Trump Threatens Higher Tariffs on EU if Trade Talks Fail

United States President, Donald Trump, has threatened to impose “much higher” tariffs on the European Union if the bloc fails to remove its levies on American goods before July 4, escalating fresh tensions in transatlantic trade relations.

Trump issued the warning after a phone conversation with European Commission President Ursula von der Leyen, stating that the EU must agree to zero tariffs on U.S. exports or face steep economic consequences.

“I agreed to give her until our Country’s 250th Birthday or, unfortunately, their Tariffs would immediately jump to much higher levels,” Trump said.

In response, von der Leyen said the European Union was making “good progress towards tariff reduction” ahead of the deadline, while reaffirming commitment to ongoing negotiations between both sides.

The tariff dispute comes amid renewed uncertainty over a trade agreement reached last year between Washington and Brussels, which initially proposed a 15 per cent tariff on EU exports to the United States, while Trump had earlier pushed for a 30 per cent levy on European goods.

Although the deal received conditional backing from the European Parliament in March, lawmakers inserted safeguards requiring assurances that the United States would also honour its commitments, particularly concerning steel and aluminium exemptions.

Under the proposed arrangement, EU legislators insisted they would only accept zero tariffs on U.S. goods if European exports made with steel and aluminium were excluded from Trump’s global 50 per cent tariffs on the metals.

Despite parliamentary progress, final approval still depends on agreement from all 27 EU member states, while further negotiations are expected to continue later this month in Strasbourg.

Ahead of Trump’s latest comments, European Parliament chief negotiator Bernd Lange said discussions were progressing but warned that “there is still some way to go.”

However, tensions were further complicated hours after Trump’s threat when a United States trade court ruled that his latest 10 per cent global tariffs were not justified under U.S. trade law, potentially opening the door to further legal challenges.

The court ruling, though limited in scope, questioned the legal basis used by the Trump administration under Section 122 of the 1974 Trade Act, which allows temporary tariffs to address balance of payments deficits.

Trump had previously introduced the sweeping 10 per cent levy in February, following earlier legal and political disputes over his so-called “freedom day” tariffs.

While the court decision does not immediately block the tariffs nationwide, it applies to import duties involving two companies and could encourage wider legal opposition.

With negotiations ongoing and legal uncertainty mounting, analysts say the dispute signals a renewed phase of economic friction between the United States and the European Union.

Dangote Unveils Plan for 20,000MW Power Project

Africa’s richest man, Aliko Dangote, has announced plans to build a 20,000-megawatt power project, marking a major expansion of his industrial interests beyond oil refining, cement and fertiliser production.

Dangote disclosed the plan during an interview with Makhtar Diop, managing director of the International Finance Corporation, saying the project forms part of efforts to address Africa’s persistent energy deficit.

“We are now going into power… 20,000 megawatts,” he said, adding that the continent’s most urgent needs remain energy, fertilisers and industrial inputs.

Although he did not provide details on financing or implementation timelines, the proposed project, if realised, would significantly transform Nigeria’s struggling power sector, where generation remains inconsistent despite an installed capacity of about 13,000MW.

Dangote said Africa’s development priorities are clear, stressing that “the needs of Africa are petroleum products and fertilisers.”

According to him, his conglomerate is also expanding aggressively in fertiliser production and related industrial ventures.

“Today, in about two and a half years, we will be the largest fertiliser company in the world. We are putting up 12 million tons of urea. We are opening up mines of potash and phosphate in Congo and Brazil. We are building the biggest deep-sea port with an 18-meter draft. We are doing LNG,” he said.

The billionaire industrialist added that the expansion drive is being supported by stronger cash flows and improved financial flexibility within his business empire.

“We are now actually free of assets, and we can actually raise more money. Our cash flow now is very, very strong,” he said.

The announcement comes amid the ongoing expansion of the Dangote Refinery, which is currently being scaled up toward a capacity of 1.4 million barrels per day, further cementing its position as one of the largest refining facilities in the world.

Dangote Plans 650,000bpd Refinery in East Africa, Seeks Regional Backing

Africa’s richest man, Aliko Dangote, has unveiled plans to establish a 650,000 barrels-per-day refinery in East Africa, in a move aimed at expanding his refining footprint beyond Nigeria and reducing the continent’s dependence on imported petroleum products.

Dangote made the disclosure on Thursday during a presidential panel at the Africa We Build Summit in Nairobi, organised by the Africa Finance Corporation, where he called for the support of East African governments to replicate the scale of his Lagos-based refinery.

He said his group was ready to deliver a similar project in the region if the necessary backing is provided.

“I can give commitment to the presidents here today that if they support the refinery, we will build the identical one that we have in Nigeria, a 650,000 barrels-per-day refinery. The discussions are still early, but it will work. There is nothing that can stop it,” Dangote said.

The proposal comes amid ongoing discussions involving Kenya, Uganda, and Tanzania to develop a joint refining hub in the port city of Tanga, which is expected to process crude oil from across the region, including supplies from the Democratic Republic of Congo and South Sudan.

Dangote expressed confidence in the feasibility of the project, citing his experience in delivering the 650,000bpd refinery in Lagos, widely regarded as Africa’s largest.

He further revealed that expansion works had already commenced in Nigeria to scale up refining capacity to 1.4 million barrels per day.

“We have already started piling for the expansion. We are building it to a scale of 1.4 million barrels per day. It will be the largest refinery globally,” he said, adding that the development would account for about 10 per cent of the United States’ refining capacity alongside significant petrochemical output.

The billionaire industrialist stressed the need for Africa to prioritise industrial self-sufficiency, warning that reliance on imports exposes economies to global price shocks.

“Look at what is happening today. If not for the local production of polypropylene in Nigeria, many businesses would have collapsed. In just 45 days, the price jumped from about $900 per tonne to nearly $3,000 per tonne. That tells you why we must build local capacity,” he said.

Dangote noted that improved financial capacity across Africa now makes large-scale industrial projects more feasible, compared to previous years when funding constraints posed major challenges.

“There was a time in Nigeria when interest rates were as high as 44 per cent. We had to rely on international institutions to raise funds for early projects. Today, the landscape has changed significantly,” he added.

He also disclosed plans to open up ownership of the refinery business to African investors, promising dollar-denominated returns.

“We want all Africans to invest. This is a continental asset, and we will be paying dividends in dollars,” he said.

On project timelines, Dangote said the proposed East African refinery could be delivered within four to five years once agreements are finalised with participating governments.

“My commitment is that if we agree with three or four governments in the region, we will lead the process and ensure that the refinery is built within the next four or five years,” he stated.

Earlier, William Ruto confirmed that talks were ongoing with Dangote and regional stakeholders on establishing the refinery in Tanga.

Dangote also announced plans to establish about 20 fertiliser blending plants across Africa by 2028, further expanding his industrial investments on the continent.

Energy experts say the proposed refinery, if realised, could significantly reshape Africa’s fuel supply chain, reduce import dependence, and strengthen regional energy security.