In a critical attempt to resolve a transatlantic trade dispute, European Commission President Ursula von der Leyen is meeting with U.S. President Donald Trump today at his Turnberry resort in Scotland. The meeting, arranged after a “good phone call” between the two, takes place just a week before a looming August 1 deadline for new, high tariffs on European goods.
High-Stakes Trade Negotiations
According to von der Leyen’s post on X, the leaders will discuss “transatlantic trade relations” and how to keep them strong.
Before the meeting, Trump told reporters there was a “50-50 chance, maybe even less” of reaching a deal with the EU, though he later added that he believed the EU had “a pretty good chance” to make an agreement.
The U.S. and EU have been negotiating for weeks to avert the 30% tariff that Trump announced for August 1. A potential compromise being discussed would set a 15% baseline tariff on most EU goods, a rate similar to a recent deal with Japan.
History of the Tariff Conflict
The current trade conflict began in early April when Trump announced steep tariffs on imports from the EU and many other countries. He later lowered them to 10% to allow for negotiations. Key tariffs that remain threatened include:
- 25% on vehicles
- 50% on steel and aluminum products
In the event that a deal is not reached, the EU has prepared potential counter-tariffs on $93 billion worth of American goods.
