U.S. President Trump and European Union’s von der Leyen moved closer to a trade deal Sunday that may impose a 15% tariff on most EU goods, averting steeper U.S. levies.
European Commission President Ursula von der Leyen met with U.S. President Donald Trump on Sunday in Scotland, aiming to finalize a high-stakes trade deal that could see a broad 15% tariff imposed on most EU goods entering the U.S.
The negotiations held at Trump’s Turnberry golf resort come as both sides try to avert the imposition of steep new tariffs, particularly a threatened 30% U.S. tariff on EU products set to take effect 1 August. U.S. and EU negotiators were locked in last-minute talks on key sectors including automobiles, steel, aluminium, and pharmaceuticals.
President Trump, speaking ahead of the talks, called the current trade arrangement “very unfair to the United States,” while von der Leyen admitted there was a need for “rebalancing,” acknowledging the EU's trade surplus with the U.S.
U.S. Commerce Secretary Howard Lutnick warned that unless the EU opened its markets further to American exports, Trump may go ahead with the 30% tariff plan. EU diplomats say counter-tariffs targeting $109 billion in U.S. goods are ready if talks fail.
According to EU officials, the deal under discussion includes a uniform 15% tariff similar to the U.S.-Japan agreement along with a 50% tariff on steel and aluminium, potentially offset by export quotas. The auto sector may also see a significant adjustment, with hopes of reducing the current 27.5% tariff to 15%.
Both sides expressed cautious optimism, with a senior U.S. official saying a deal was "within reach," though not yet guaranteed.
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