US President Donald Trump announced on Sunday that the United States and the European Union had reached an agreement on a trade deal that puts 15 per cent tariffs on EU goods entering the US.
“It was a very interesting negotiation. I think it's going to be great for both parties,” Trump said.
The deal, which was finalised in Scotland, includes major EU purchases of US energy and military equipment besides $600 billion in investments by the EU in the US, Trump told reporters.
Also Read: Trump, EU chief seek deal to end transatlantic tariff war
European Commission President, Ursula von der Leyen affirmed the agreement would include tariffs of 15 per cent across the board, and said that it would help rebalance trade between the two huge trading partners.
Also present on the occasion in Scotland’s Turnberry were US Commerce Secretary Howard Lutnick, Trade Representative Jamieson Greer and White House Deputy Chief of Staff Stephen Miller.
von der Leyen was accompanied by Maros Sefcovic, the EU's chief trade negotiator; Björn Seibert, the head of von der Leyen's Cabinet; Sabine Weyand, the commission's directorate-general for trade, and Tomas Baert, head of the trade and agriculture at the EU's delegation to the US.
Trump and von der Leyen held private talks at one of Trump's golf courses in Scotland, but not before Trump played golf for the second straight day at his Turnberry course, this time with a group that included sons Eric and Donald Jr.
Before the session, Trump had alleged the US had had a hard time trading with Europe and that he would change “a very one-sided transaction” that was “very unfair to the United States”.
Meanwhile, von der Leyen had said the US and EU together have the world’s largest trade volume that encompasses hundreds of millions of people and trillions of dollars. She called Trump a “tough negotiator and dealmaker”, to which Trump added, “but fair”.
If successful, Leyen said it would be the “biggest deal each of us has ever struck.”
Trump has been on a mission to shrink major US trade deficits since his second term as President.
More recently, he had hinted that any deal with the EU would have to “buy down” the currently scheduled tariff rate of 30 per cent.
Asked if he would be willing to accept tariff rates lower than Japan’s 15 per cent, Trump said “no.” As for the threat of retaliation from the Europeans, he said simply: “They'll do what they have to do.”
Trump’s five-day visit to Scotland is built around golf and promoting properties bearing his name.
British Prime Minister Keir Starmer is also said to have planned his own Turnberry meeting with Trump on Monday.
On Tuesday, Trump will be in Aberdeen in northeastern Scotland where his family has another golf course and is opening a third next month.
The Trump administration is said to have been dead set on imposing tariffs on August 1 when the deadline for tariff suspension ended.
US Commerce Secretary Howard Lutnick had told an American TV network that there would be "no more extensions" and "no more grace periods”. He added, however, that even after that, “people can still talk to President Trump. I mean, he's always willing to listen.”
The EU, meanwhile, was also prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.
If Trump eventually made good on his threat of tariffs against Europe, it could raise prices for everything, including French cheese, Italian leather goods, German electronics and Spanish pharmaceuticals.
The US and Britain, meanwhile, announced a trade framework in May and a larger agreement last month during the Group of Seven meeting in Canada. Trump says that deal is concluded and that he and Starmer will discuss other matters.
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