Key insights
- Trump is threatening to raise tariffs on EU goods if they don't fulfill their side of a trade deal by July 4th. This introduces uncertainty and could negatively impact US equities, particularly in sectors reliant on international trade and supply chains, such as autos. The threat of increased tariffs raises concerns about potential retaliatory measures from the EU.
WASHINGTON, May 7 (Reuters) - U.S. President Donald Trump said he had a "great call" with European Commission President Ursula von der Leyen on Thursday and would give the EU until July 4 to fulfill its side of the trade deal before hiking U.S. tariffs to much higher levels.
"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 said in a post on Truth Social.
"A promise was made that the EU would deliver their side of the Deal and, as per Agreement, cut their Tariffs to ZERO! I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels."
Trump on Friday had threatened to increase tariffs on EU cars and trucks to 25% this week, from 15% currently, because the EU was not complying with the terms of a deal struck in Scotland last July.
The two leaders also discussed Iran, Trump said, and agreed that Tehran can never have a nuclear weapon.