'A deal is a deal': Von der Leyen hits back at Trump's latest tariff threat

Key Points:

• Ursula von der Leyen responded to Donald Trump's threat to raise US tariffs on EU-made cars from 15% to 25%, emphasizing that the US is limited by an agreed cap preventing tariff increases beyond 15%.
• She reaffirmed the EU's commitment to the existing trade deal with the US, which aims for mutual prosperity, common rules, and reliability, and hinted at possible EU retaliation if the deal is violated.
• The EU is in the final stages of implementing legislation to eliminate tariffs on many American products, though the US has yet to align with the agreed 15% tariff ceiling on EU goods.
• European leaders, including the European Council president António Costa, fully support the Commission’s efforts to address the tariff dispute and have sought clarity from Washington on the rationale behind Trump’s tariff threat.
• EU Trade Commissioner Maroš Šefčovič is scheduled to meet with the US Trade Representative during a G7 summit to discuss the tariff issue, amid speculation linking the threat to recent German Chancellor Friedrich Merz’s comments on US-Iran relations, which Merz has denied.