Trump says giving EU until July 4 to fulfill trade deal or will raise tariffs
Finance

Trump says giving EU until July 4 to fulfill trade deal or will raise tariffs

Published by Global Banking & Finance Review

Posted on May 7, 2026

2 min read

· Last updated: May 7, 2026

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Trump says giving EU until July 4 to fulfill trade deal or will raise tariffs

Trump's Ultimatum on EU Trade Deal and Tariffs

Background of the Trade Deal

WASHINGTON, May 7 (Reuters) - U.S. President Donald Trump said he had a "great call" with European Commission President Ursula von der Leyen on Thursday and would give the EU until July 4 to fulfill its side of the trade deal before hiking U.S. tariffs to much higher levels.

Details of the Agreement

"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!" Trump said in a post on Truth Social.

Tariff Commitments and Deadlines

"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."

Potential Tariff Increases

Trump on Friday had threatened to increase tariffs on EU cars and trucks to 25% this ​week, from 15% currently, because the EU was not complying with the terms of a deal struck in Scotland last July.

Other Topics Discussed

Iran Nuclear Issue

The two leaders also discussed Iran, Trump said, and agreed that Tehran can never have a nuclear weapon.

(Reporting by Ismail Shakil, Bhargav Acharya and Christian Martinez; Writing by Daphne Psaledakis; Editing by Doina Chiacu)

Key Takeaways

  • Trump is enforcing the Turnberry trade deal’s terms; he warns of escalating tariffs if the EU doesn’t comply by July 4.
  • The existing agreement from July 27, 2025 capped U.S. tariffs at 15% in exchange for increased EU investment—but Trump views the EU as dragging their feet.
  • Recent threats include raising auto tariffs to 25%, signaling renewed tensions and uncertainty over implementation.

Frequently Asked Questions

What deadline did Trump give the EU to fulfill the trade deal?
Trump set a July 4 deadline for the EU to fulfill its side of the trade deal.
What action did Trump threaten if the EU does not comply?
He threatened to raise US tariffs on the EU to much higher levels.
Who did Trump speak with regarding the EU trade deal?
Trump spoke with European Commission President Ursula von der Leyen.
Which sector does this potential tariff hike impact?
It impacts trade relations and financial markets involving the US and the EU.

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