Trump, EU’s von der Leyen to meet to clinch trade | Australian Markets

European Commission President Ursula von der Leyen is set to meet US President Donald Trump to clinch a trade deal for Europe that may probably see a 15 per cent baseline tariff on most EU items, however finish months of uncertainty for EU firms.

Before the assembly, anticipated at 1530 GMT Sunday (0130 AEST Monday) on Trump’s golf course in Turnberry, western Scotland, US and EU groups had been in remaining talks on tariffs for essential sectors like automobiles, metal, aluminium or prescription drugs.

US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning.

Lutnick informed “Fox News Sunday” that the EU needed to open its markets for more US exports to persuade Trump to scale back a threatened 30 per cent tariff fee that’s due to kick in on August 1.

“The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30 per cent tariffs that he set,” Lutnick stated, including that the EU clearly needed – and needed – to attain an settlement.

A separate U.S. administration official was upbeat that a deal was doable. “We’re cautiously optimistic that there will be a deal reached,” the official stated, talking on situation of anonymity. “But it’s not over till it’s over.”

Ambassadors of EU governments, on a weekend journey to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officers on Sunday to agree on the quantity of leeway von der Leyen would have within the talks.

In case there may be no deal and the U.S. imposes 30 per cent tariffs from August 1, the EU has ready counter-tariffs on 93 bn euros ($A164 bn) of US items.

EU diplomats have stated a deal would probably embody a broad 15 per cent tariff on EU items imported into the US, mirroring the U.S.-Japan trade deal, together with a 50 per cent tariff on European metal and aluminium for which there may very well be export quotas.

The EU deal could be a big prize, on condition that the US and EU are one another’s largest trading companions by far and account for a third of international trade.

EU officers are hopeful that a 15 per cent baseline tariff would additionally apply to automobiles, changing the present 27.5 per cent auto tariff.

Some anticipate the 27-nation bloc might have the option to secure exemptions from the 15 per cent baseline tariff for its aerospace industry and for spirits, although most likely not for wine.

The EU might additionally pledge to buy more liquefied natural fuel from the US, a long-standing offer, and enhance investment within the United States.

The US president, in Scotland for a few days of {golfing} and bilateral conferences, informed reporters upon his arrival on Friday night that von der Leyen was a extremely revered chief and he was trying ahead to assembly together with her.