Trump, EU's von der Leyen to meet to clinch trade deal
Before the meeting, expected at around 4pm on Mr Trump's golf course in Turnberry, western Scotland, US and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals.
US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland yesterday and EU Trade Commissioner Maroš Šefčovič arrived this morning.
Mr Lutnick said that the EU must open its markets for US exports in order to convince Mr Trump to reduce a threatened 30% tariff rate due to kick in on 1 August.
He added that the EU clearly wanted to make a deal.
"The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set," Mr Lutnick told 'Fox News Sunday,' adding that Mr Trump was looking to increase access for US firms.
He said the ultimate decision would be up to Mr Trump, who has said there is a 50:50 chance a deal can be reached with the EU.
Mr Lutnick said the US tariff deadline of 1 August is firm and that there would be no extensions.
"So no extensions, no more grace periods. 1 August, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go."
"We're cautiously optimistic that there will be a deal reached," said a Trump administration official, who spoke on condition of anonymity. "But it's not over till it's over."
Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials to agree on the amount of leeway Ms von der Leyen would have in the talks.
In case there is no deal and the US imposes 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93 billion ($109 billion) of US goods.
EU diplomats have said a deal would likely include a broad 15% tariff on EU goods imported into the US, mirroring the US-Japan trade deal, along with a 50% tariff on European steel and aluminium for which there could be export quotas.
The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade.
EU officials are hopeful that a 15% baseline tariff would also apply to cars, replacing the current 27.5% auto tariff.
Possible exemptions
Some expect the 27-nation bloc may be able to secure exemptions from the 15% baseline tariff for its aerospace industry and for spirits, though probably not for wine.
The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the United States.
Mr Trump told reporters there was "not a lot" of wiggle room on the 50% tariffs that the US has on steel and aluminium imports, adding, "because if I do it for one, I have to do it for all."
The US President, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that Ms von der Leyen was a highly respected leader and he was looking forward to meeting with her.
He said that Brussels wanted to "make a deal very badly".
The EU now faces US tariffs on more than 70% of its exports, with 50% on steel and aluminium, an extra 25% on cars and car parts on top of the existing 2.5% and a 10% levy on most other EU goods.
Mr Trump has said that without a deal, he would hike the rate to 30% on 1 August, a level EU officials said would wipe out whole chunks of transatlantic commerce.
Further tariffs on copper and pharmaceuticals are looming.
The uncertainty and higher tariffs have already hit profits of EU companies in several sectors.
A 15% tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods.
Seeking to learn from Japan, which secured a 15% baseline tariff with the US in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting.
For Mr Trump, aiming to reorder the global economy and reduce decades-old U.S. trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the $550 billion deal with Japan.
So far, he has reeled in agreements with the UK, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days."
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