Despite the intensive talks, a landing zone for an agreement remains potentially difficult for von der Leyen, with divisions lingering between EU countries over how to approach the negotiations. All options — including no deal — remain on the table, according to three diplomats.
In a late development, the U.S. side threatened the EU with a 17 percent tariff on food imports, two national officials said, confirming a report in the Financial Times.
Before committing to an outline agreement, Commission President Ursula von der Leyen is expected to consult individually with EU leaders over the weekend to decide on the way forward, said one of the officials, who like the others cited in this story was granted anonymity to discuss the sensitive matter.
Trump was due to consult with his advisers on Monday, according to two EU diplomats, meaning a formal announcement would likely only come later.
Rule of three
In the view of the Commission, Trump is expected to lump America’s trade partners into three categories, according to another EU diplomat. In a first, the pause in his “reciprocal” tariffs would remain where provisional agreement has been reached, while further tariff relief at a later stage was possible.
In a second category, the country-specific tariffs announced by Trump in April — in the EU’s case 20 percent — would be reinstated where no agreement has been reached while negotiations are ongoing. And in a third, higher country tariffs would remain until further notice as long as talks are going badly.