In a bid to resolve a protracted transatlantic trade dispute, EU chief Ursula von der Leyen and President Donald Trump have announced plans to meet in Scotland this weekend.
The meeting comes in the wake of Trump's pledge to impose punitive tariff hikes on numerous countries if they fail to negotiate a deal with Washington by August 1.
The EU, currently facing a potential 30% tariff, has been vigorously pursuing an agreement with the Trump administration, while simultaneously preparing for retaliatory measures should the negotiations prove unsuccessful.
As reported by Newsmax, von der Leyen first disclosed the upcoming meeting on social media, stating, "Following a good call with POTUS, we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong."
Upon his arrival in the U.K. late Friday, President Trump confirmed his scheduled meeting with the head of the European Commission, which has been representing the 27-nation bloc in negotiations with Washington. "I'll be meeting with the EU on Sunday, and we'll be working on a deal," he told reporters at Prestwick Airport near Glasgow.
Trump further expressed his respect for von der Leyen, describing her as a "highly respected woman." He remained cautiously optimistic about the outcome of the meeting, stating, "We'll see if we make a deal." He reiterated his previous assertion that the likelihood of reaching an agreement was "50-50," with unresolved issues lingering on "maybe 20 different things."
However, he emphasized the significance of the potential deal, stating, "And that would be, actually, the biggest deal of them all, if we make it."
The upcoming meeting follows months of negotiations between top EU and U.S. trade officials and recent indications that both parties are moving towards an agreement. According to several European diplomats, the proposed agreement would involve a baseline 15% U.S. tariff on EU goods, matching the level secured by Japan this week, with potential exceptions for critical sectors.
Paula Pinho, spokesperson for von der Leyen, stated that "intensive negotiations" had been ongoing at both technical and political levels in the lead-up to Sunday's meeting. She said, "Leaders will now take stock and consider the scope for a balanced outcome that provides stability and predictability for businesses and consumers on both sides of the Atlantic."
The EU, which has been hit by multiple waves of tariffs since Trump took office, currently faces a 25% tariff on cars, 50% on steel and aluminium, and a 10% tariff across the board, which Washington threatens to increase to 30% in the event of a no-deal scenario. The EU is keen to avoid these sweeping tariffs, which could further damage the European economy, already experiencing sluggish growth, and harm a trading relationship worth an annual $1.9 trillion in goods and services.
EU member states have authorized the European Commission to negotiate a deal to avoid hefty U.S. tariffs, with retaliation being a last resort if talks fail. In a bid to maintain pressure in the final stages of negotiations, EU states backed a package of retaliation on $109 billion of U.S. goods, including aircraft and cars, to be implemented in stages from August 7 if no deal is reached.
While most states prefer a deal to no deal, even with undesirable levies of 15%, exemptions are crucial. Items under discussion include aircraft, steel, lumber, pharmaceutical products, and agricultural goods. Regarding steel, diplomats suggest a compromise could allow a certain quota to enter the United States, with amounts exceeding that taxed at 50%.
Since initiating its tariff campaign, the Trump administration has unveiled only five agreements, including deals with Britain, Japan, and the Philippines. While hopes for a deal within the EU have been rising, the looming August 1 deadline brings a sense of dj vu.
Earlier this month, EU officials believed they were on the brink of a deal, only for Trump to increase his tariff threat to 30%. As one EU diplomat stressed this week, "The final decision is in the hands of President Trump."
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