Trump demands that the European Union fully implement the trade agreement by July 4 (American Independence Day!). According to him, Brussels must adhere to the agreed terms on trade tariffs and market access. If the EU does not comply, the United States threatens to raise import duties further.
The European automotive industry is particularly under pressure. Trump warned again that the US tariff on European cars could increase to 25 percent. This prospect is causing concern within European governments and in the European Parliament.
The trade deal involves a maximum tariff of 15 percent on most European exports to the United States. In return, the EU would lower its tariffs on American industrial goods and broaden access for certain American agricultural products.
Promotion
Divided
However, within the European Union there is division over how to deal with Trump. Several EU countries and parts of the European Commission want to finalize the agreement quickly to avoid new economic tensions.
At the same time, calls in the European Parliament are growing to add extra protections in the agreement. Negotiators are working on a clause allowing the deal to be temporarily suspended if the United States fails to meet its obligations or unexpectedly imposes new tariffs.
Guarantees
Some parliamentarians argue that recent US threats demonstrate that additional guarantees are necessary. They state that the EU cannot simply rely on verbal commitments as long as new tariff threats continue to arise.
Other politicians warn that further delays increase the risk of a trade war. They fear that tensions between Brussels and Washington will escalate further if negotiations remain stalled. Parliamentary group leader Manfred Weber (from the largest EPP group) threatens to force a prompt decision, if necessary with support from far-right groups.
Frustrations
Previous European-American conflicts continue to influence the talks. Within the EU, frustration remains over earlier American threats, including disputes about Greenland and previous import duties on European products.
A new important EU negotiation round will take place on May 19 between representatives of the European Parliament, the EU member states, and the Commission. This approaches a decisive moment for the future of the trade deal between Brussels and Washington.