WASHINGTON: US President Donald Trump has warned the European Union that Washington could impose significantly higher tariffs on European goods, including automobiles, if the bloc does not implement commitments under a previously agreed trade deal by July 4.

Trump said he discussed the issue during a phone call with European Commission President Ursula von der Leyen and decided to extend the deadline for compliance until the US Independence Day holiday.

In a post on Truth Social, Trump said the European Union had failed to fully implement terms of the trade agreement reached in Turnberry, Scotland, last year. The agreement included plans for the EU to reduce tariffs on US industrial goods to zero and provide duty-free quotas for selected American agricultural and seafood products.

Trump said the United States had fulfilled its obligations under the agreement, while implementation measures in Europe had moved slowly through the European Parliament.

Last week, Trump announced plans to increase tariffs on EU vehicles to 25 percent from the previously agreed 15 percent, citing delays in the implementation process.

European Commission President Ursula von der Leyen confirmed discussions with Trump and said both sides remain committed to implementing the trade agreement. She also said progress was being made toward tariff reductions by early July.

According to EU officials, negotiations continue as lawmakers debate safeguard measures linked to the deal. Some members of the European Parliament are seeking stronger legal protections, including conditions that would suspend tariff concessions if the US does not fully comply with the agreement.

Bernd Lange, chair of the European Parliament’s trade committee, said progress had been made but noted that negotiations were still ongoing among the bloc’s 27 member states.

The next round of talks between EU and US negotiators is scheduled for May 19.

US Trade Representative Jamieson Greer also said this week that the EU’s implementation timeline was already overdue and suggested Washington could consider additional measures beyond higher automobile tariffs if compliance issues continue.

During their discussion, Trump and von der Leyen also addressed Iran, agreeing that Tehran should not possess nuclear weapons.

Also read: Trump threatens 100% tariffs on Canada over potential China trade deal