President Donald Trump announced Thursday that the European Union must fulfill the terms of a trade deal agreed last year by July 4 or face sharply higher U.S. tariffs on its exports.

Trump made the statement after a phone call with European Commission President Ursula von der Leyen. "I’ve been waiting patiently for the EU to fulfill their side of the Historic Trade Deal we agreed in Turnberry, Scotland, the largest Trade Deal, ever!" Trump said. He added that the EU promised to cut its tariffs to zero on U.S. goods and that he would give the bloc until America's 250th Independence Day, July 4, to comply, or "their Tariffs would immediately jump to much higher levels."

The Turnberry agreement, reached on July 27, 2025, aims to balance transatlantic trade imbalances. Under its terms, the EU would eliminate all tariffs on U.S. industrial goods, while the United States would impose a 15% tariff on EU autos and auto parts, pharmaceuticals, and semiconductors. Sectoral tariffs on steel, aluminum, and copper would remain at 50%. The deal also includes EU quotas for U.S. products, $600 billion in EU investments in the U.S. over Trump's term, and $750 billion in U.S. energy purchases by 2028.

Ratification of the deal on the EU side requires approval by the European Parliament and member states. Lawmakers have repeatedly delayed votes, suspending the process in January 2026 over Trump's threats related to Greenland and again in February after a U.S. Supreme Court ruling on tariffs. Recent internal EU talks failed to finalize implementation legislation, with the next round set for May 19.

Trump has issued prior tariff threats, including a planned 25% levy on EU cars and trucks that he had signaled might take effect this week before extending the deadline. U.S. Trade Representative Jamieson Greer recently expressed confidence that the EU would uphold its commitments.

The European Commission has urged the U.S. to adhere to the agreed tariff levels and indicated a desire to adopt key parts of the deal by July. No immediate response to Thursday's announcement emerged from Brussels.

Past Trump tariff warnings have rattled European markets, particularly automakers like BMW, Mercedes-Benz, and Volkswagen, with stocks declining amid uncertainty. The latest ultimatum revives tensions in a relationship marked by repeated negotiations and pauses on duties.