Trump sets July 4 deadline for EU trade deal — threatens 'much higher' tariffs on non-compliance

President Donald Trump set a July 4 deadline for the European Union to ratify the trade deal agreed at Turnberry, Scotland in July 2025, threatening to raise tariffs on EU goods to "much higher" levels if the 27-nation bloc fails to comply. The warning, posted to Truth Social late Thursday, came on the same day a U.S. trade court ruled that Trump's existing 10% global baseline tariff was unjustified under U.S. law. (CNBC)

Trump accused the EU of failing to deliver on its side of the Turnberry agreement, which committed Brussels to cutting its tariffs on U.S. goods to zero, while the U.S. maintained 15% tariffs on EU goods. He had previously threatened to raise EU auto tariffs to 25%, and now gave the EU until July 4 — the U.S.'s 250th birthday — to finalize implementation.

"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 wrote. "I agreed to give her until our Country's 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."

EU Commission President Ursula von der Leyen said the bloc remains "fully committed" to implementation and that "good progress is being made towards tariff reduction by early July." The EU Parliament's chief trade negotiator, Bernd Lange, acknowledged progress but warned "there is still some way to go."

The threat came hours before a U.S. trade court ruled that Trump's 10% global tariff violated U.S. law — the second time courts have blocked Trump administration tariff overreach after the Supreme Court blocked wider double-digit tariffs earlier this year.

Market focus is on the July 4 deadline as a potential volatility trigger for European equities and the euro. A breakdown in talks would expose EU exporters — particularly automakers — to dramatically higher levies heading into Q3.

Not investment advice. Verify all figures with primary sources before acting.