US President said on Thursday that imports from the would face “much higher levels” of tariffs if the 27-member bloc does not approve last year’s by July 4.
Trump made the remarks after what he called a “great call” with European Commission President . He also said that the two leaders spoke about Iran and agreed that Tehran must never be allowed to have a nuclear weapon.
Trump’s fresh threat for Europe
After the call with Leyen, Trump expressed frustration over the European Parliament not yet finalising the trade arrangement reached last year.
The matter became more complicated in February, after the US Supreme Court ruled that Trump lacked the legal power to declare an economic emergency to impose the original tariffs that pressured the EU to enter negotiations.
“A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!” Trump said in a post on Truth Social. “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels.”
On Friday, Trump warned that tariffs on EU cars and trucks could be raised to 25% this week from the current 15%, saying the bloc had failed to meet the conditions of the agreement signed in Scotland in July last year.
US-EU trade deal
As part of the original deal, the EU agreed to remove duties on US industrial products in return for a 15% tariff cap on most EU goods, including automobiles. While the US carried out part of its commitments, the EU continued its legislative process.
After the Supreme Court ruling, the US administration imposed a 10% tariff while carrying out investigations into trade imbalances and national security concerns. The move was aimed at introducing fresh tariffs to recover lost revenue.
In late March, European Union lawmakers approved the tariff agreement with Trump, although they also pushed for extra safeguards.
Even after receiving conditional backing from the European Parliament, the agreement still needs to be discussed with EU member states before it can come into effect across the bloc.
With inputs from agencies
