President Donald Trump has issued a stern ultimatum to the European Union, warning that if the bloc does not eliminate its levies on American goods by July 4, the U.S. will impose significantly higher tariffs. The deadline, which coincides with the 250th anniversary of the United States, follows a conversation between Trump and European Commission President Ursula von der Leyen. While von der Leyen maintains that both sides are making progress toward a resolution, the negotiation process remains stalled following a failure to reach a consensus among EU lawmakers and member states earlier this week.

The proposed trade agreement aims to lower barriers, yet it faces complex conditions. The European Parliament has granted conditional approval, insisting that European steel and aluminum exports must be exempt from broader U.S. metal tariffs as part of any final arrangement. Negotiators are scheduled to meet again in Strasbourg on May 19 to address these outstanding issues. Despite the political pressure, von der Leyen has expressed a continued commitment to finalizing the pact to support businesses and citizens on both sides of the Atlantic.

Simultaneously, the administration’s broader trade agenda is facing judicial scrutiny. A recent ruling by the U.S. Court of International Trade found that the President’s latest 10% global tariffs were not adequately justified under existing trade law. While the court’s decision specifically impacts two importers, it creates a legal opening for further challenges against the administration’s tariff policies. The administration had previously invoked the 1974 Trade Act to justify these measures, but the court indicated that the legal basis provided was insufficient for the stated balance of payments deficits.