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Trump sets July 4 ultimatum for EU on trade pact

Trump sets July 4 ultimatum for EU on trade pact

Summary

President Donald Trump said he had a good phone call with European Commission President Ursula von der Leyen and gave the European Union until July 4 to approve a trade deal. If the EU does not finalize the agreement by then, Trump warned he will raise U.S. tariffs on European goods to higher levels.

Key Facts

  • President Trump set a July 4 deadline for the EU to approve a trade agreement reached last year.
  • If the EU fails to finalize the deal, tariffs on European goods will increase sharply.
  • The original deal proposed cutting EU tariffs to zero and setting U.S. tariffs at 15% on most EU imports.
  • A recent U.S. Supreme Court ruling limited Trump's legal power to impose tariffs under an economic emergency claim.
  • So far, the U.S. has applied a 10% tariff on many EU goods while reviewing trade concerns.
  • Trump and von der Leyen spoke positively about the situation on the phone before the deadline was announced.
  • It is unclear whether the tariff increases will apply to all EU goods or just automobiles.
  • The July 4 deadline coincides with the U.S. country’s 250th birthday.
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