US President Donald Trump on Sunday expressed optimism over reaching a trade deal with the European Union, even as the clock ticks toward an August 1 deadline that could trigger sweeping tariffs on EU exports to the United States.
Speaking at the start of a high-stakes meeting with European Commission President Ursula von der Leyen at his Turnberry golf resort on Scotland’s western coast, Trump said there was a “good chance” of striking an agreement, despite “three or four main sticking points” — most notably around what he called “fairness” in car and agricultural exports.
Tariff threat looms
Washington has threatened to impose a 30% across-the-board tariff on EU goods beginning August 1 unless a deal is reached. Currently, the EU is already facing a 25% levy on cars, 50% on steel and aluminum, and an additional 10% tariff on other goods — all of which would be raised under a no-deal scenario.
The EU has been pushing to secure a deal to protect a transatlantic trade relationship worth roughly $1.9 trillion annually in goods and services. Negotiators hope to avoid further economic strain on an already sluggish European economy, viewing retaliation as a last resort.
Key sticking points
Tariffs on automobiles are a central concern for EU members, particularly Germany and France, which have strong automotive sectors. Another crucial issue is steel: Brussels has proposed a compromise that would allow limited quotas of steel into the US before higher tariffs would kick in.
Von der Leyen’s Commission has been leading the negotiations on behalf of all 27 EU member states. Any final agreement must win unanimous backing from the bloc.
50-50 odds
Ahead of the meeting, Trump had pegged the likelihood of a deal at “50-50” and reiterated his tough stance on tariffs as a negotiation tool.
Sunday’s face-to-face meeting between Trump and von der Leyen began at 4:30 pm local time (1530 GMT) at the Turnberry resort, signaling a last-ditch effort to avoid a transatlantic trade rupture.
A breakthrough, if reached, could avert what both sides view as a damaging trade war and offer a path forward for stabilizing US-EU relations amid broader geopolitical tensions.