In a critical meeting in Scotland, Donald Trump and EU leader Ursula von der Leyen aim to resolve a potential trade war. With looming threats of 30% tariffs on EU exports to the US, negotiators are racing against time to finalize an agreement before the leaders' Sunday meeting.
High-Stakes Negotiations: Trump and EU Leaders Strive to Avert Trade War
High-Stakes Negotiations: Trump and EU Leaders Strive to Avert Trade War
Donald Trump and EU leader Ursula von der Leyen are set to meet in what could be a dramatic and decisive discussion in Scotland on Sunday. Negotiators from the US and EU are working tirelessly to prevent a trade war, reports the Financial Times. They aim to reach an agreement before the leaders' meeting.
US Commerce Secretary Howard Lutnick and top EU representatives continued negotiations late into Saturday night to finalize a deal that would resolve the tariff crisis between the US and EU.
They hope to reach an agreement to avoid US-imposed punitive tariffs of 30% on EU products—and in turn, avoid retaliatory tariffs of the same level from the EU. The final details concern tariffs on steel, cars, car parts, and pharmaceutical products that the EU exports to the US, according to the Financial Times.
"Aggressive Talks"
"At times, the talks were aggressive," writes the British financial newspaper.
There is immense pressure on the negotiations to reach an agreement before US President Donald Trump meets with European Commission President Ursula von der Leyen in Scotland on Sunday afternoon. Trump arrived in Scotland on Friday, while von der Leyen flew to Glasgow on Saturday evening.
Commerce Secretary Lutnick and US negotiator Jamieson Greer conducted talks from Washington on Saturday. However, they are expected to arrive at Trump's exclusive golf resort in Turnberry on Scotland's southwestern coast on Sunday to finalize a deal, reports the Financial Times.
Threat of 30% Tariff
Trump has threatened to impose a 30% tariff on all EU exports to the US if the parties do not reach an agreement by August 1. This tariff would be in addition to the existing 25% on cars and car parts from the EU and the 50% already in place for steel and aluminum.
The EU has threatened countermeasures, meaning tariffs at equivalent levels, on American exports to Europe.
Trump arrived in Scotland on Friday, where he is playing golf and meeting with British leaders. The President stated that there are around 20 "sticking points" remaining in the talks with the EU.