U.S. President Donald Trump has issued a stark warning to the European Union, stating they must either agree to a “good deal” on trade or face significant financial repercussions. His remarks came just hours after his initial formal meeting with European Commission President Ursula von der Leyen.
“We’re talking, but I don’t feel that they’re offering a fair deal yet,” Trump told reporters aboard Air Force One, en route from the G7 Summit in Canada, which he left early on Monday. He asserted, “They’re either going to make a good deal, or they’ll just pay whatever we say they have to pay,” reiterating his long-held belief that the EU was established to “hurt the United States on trade.”
Trade Tensions and Looming Tariffs
The transatlantic partners are currently engaged in negotiations to preserve their €1.7 trillion trade relationship. Should they fail to reach an agreement by a July 8 deadline, Trump’s current 10 percent universal tariff could dramatically escalate to 50 percent, a level that would severely impact EU exports. Additionally, EU steel, aluminum, and car exports are already subject to 50 percent tariffs.
On Monday, Trump held his first bilateral meeting with von der Leyen, the EU’s chief trade negotiator for its 27 member states, at the summit in the Canadian Rockies. Following the meeting, von der Leyen stated in a social media post that she and Trump had instructed their teams “to accelerate their work to strike a good and fair deal. Let’s get it done.”
Earlier on Monday, the Commission dismissed media speculation that the EU was prepared to accept the 10 percent U.S. baseline tariff, similar to a recent U.K.-U.S. trade agreement. Chief spokesperson Paula Pinho denied these reports, calling them “speculative and do not reflect the current state of discussions.” Pinho further told POLITICO, “Negotiations are ongoing, and no agreement has been reached at this stage. From the start, the EU has objected to unjustified and illegal U.S. tariffs.”
