As trade tensions mount, U.S. President Donald Trump cast doubt on a potential deal with the European Union, despite Brussels signaling readiness to compromise.
U.S. President Donald Trump on Friday said there was only a "50-50 chance, maybe less" of reaching a trade agreement with the European Union, though he emphasized that Brussels was eager to make a deal.
Speaking to reporters before leaving the White House for a trip to Scotland, Trump said the EU was "working very diligently" and expressed cautious optimism: "I think the EU has a pretty good chance of making a deal right now."
The European Commission echoed a similar sentiment Thursday, stating that a negotiated solution with the U.S. was within reach. However, it also approved counter-tariffs on $109 billion worth of U.S. goods should talks fail. The EU hopes to avert the 30% import tariffs Trump has threatened to impose by 1 August.
Trump noted that the EU would need to “buy down” the proposed tariff rate but did not provide specifics.
While EU diplomats hinted at a possible framework involving a 15% baseline tariff on goods and a 50% tariff on European steel and aluminum, the White House downplayed such discussions as "speculation."
Unlike Japan, which committed to U.S. investments as part of its trade deal, the EU is not expected to make similar pledges.
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