EU–US Trade Pact Talks Enter Final Stage; Trump To Meet Von Der Leyen On Sunday

<p>Efforts to avert a potential transatlantic trade war will take centre stage on Sunday as European Commission President Ursula von der Leyen meets US President Donald Trump in Scotland.</p>
<p>The meeting is aimed at finalising a trade framework that could set a 15 per cent baseline tariff on most European Union (EU) goods, bringing much-needed clarity for businesses but falling short of the EU&rsquo;s initial hopes for zero tariffs, reported Reuters.</p>
<p>Trump, currently in Scotland for a combination of golfing and bilateral discussions, described von der Leyen as &ldquo;a highly respected leader&rdquo; upon his arrival on Friday evening.</p>
<p>Speaking to reporters, he said he was looking forward to hosting the meeting at his Turnberry golf course and assessed the chances of striking a deal as &ldquo;50-50&rdquo;, adding that Brussels &ldquo;wanted to make a deal very badly.&rdquo;</p>
<h2><strong>Stakes High as Tariff Deadline Nears</strong></h2>
<p>The talks come at a crucial juncture. The EU currently faces a web of US tariffs, including 50 per cent on steel and aluminium, 25 per cent on cars and car parts, and a 10 per cent levy on most other exports. Trump has warned that he will raise those rates to 30 per cent from August 1 if no agreement is reached, a move that EU officials say could devastate transatlantic trade. Tariffs on copper and pharmaceuticals are also on the horizon.</p>
<p>For Trump, clinching an EU pact would mark his largest trade deal yet, surpassing the $550 billion accord signed with Japan earlier this week. He has already struck agreements with Britain, Japan, Indonesia, and Vietnam, but his administration has fallen short of the much-hyped &ldquo;90 deals in 90 days&rdquo; pledge.</p>
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<h2><strong>Negotiators Scramble Ahead of High-Stakes Meeting</strong></h2>
<p>US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday for preparatory talks with EU Trade Commissioner Maros Sefcovic ahead of the leaders&rsquo; meeting.</p>
<p>&ldquo;We&rsquo;re cautiously optimistic that there will be a deal reached,&rdquo; a senior Trump administration official said anonymously. &ldquo;But it&rsquo;s not over till it&rsquo;s over.&rdquo;</p>
<p>Should negotiations fail, the EU is ready with counter tariffs on &euro;93 billion ($109 billion) worth of US goods. Diplomats suggest any final arrangement will probably feature a broad 15 per cent tariff on EU goods entering the US, along with maintaining the 50 per cent duty on steel and aluminium.</p>
<p>Trump has been firm on that point, telling reporters there was &ldquo;not a lot&rdquo; of flexibility on steel and aluminium duties: &ldquo;because if I do it for one, I have to do it for all.&rdquo; Whether Washington will include cars and pharmaceuticals under the 15 per cent tariff remains uncertain, though EU officials remain hopeful the new rate will cover those sectors.</p>