Efforts to avert a potential transatlantic trade war will take centre stage on Sunday as European Commission President Ursula von der Leyen meets US President Donald Trump in Scotland.
The meeting is aimed at finalising a trade framework that could set a 15 per cent baseline tariff on most European Union (EU) goods, bringing much-needed clarity for businesses but falling short of the EU’s initial hopes for zero tariffs, reported Reuters.
Trump, currently in Scotland for a combination of golfing and bilateral discussions, described von der Leyen as “a highly respected leader” upon his arrival on Friday evening.
Speaking to reporters, he said he was looking forward to hosting the meeting at his Turnberry golf course and assessed the chances of striking a deal as “50-50”, adding that Brussels “wanted to make a deal very badly.”
Stakes High as Tariff Deadline Nears
The talks come at a crucial juncture. The EU currently faces a web of US tariffs, including 50 per cent on steel and aluminium, 25 per cent on cars and car parts, and a 10 per cent levy on most other exports. Trump has warned that he will raise those rates to 30 per cent from August 1 if no agreement is reached, a move that EU officials say could devastate transatlantic trade. Tariffs on copper and pharmaceuticals are also on the horizon.
For Trump, clinching an EU pact would mark his largest trade deal yet, surpassing the $550 billion accord signed with Japan earlier this week. He has already struck agreements with Britain, Japan, Indonesia, and Vietnam, but his administration has fallen short of the much-hyped “90 deals in 90 days” pledge.
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Negotiators Scramble Ahead of High-Stakes Meeting
US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday for preparatory talks with EU Trade Commissioner Maros Sefcovic ahead of the leaders’ meeting.
“We’re cautiously optimistic that there will be a deal reached,” a senior Trump administration official said anonymously. “But it’s not over till it’s over.”
Should negotiations fail, the EU is ready with counter tariffs on €93 billion ($109 billion) worth of US goods. Diplomats suggest any final arrangement will probably feature a broad 15 per cent tariff on EU goods entering the US, along with maintaining the 50 per cent duty on steel and aluminium.
Trump has been firm on that point, telling reporters there was “not a lot” of flexibility on steel and aluminium duties: “because if I do it for one, I have to do it for all.” Whether Washington will include cars and pharmaceuticals under the 15 per cent tariff remains uncertain, though EU officials remain hopeful the new rate will cover those sectors.
