU) by July 4 if the bloc fails to drop its levies on the US to zero. After a phone call with European Commission President Ursula von der Leyen, Trump said he agreed to give her until "our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels". A US trade court ruled Trump's latest 10% global tariffs were not justified under US trade law.
Ursula von der Leyen said the bloc was making "good progress towards tariff reduction" ahead of Trump's deadline. A trade deal was struck by von der Leyen and Trump in July last year, but progress on enacting it stumbled on Wednesday after talks between EU lawmakers and governments ended without an agreement. Under the agreement, US tariffs on EU exports would be 15%. Trump had threatened tariffs of 30% on European goods. The European Parliament gave conditional approval in March, accepting zero tariffs on US goods only if European goods made with steel and aluminium were excluded from Trump's 50% tariff on those metal products.
Negotiators are set to meet for another round of talks on May 19 in Strasbourg. Last week, Trump accused the EU of "not complying with our fully agreed to trade deal" and said he would increase tariffs on trucks and cars to 25%. Trump introduced the 10% levy on February 24 after the US Supreme Court decision struck down his so-called "freedom day" tariffs imposed last year. The 10% levy is set to last until late July. The judgment applies to importer tariffs for two companies, but paves the way for further court challenges.
Quick Summary
Donald Trump has given the EU an ultimatum regarding trade - demanding they drop levies on the US. Failure to meet the deadline could have significant economic repercussions - but for whom?
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