Trump Threatens EU With New Tariffs

Trump Issues EU Tariff Ultimatum Donald Trump has issued an ultimatum to the European Union, demanding ratification of a trade deal by July 4, 2026, or face significantly increased tariffs. This directive follows Trump's expressed dissatisfaction with the pace of the deal's implementation, which was initially agreed upon in July 2025.

The trade agreement, struck between the 27-member EU bloc and the United States, set tariffs on most European goods at 15%. However, the deal requires ratification by EU member states. Trump communicated this deadline to European Commission President Ursula von der Leyen, stating that failure to ratify by the U.S.'s 250th birthday would result in an immediate escalation of tariffs.

This development occurs despite a U.S. Supreme Court ruling in February that found Trump had exceeded his authority in imposing certain tariffs, leading to a temporary 10% duty while his administration seeks alternative measures.

The ruling did not impact sector-specific tariffs, such as those on cars, which were reduced to 15% under the EU agreement. Trump has threatened to raise duties on EU cars and trucks to 25% if the deal is not fully implemented, accusing the bloc of non-compliance.

EU lawmakers provided conditional approval in late March, but the agreement still requires negotiation and sign-off by individual EU states.