European Commission President Ursula von der Leyen will meet with US President Donald Trump today to finalise a trade deal for Europe, which would likely include a base tariff of 15% on most EU goods. This will end months of uncertainty for European companies, Reuters reported, BTA reports.
Trump, who is in Scotland for several days of golf and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen is a highly respected leader and he looks forward to meeting her at his Turnberry golf course.
He said there was a 50-50 chance that the United States and the 27-member European Union would reach a framework trade agreement, adding that Brussels "very much wants to make a deal."
The EU faces US tariffs on more than 70% of its exports - 50% on steel and aluminum, 25% on cars and car parts and a 10% tax on most other European goods. Trump has said he will raise tariffs to 30% on August 1 - a level that EU officials say would destroy entire sectors of transatlantic trade.
A 15% tariff on most EU goods would be seen by many in Europe as an unsatisfactory result compared to the original European goal - a zero-tariff deal on all industrial goods.
But it would be better than 30% and would remove uncertainty about business conditions that has already weighed on European companies' profits. For Trump, the EU deal would be the biggest trade deal ever, surpassing the $550 billion deal with Japan signed earlier this week.
Trump, who is seeking to reshape the global economy and reduce long-standing U.S. trade deficits, has so far reached agreements with Britain, Japan, Indonesia and Vietnam, although his administration has fallen short of a promise of “90 deals in 90 days”.
A deal with the EU would be a huge success, as the U.S. and EU are each other's largest trading partners and together account for a third of global trade.
Although a deal is close, final negotiations are still needed. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick traveled from Washington to Scotland yesterday for talks with European Trade Commissioner Maroš Šefčovič, who is also traveling to Scotland ahead of the meeting between Trump and Von der Leyen.