Storm Not Over, Trump Prepares to Hit Europe with "Insane" Tariffs on 4 July

Relations between the United States (US) and the European Union (EU) are now on the brink after Donald Trump issued a serious threat. The 47th President of the United States has given the European Union a deadline until 4 July 2026 to ratify a trade agreement with the US, or they will face much higher tariffs.

Citing a report from The Guardian on Thursday (7/5/2026), Trump conveyed the threat after European officials failed to reach a full agreement on the trade pact that has been under discussion. This tension arises just as the United States prepares to celebrate its 250th anniversary.

Trump stated that he had spoken directly with the Head of the European Union, Ursula von der Leyen, about the issue via a post on his social media platform, Truth Social.

“I agreed to give her until our country’s 250th Birthday or, unfortunately, their tariffs will soon skyrocket to much higher levels,” Trump wrote in the post.

In response to the pressure, Von der Leyen issued a statement on Thursday that the bloc of the Blue Continent has made good progress towards ratifying the agreement in early July.

“We remain fully committed, on both sides, to its implementation,” Von der Leyen said in her statement via her X social media account.

The EU bloc, comprising 27 countries, and the US actually reached an agreement last July, which set tariffs on most European goods at 15%. However, Trump is dissatisfied with the slow pace of implementing the agreement by the European side.

The situation has become more complicated after the US Supreme Court ruled in February that Trump had exceeded his authority in imposing a series of broad tariffs, including against the European Union. Since then, the Trump administration has imposed temporary import duties of 10%, while his government continues to seek more permanent ways to rebuild its trade agenda.

Nevertheless, the court decision did not affect tariffs on specific sectors such as automotive. Under the agreement with the European Union, tariffs on cars have actually been reduced to 15%.

Because the agreement is still awaiting approval from EU member states, Trump vowed last week to raise import duties on cars and trucks from the European Union to 25%. He accused the bloc of failing to fulfil its part of the deal.

Cyprus, which currently holds the rotating presidency of the Council of the European Union, expressed its desire to maintain positive momentum in talks with European Parliament members on 19 May. However, Trump appears to have lost patience with the bureaucratic process in Europe.

“I have been waiting patiently for the EU to fulfil their part of the Historic Trade Deal we agreed to in Turnberry, Scotland, the biggest trade deal ever!” Trump wrote.

Trump reiterated that promises had been made by the European side to promptly complete the administrative process. He demanded that tariffs be drastically reduced in line with their initial discussions.

“A promise was made that the EU would deliver their part of the Deal and, per the Agreement, cut their Tariffs to ZERO!” Trump emphasised.

At the end of March, EU policymakers had actually given the green light to the tariff agreement with Trump. However, those legislators also sought additional protection guarantees for their side.

Although it has received conditional approval from the European Parliament, the agreement still needs further negotiation with individual EU member states before it can be fully implemented by the bloc collectively. Now, the world awaits whether the European Union can meet Trump’s 4 July deadline to avoid a more destructive trade war.