President Donald Trump is set to hold a crunch talks with Scotland’s European Union chief Ursula von der Reyen after weeks of intense trade talks as Brussels aims to sign a contract with Washington to avoid the transatlantic trade war.
Von der Leyen, president of the European Commission, will meet with the US president at Scotland’s Turnberry Golf Club on Sunday. The European minister hopes the meeting will bring about a contract to avoid the 30% tariff Trump threatened with EU goods.
European negotiators aim to set tariffs at 15%, according to those involved in the consultation. Trump told reporters Friday that Brock “want”[s] They trade very badly.”
On July 12, Trump threatened to impose a 30% tariff if he could not secure an agreement by the deadline that expires on Friday. That will come in addition to the 25% tariff on car and car parts and the 50% collection of steel and aluminum already in service.
Washington’s biggest trading partner, the EU is a frequent target of Trump’s escalating trade rhetoric, accusing the president of “tearing” the United States.
In 2024, EU exports to the US totaled 53.2 billion euros ($603 billion). According to EU data, pharmaceuticals, auto parts and industrial chemicals were one of the largest exports.
Will the Trump von der Reyen meeting achieve and end the uncertainty of the ties of transatlantic trade as a breakthrough?
What is the main difference between the two sides?
The US president told Turnbury reporters on Friday there were “20 fixed points.”
When asked what they were, he said: “Well, I don’t want to tell you what the point is to stick to.”
At the same time, he described von der Leyen as a “very respected woman”, predicting Sunday’s meeting was “good” and rated the potential for the transaction as “50-50”.
It is understood that on the European side, if the speech collapses, the increase in EU countries is calling for Brussels to promote retaliatory tariff packages already prepared for 90 billion euros ($100 billion) US goods, including auto parts and bourbon.
Both sides, which traded 1.6 trillion euros ($1.8 trillion) goods and services in 2023, have been negotiating ever since Trump suspended what he called “mutual” tariffs and suspended “mutual” tariffs he placed in almost every country.
Meanwhile, the US has charged a flat 10% tax on all EU products, 25% on cars and 50% on steel and aluminum.
This month, EU Trade Commissioner Maros Sefcovic said:
Still, the Bullock is understood to be full of disagreements with the US over trade policy. While Germany is urging rapid transactions to protect its industry, other EU members, particularly France, have argued that EU negotiators should not cave into asymmetric deals in favor of the United States.
On Saturday, Von del Reyen spokesman Paula Pinho said: [level] It is ongoing between the EU and the US. Leaders take stock and consider the range of balanced outcomes that provide stability and predictability for businesses and consumers on both sides of the Atlantic. ”
What did the US and the EU exchange each other?
In 2024, the US EU’s commodity trade reached nearly $1 trillion, and the EU became the largest trading partner in the US.
In total, the US purchased $235.6 billion in goods than those sold to the 27 countries that make up the EU. Meanwhile, the US has gained surplus on its trade in services with the EU.
The US has purchased medicines primarily from the EU, and has purchased machinery and equipment, cars, and other non-railway vehicles.
The US exported fuel, medicines, machinery and aircraft to the EU to $370 billion.
Why did they have a hard time inking their previous deals?
Like all countries where the US operates a trade deficit, Trump has long accused the EU of storming the field, and it is determined that Brussels is adopting measures to reduce the surplus of commodity trade with the US.
Washington has repeatedly raised concerns over European VAT and regulations regarding food exports and IT services. Trump has argued that these controls serve as barriers to non-party trade.
In fact, Sefcovic recently told the Financial Times that it wanted to reduce the US EU trade deficit by purchasing more US gas, weapons and produce.
And while European leaders want the lowest possible tariffs, they “want to be respected as our partner,” French President Emmanuel Macron said Wednesday.
Meanwhile, on July 14, Danish Foreign Minister Lars Lokke Rasmussen told reporters in Brussels that “we need to be prepared to use all the tools.”
He added: “If you want peace, you must prepare for war.” Scottish negotiators hope it doesn’t come to it.
This month, Oxford Economics, an economic forecast consultancy, estimated that a 30% tariff could push the EU to the “end of the recession.”
Measures from the EU will also surge certain US industries. European tariffs can reduce the incomes of US farmers and auto workers. This is Trump’s main constituency.
