Trump hits EU with ultimatum and threatens auto tariffs
Donald Trump, President of the US (photo: Getty Images)
Donald Trump has set a deadline for the European Union to fulfill a trade agreement. Brussels has until July 4, and if the demands are ignored, Washington will impose much higher tariffs on European goods, including cars, according to Reuters.
US President Donald Trump has chosen a symbolic date – the 250th anniversary of US independence. Trump announced this after negotiations with Ursula von der Leyen. The leaders also discussed Iran's nuclear program. They agreed that Tehran will never obtain such weapons.
Last Friday, Trump already announced an increase in tariffs on cars to 25%, although the parties had previously agreed on 15%. The reason is simple: the European Union is not complying with the terms of the Scottish agreements. These agreements were signed back in July of last year, the agency notes.
In his social network Truth Social, Trump expressed his dissatisfaction:
"I’ve been waiting patiently for the EU to fulfill their side of the Historic Trade Deal we agreed in Turnberry, Scotland, the largest Trade Deal, ever!
A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO! I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels," the US President emphasized.
What is delaying the implementation of the agreement
The problem lies in the legislative sphere, as the European Parliament is slowly advancing the necessary documents. The agreement provides for the complete elimination of tariffs on industrial goods from the US. Duty-free quotas for American seafood and agricultural products are also to be introduced.
Ursula von der Leyen reaffirmed her commitment to the agreement. She noted that the parties are actively working. However, within the EU itself, discussions are ongoing, and some countries are demanding strict guarantees.
More than just cars
Due to the delays in the process, Washington is losing patience. US Trade Representative Jamieson Greer believes that the EU has already missed all deadlines. He hinted at additional restrictions, meaning that cars could be just the beginning of the sanctions list.
"The autos is just one element. There are other elements to the deal where the United States remains in full compliance in contrast to where the Europeans have been for many months," Greer said.
The next round of negotiations will take place on May 19, where EU negotiators will try to find a compromise.
What preceded Trump's statement
Just a week ago, Trump promised to impose 25% tariffs on European cars. However, he postponed that plan, now known to be until July 4.
In addition, Trump recently declared war on foreign drug manufacturers. In particular, his administration is imposing increased tariffs on imported medicines to force companies to move their factories to the US.
The EU reacted seriously to Trump's threats. The Lithuanian Finance Minister called on the European Union to continue negotiations with the United States while preparing countermeasures.
