'A good deal for everybody': US and EU reach 15% tariff deal after Trump-von der Leyen meeting
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48 mins ago
US PRESIDENT DONALD Trump and European Commission President Ursula von der Leyen have 'reached a deal' after meeting in Scotland in a high-stakes attempt to end a months-long transatlantic trade dispute.
'We have reached a deal. It's a good deal for everybody,' Trump told reporters after talks with von der Leyen at his golf resort in Turnberry, Scotland.
'This is the biggest [deal] of them all.'
He told reporters in Scotland that the EU had committed to investing an extra $600 billion in the United States, as well as purchasing $750 billion worth of energy.
Trump had put the odds of a deal at '50-50″. Before the meeting, Trump said that tariffs on EU exports will not be lower than 15%.
'No,' Trump responded when asked by a reporter whether he was able to agree to a lower levy. The US president, sitting beside von der Leyen, added that pharmaceuticals 'won't be part of' any deal.
Speaking afterwards, Trump said that the US and EU have 'reached a deal'.
The European Commission, negotiating on behalf of the EU's 27 member states, has been working to salvage a trading relationship worth €1.6 trillion annually in goods and services.
The motorcade of Ursula von der Leyen the president of the European Commission arrives at Trump Turnberry golf course in South Ayrshire.
Alamy Stock Photo
Alamy Stock Photo
European capitals have been closely involved in the process, and their diplomats are expected to quickly sign off on any agreement reached at the leadership level.
Speaking this afternoon on RTÉ's This Week, European Commissioner Michael McGrath said that the EU was ultimately hoping for a 'zero for zero' deal in which the US and the EU would refrain from adding tariffs and counter tariffs to a large group of products.
Although this is the EU's 'ideal scenario', McGrath accepted that this was 'not entirely shared'.
'The EU's response will depend on whether or not an agreement is reached, and I think it's not helpful to get into the different scenarios that could emerge if there is no agreement,' McGrath said, 'and if the US go ahead with the 30% [threatened tariff rate] and so on, then we are ready with our countermeasures.'
Trump waves to reporters while playing golf at his Turnberry golf course.
Alamy Stock Photo
Alamy Stock Photo
On arriving in the UK on Friday, the 79-year-old president said he hoped to strike 'the biggest deal of them all' with the EU.
He referred to von der Leyen as 'Ursula' and called her 'a highly respected woman', a notable shift from past criticism of the EU.
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'I think we've got a good 50-50 chance,' said Trump, acknowledging that about 20 issues still need resolving.
The European Commission said on Thursday it believed a deal was within reach.
Tánaiste Simon Harris said this week he remains 'cautiously optimistic' a deal could be reached for a 'positive future EU-US trading relationship within the coming days'.
'It is now long past time to strike a deal,' Harris said.
Tariff threats
Tariffs pose a serious challenge for export-oriented economies (like us in Ireland), which rely heavily on open access to international markets.
In recent decades, the dismantling of global trade barriers has helped lift millions out of poverty, particularly in developing nations.
However, the most damaging effect of the ongoing trade war may be the uncertainty it has created, freezing investment decisions both in Ireland and across Europe.
According to diplomats, the proposal includes a baseline 15% tariff on EU exports to the US, matching the rate agreed with Japan.
Exceptions would be made for key sectors such as aviation, timber and spirits, excluding wine.
The EU would also commit to increasing imports of US liquefied natural gas and make other investment pledges.
A potential compromise on steel is also being discussed, allowing a set quota to enter tariff-free, with any excess taxed at 50%.
Since Trump's return to office, the EU has been hit by successive waves of US tariffs, including 25 per cent on cars, 50% on steel and aluminium, and a 10 per cent across-the-board rate, which could rise to 30% without a deal.
The EU is eager to avoid further damage to its already fragile economy. If talks fail, the EU has prepared retaliatory tariffs on $109 billion worth of US goods, including aircraft and cars, to take effect from 7 August.
It is also drawing up measures targeting US services.
France and other member states have urged the Commission not to shy away from using a so-called trade 'bazooka' to restrict American access to European markets and public tenders, though such a move would mark a serious escalation.
Trump, who has promised to strike '90 deals in 90 days', has so far concluded five, including agreements with Britain, Japan and the Philippines.
A deal with the EU would boost his trade credentials ahead of the US election and distract from mounting controversy over the Jeffrey Epstein case, which continues to draw backlash from some of his own supporters.
Additional reporting from AFP
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Irish Examiner
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