U.S. President Donald Trump warned the European Union and Japan to offer better trade terms or face higher tariffs, as the U.S. ramps up pressure ahead of a July 9 deadline when paused tariffs could resume. Speaking aboard Air Force One after an early departure from the G7 summit in Canada, Trump said the EU has yet to propose a “fair deal,” adding, “They’ll either make a good deal or pay whatever we say.”
Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and National Economic Council Director Kevin Hassett remained in Kananaskis, Alberta, to continue trade negotiations with G7 counterparts. Trump skipped meetings with leaders from India, Australia, and Mexico, though he had a “very good” call with Mexican President Claudia Sheinbaum about ongoing trade efforts.
European Commission President Ursula von der Leyen expressed cautious optimism, noting talks are advancing but complex. The EU aims to avoid the return of U.S. tariffs after the 90-day pause expires.
Trump hinted at potential progress with Japan, calling them “tough negotiators,” but reiterated the U.S. could unilaterally set tariffs if necessary. He also renewed his promise to impose pharmaceutical tariffs soon, aiming to bring drug manufacturing back to the U.S. via Section 232 of the Trade Expansion Act.
Trade lawyer Greta Peisch said Trump’s absence may slow progress, as negotiators lack clarity on his final positions. Meanwhile, a limited trade deal with the U.K. was finalized, addressing tariffs on autos and aerospace but leaving steel and aluminum unresolved.
With the “Liberation Day” tariffs set to return soon, Trump appears to be leveraging the looming deadline to extract concessions from major trading partners. Negotiations remain fluid, but pressure is mounting as the clock ticks.