Trump Gives EU July 4 Deadline After Court Blocks 10% Tariffs

The deadline coincides with the United States’ 250th anniversary and follows a court ruling that invalidated the 10% tariffs Trump imposed worldwide under a 1974 trade law. The tariffs, originally meant to expire at the end of July, will stay in force while the administration appeals the decision.

Trump announced on Truth Social that he has spoken with EU Commission President Ursula von der Leyen and will give the bloc until July 4 to implement the agreement that would reduce most U.S. import tariffs to zero. He warned that failure to comply would trigger “much higher” tariffs on European goods.

Von der Leyen responded that the EU remains fully committed to implementing the deal, describing recent progress as “good” and emphasizing that both sides are working toward ratification. The European Parliament’s trade committee chair, German MEP Bernd Lange, said legislators will act “expeditiously” to honor the spirit and letter of the agreement. EU trade commissioner Maroš Šefčovič noted that the next trilogue talks are scheduled for 19 May, with “considerable progress” already made.

The underlying trade pact, signed in July 2023, set a 15% tariff ceiling on most European exports to the United States. Trump has repeatedly expressed frustration over the pace of EU implementation, threatening to raise duties on EU cars and trucks to 25% if the bloc does not meet its obligations. The European Parliament has twice suspended ratification talks, citing concerns over Trump’s earlier threats to seize Greenland and increase tariffs.

Despite the political friction, the EU’s rotating presidency, currently held by Cyprus, is pushing to keep “positive momentum” in the May negotiations. Member states must still approve the deal before it can take effect, a step that could be accelerated by the looming July 4 deadline.

What it means

The July 4 ultimatum adds pressure on EU lawmakers to finalize the trade agreement before the deadline, or risk a new wave of higher U.S. tariffs that could affect European automotive and steel exports. The court’s ruling on the 10% tariffs limits Trump’s leverage, but the appeal process leaves uncertainty about the temporary rates. Watch for the outcome of the May trilogue talks and any formal EU ratification before the U.S. Independence Day deadline.