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Announcing a phone call with the EU Commission President, '25% tariff hike on passenger cars etc.' postponed
On the 7th (local time), US President Donald Trump threatened the European Union (EU) that if it does not implement the previously concluded trade agreement by July 4, the 250th anniversary of the founding and independence of the United States, higher tariffs would be imposed.
The previously announced increase in tariffs on EU-made automobiles, which was to be implemented this week, is thus understood to have been postponed.
In a post on the social media platform Truth Social, President Trump stated that he had a "great" phone call with EU Commission President Ursula von der Leyen today, adding, "The EU has promised to fulfill its part as agreed and reduce tariffs (to the US) to 0%."
He continued, "I agreed to give her until our country's 250th founding day (July 4), otherwise, unfortunately, their tariffs will immediately be raised to a much higher level."
President Trump had previously warned on the 1st that he would increase tariffs on EU-made passenger cars and trucks from the existing 15% to 25% this week, citing the EU's 'non-compliance with the trade agreement.' However, as a result of today's phone call between the leaders, it is understood that he postponed this and extended the deadline by about two months, pressuring the EU to implement the trade agreement.
Ultimately, if the trade agreement approval by EU member states is not completed by July 4, the tariff rate will be increased.
Earlier, President Trump and President von der Leyen held a summit in Turnberry, Scotland, on July 27 last year and announced the conclusion of trade negotiations.
At that time, both sides agreed that the EU would purchase US energy and military equipment worth $750 billion and add an additional $600 billion to the US. In return, the US would uniformly lower reciprocal tariffs on the EU to 15% and reduce item-specific tariffs imposed on automobiles, etc., to the same level.
However, the European Parliament conditionally approved the trade agreement with the US only in March, and as the approval of all member states has not yet been finalized, the agreement between the two sides has not yet officially entered into force.
In addition, the fact that major North Atlantic Treaty Organization (NATO) member states virtually refused the US's request for help during the Iran war was cited as the background for President Trump's threat to increase tariffs on passenger cars and trucks.
In his post today, President Trump stated that he discussed "various topics, including being in complete agreement that Iran should never possess nuclear weapons" with President von der Leyen.
He added, "We also agreed that a regime that murders its own people cannot be allowed to control bombs that could kill millions."
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