On Thursday, US President Donald Trump issued a statement on social media indicating that if the European Union does not approve the trade framework established last year by 4 July, goods from the EU will face higher tariffs.
This statement extends a previously set deadline; last Friday, Trump announced that European automobiles would be subjected to a 25% tariff beginning this week. The President made this updated announcement following a “productive call” with European Commission President Ursula von der Leyen.
Nevertheless, he expressed his disappointment regarding the European Parliament’s failure to finalise the trade agreement reached last year. This delay has been further complicated by a February ruling from the US Supreme Court, which held that the President lacked the legal authority to declare an economic emergency to impose initial tariffs intended to encourage the EU to engage in discussions.
“A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO!” Trump posted. “I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels.”
The post did not clearly indicate whether Trump was suggesting an increase in tariff rates on all EU goods or only on automobiles. His most recent statement suggests a softening of his earlier position on EU automobiles, as he has given the European Parliament additional time to consider the agreement. Under the original framework terms, the United States was set to impose a 15% tariff on most goods imported from the EU. However, following the Supreme Court ruling, the administration has instituted a 10% tariff while investigating trade imbalances and national security concerns, with plans to implement additional tariffs to address any revenue shortfalls.
This article used information from The Associated Press.
