Trump signals EU trade deal edging closer in crunch Scotland talks
Trump and von der Leyen announce US-EU trade deal
(30 minutes later)
US president says chance of reaching agreement is 50/50 as talks with Ursula von der Leyen begin
Agreement includes 15% baseline tariff for most EU exports to US after deal reached at Scotland crunch talks
Donald Trump has signalled a US trade deal with the EU is moving closer as the president meets with the head of the European Commission, Ursula von der Leyen, for crunch talks in Scotland.
Donald Trump has announced a tariff deal with the EU to end four months of difficult negotiations between Washington and Brussels and the prospect of a damaging transatlantic trade war.
The US president said he would like to reach a deal with Brussels but said that “three or four sticking points” remained as he put the chances of progress being made at “50-50”.
The European Commission chief, Ursula von der Leyen, described it as “a big deal, a huge deal” that would bring “stability” and “predictability”. “The two biggest economies should have a good trade flow,” she said.
In a rambling press conference alongside von der Leyen, arranged at his Turnberry golf resort before a high-stakes meeting between the leaders, Trump said a deal could be done “within an hour” if the obstacles could be overcome.
“It solves a lot of stuff and was a great decision,” said Trump.
“When we come together this will be the biggest deal, if it happens, and it could happen. Should happen,” he said.
However, saying he was “not in a good mood”, the president confirmed anything less than a 15% baseline tariff on EU goods entering the US market would not be accepted.
“We have three or four sticking points I’d rather not get in. We’ll be discussing them, but I think the main sticking point is fairness,” he said, once again rating the chance of a deal at 50-50.
“We’ve had a hard time with trade with Europe, very hard time, and I’d like to see it resolved,” he said.
But in what could be seen as an upbeat note, he added: “We have a good chance of getting it resolved. We’ll probably know in about an hour. Shouldn’t take that long.”
Sitting next to von der Leyen, who appeared composed but who Trump spoke over on several occasions, the US president also took aim at European migration and wind turbines.
Agreeing that chance of a deal stood at s 50-50, von der Leyen told the US president: “Now it’s on us. You’re known as a tough negotiator and dealmaker. What is in front of us, if we’re successful, I think it would be the biggest deal each of us has ever struck.”
A high-powered EU delegationflew into Scotland earlier on Sunday nervously anticipating a breakthrough in talks.
This included the EU trade commissioner, Maroš Šefčovič, and a team of aides alongside von der Leyen. The US commerce secretary, Howard Lutnick, and the trade representative, Jamieson Greer, with the presence of senior figures from both sides raising hopes for a deal.
The talks in Scotland will be closely scrutinised by jittery global investors before financial markets open on Monday morning, amid hopes that a deal could help to limit the damage on the world economy.
Trump also signalled progress could be made in trade talks with China, saying “we’re very close”. A report by the South China Morning Post on Sunday suggested Washington and Beijing were preparing to announce a 90-day extension to a pause in tariffs to allow for continuing negotiations, before a 12 August deadline.
Sign up to Business Today
Sign up to Business Today
Get set for the working day – we'll point you to all the business news and analysis you need every morning
Get set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotion
after newsletter promotion
Trump, Lutnick and Greer were due to meet a team of five from the EU including von der Leyen; Šefčovič; Björn Seibert, von der Leyen’s head of cabinet; Sabine Weyand, a key player in the Brexit negotiations and now the director general of the EU’s trade commission; and Tomas Baert, a member of von der Leyen’s cabinet who has taken a lead role in talks.
The deal involves a 15% baseline tariff for most EU exports to the US, limiting a higher border tax charge on EU goods sold to the US market. However, it is higher than before Trump came to power, and a 50% tariff remains on steel exports, in a set back for that industry.
Asked if pharmaceuticals, critical to Ireland’s exports to the US, would be included, Trump signalled he was unwilling to budge. “Pharmaceuticals won’t be part of it, because we have to have them built, made in the United States,” he said.
Pharmaceuticals have also been excluded and could yet face punitive tariffs, Trump said.
And in a sign that a deal could spell long-term stability for the €1.4tn in transatlantic trade that has been upended by his tariff war, he said if a deal was done it would be permanent.
The deal was sealed after a 40-minute meeting at Trump’s golf course in Scotland where is on a private four day visit.
“If we do a deal today about the the European Union, that will be the end of it … we’ll go, I guess, a number of years at least,” he said.
He said the deal which would unite the world’s largest and second-largest economic blocs would be “the biggest deal” he has signed yet.
“People don’t realise, this is bigger than any other deal,” he said.
He repeated his claim one of the unfairest parts of the trading relationships with the EU was the inability to sell cars to the bloc.
Cars can be sold into the bloc but face a 10% tariff.
“We have a rough situation, if we want to sell cars in Europe, we’re not allowed. And as you know, they sell millions and millions of cars, Mercedes, BMW, so many different Volkswagen, so many different cars”.
