U.S. President Donald Trump has given the European Union a two month deadline to implement a trade agreement with Washington, warning that tariffs could rise sharply if the bloc does not move faster. According to Politico, Trump said the deadline was discussed during a phone call with European Commission President Ursula von der Leyen.
The president said the EU has until July 4, which marks America’s 250th birthday, to make progress on the agreement. If not, he warned that tariffs on European goods could be raised to much higher levels. The renewed threat comes as his administration continues to pressure European leaders to follow through on the trade arrangement reached last year in Scotland.
The deal, known as the Turnberry Accord, was agreed to after talks between Trump and von der Leyen at a Trump owned golf resort in Scotland. Under the arrangement, the EU was expected to remove tariffs on U.S. industrial goods and increase investment in American energy and other sectors. In return, the U.S. would maintain lower tariff rates on European products.
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Von der Leyen said the call with Trump also focused on the war in the Middle East, while confirming that trade was discussed. She said both sides remain committed to implementing the agreement and that progress is being made toward tariff reductions by early July.
U.S. Trade Representative Jamieson Greer said Washington is frustrated by the pace of European action. According to Politico, Greer said the EU has started work on tariff related changes but has not yet moved on several non tariff barriers included in the original agreement. He argued that the United States has largely complied with the deal for months while Europe has not done enough.
Trump has also threatened to raise tariffs on European automobiles to 25 percent, a move that would place heavy pressure on Germany and the wider European auto industry. The threat comes amid broader tensions between Washington and European leaders over trade, Iran, and global security policy.
The situation adds another layer of uncertainty to transatlantic relations at a time when global markets are already watching developments in the Middle East and energy supply chains. If the dispute escalates, businesses on both sides of the Atlantic could face higher costs, weaker investment confidence, and renewed pressure on consumers.
