Trump and EU President Discuss Trade Deal Possibilities
President Trump and Ursula von der Leyen, President of the European Commission, have discussed a potential trade deal, estimating a 50% chance of reaching an agreement ahead of their negotiations scheduled for Sunday.
“I think the president is right. We have a 50-50% chance of hitting the deal. It’s all about rebalancing,” she mentioned to reporters at the DJT Ballroom in Trump Turnberry, located on Scotland’s West Coast.
Trump presented the EU with a new trade agreement proposal, setting an August 1 deadline for negotiations, or else facing a 30% tariff. The EU, comprised of 27 countries, engaged in about $1.68 trillion worth of trade with the U.S. last year.
“This is the biggest deal. People don’t realize this is larger than any other,” Trump emphasized before meeting with the EU president.
He pointed out that the agreements with the EU would tackle significant trade issues, but noted, “we aren’t part of it because drugs need to be manufactured in the U.S.”
An hour later, Trump hinted at the possibility of an agreement being made before the August 1 deadline, mentioning a few fixed points—though he didn’t specify what those were.
He shared some general frustrations regarding European trade practices, especially in the auto and agricultural sectors, but it was unclear if these were among the issues being negotiated.
“We don’t sell cars to Europe. It’s really tough for farmers,” he remarked. “People don’t realize how challenging this situation is. If you want to sell a car in Europe, it’s complicated for us.” He added, “Ultimately, we’re trying to keep everyone satisfied.”
Von der Leyen, who traveled to Scotland for a four-day trip to meet Trump, described him as a skilled negotiator and dealmaker, to which Trump replied, “And fair.”
In a light moment with reporters, Trump insisted he wouldn’t push back the August 1 deadline before new “liberation day” tariffs kick in, a date he’s shifted previously.
There are rumors that Trump is considering a 15% baseline tariff on the EU, which would alter his original “liberation day” approach significantly.
Many in Europe hope he’ll lower this to the 10% baseline that he has applied to most U.S. imports.
Responding to whether he might raise the tariff above 15%, Trump simply said, “No.”
So far, he has decreased tariffs with the UK, Vietnam, Japan, Indonesia, and the Philippines but mentioned that his team recently halted another deal, without specifying which country was involved.
He continues to enforce various tariffs, including a 25% levy on imports from Canada and Mexico, which do not comply with the US-Mexico-Canada Agreement, affecting automobiles, aluminum, and steel. He recently contemplated increasing tariffs on Canada and Mexico.
Additionally, Trump has established a tariff pause with China, giving them until August 12 to reach broader agreements.
Earlier this month, he issued an ultimatum to Moscow, stating that they need to reach peace agreements concerning Ukraine within 50 days or face 100% secondary tariffs on Russian energy.
