The American President Donald Trump and European Commission President Ursula von der Leyen are meeting on Sunday afternoon in Scotland. The EU is trying to strike a trade deal with the United States to prevent a trade war. Will there be an agreement?
Trump is at his golf course in Turnberry, in southwest Scotland, on Sunday. The meeting with Von der Leyen will take place there in the afternoon. Reportedly, American Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer are also coming to Turnberry. Euro commissioner Maros Sefcovic is also present.
On behalf of the EU, Von der Leyen hopes to reach a deal on the US tariffs imposed. If there is no agreement, the EU fears that Trump will come up with sky-high import duties, of 30 or even 50 percent. The EU would react strongly to this with counter-levies. That counter-package is already ready.
Nevertheless, Von der Leyen hopes that an agreement can be reached on a general import duty of 15 percent on European goods. Among other things, airplanes, spirits and medical equipment would be excluded from the deal.
A 15 percent levy will not be a good outcome for everyone, according to news agency Reuters. Originally, the EU wanted industrial goods to remain tax-free. But it is better than the 30 percent that Trump promised after the deadline. Moreover, a deal leads to certainty for European companies.
Trump estimates chance of deal at 50 percent
Lower import tariffs may be introduced for a certain amount of steel and aluminum. All quantities above that quota would then be taxed at 50 percent.
But whether such a deal will happen is still uncertain. Trump said Friday that he estimates the chance of a deal at 50 percent. The deadline for an agreement is August 1.