EU’s Von der Leyen to Meet Trump in Bid to Clinch Trade Deal

(Bloomberg) — European Commission President Ursula von der Leyen said she will travel to Scotland this weekend to meet with US President Donald Trump, as the two sides aim to conclude a trade deal ahead of an Aug. 1 deadline when 30% tariffs on the bloc’s exports are otherwise due to kick in.

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After months of talks and shuttle diplomacy between Brussels and Washington DC, the two sides have been zeroing in on an agreement this past week that would see the EU face 15% tariffs on most of its trade. Limited exemptions are expected for aviation, some medical devices and generic medicines, several spirits, and a specific set of manufacturing equipment that the US needs, Bloomberg previously reported.

Steel and aluminum imports would likely benefit from a quota under the arrangements under discussion but above that threshold they would face a higher tariff of 50%.

“We’ll see if we make a deal,” Trump said as he arrived in Scotland on Friday. “Ursula will be here, highly respected woman. So we look forward to that.”

Trump reiterated that he believed there was “a 50-50 chance” of a deal with the EU, saying there were sticking points on “maybe 20 different things” that he did not want to detail publicly.

“That would be actually the biggest deal of them all if we make it,” the president said.

Trump gave similar odds of an agreement with European negotiators in Washington before leaving, but also said the EU had a “pretty good chance” of reaching an agreement.

Trump announced tariffs on almost all US trading partners in April, declaring his intent to bring back domestic manufacturing, to pay for a massive tax-cut extension and to stop the rest of the world from taking advantage of the US. He has also sought to remove what he describes as barriers for American companies to do business around the world.

Alongside a universal levy, the US president has hit cars and auto parts with a 25% levy, and steel and aluminum with double that. He’s also threatened to target pharmaceuticals and semiconductors with new duties as early as next month, and recently announced a 50% tariff on copper.

The EU has been seeking quotas and a ceiling on future sectoral tariffs that the US has yet to implement but it’s unclear if an initial agreement will shield the bloc from potential future levies at this stage.