Trump Urges EU to Zero Tariffs, July 4 Deadline Decisive
US President Donald Trump warned the European Union that implementation of the trade deal reached last year in Turnberry, Scotland, must be met by July 4—coinciding with the 250th anniversary of the United States—or Washington will raise tariffs.
Trump said the deal includes an EU commitment to reduce tariffs to zero on certain categories, while the US will cap tariffs on most products at around 15%. According to Trump, failure to fulfill these commitments will trigger a surge in tariffs, with a focus, he mentioned, on vehicles (cars and trucks) from Europe.
This pressure comes as the EU's legislative process to activate the deal remains incomplete. Several reports indicate that discussions between legislators and member governments ended without an agreement, leaving the supporting regulations needed to implement the tariff commitments pending.
In addition to trade issues, Trump said he also spoke with European Commission President Ursula von der Leyen about Iran, including their shared position that Tehran should not possess nuclear weapons.
For the market, the July 4th deadline places a new "risk premium" on transatlantic trade relations: the longer ratification is delayed, the greater the likelihood that tariffs will be used as a tool of pressure. Key variables to monitor are the progress of EU legislation, the details of the scope of the US's intended tariffs (whether broad or sector-specific), and the European Commission's official response to the threat of vehicle tariffs. (Arl)
Source: Newsmaker.id
