Trump says US-EU trade deal done, 15pc tariff on EU exports

TURNBERRY: US President Donald Trump said Sunday that he had reached a trade agreement with European Union chief Ursula von der Leyen, with 15 per cent tariffs on EU exports across the board.

“We have reached a deal. It’s a good deal for everybody,” Trump told reporters after talks with von der Leyen at his golf resort in Turnberry, Scotland. The EU chief also hailed it as a “good deal”.

However, he also remarked that tariffs on EU exports will not be lower than 15 per cent.

“No,” Trump responded when asked by a reporter whether he was able to agree to a lower levy. The president, sitting beside EU chief Ursula von der Leyen, added that pharmaceuticals “won’t be part of” any deal.

EU INVESTMENT AND ENERGY IMPORTS

At the same time, he said that the EU had committed to investing an extra $600 billion in the United States, as well as purchasing $750 billion worth of energy.

Speaking on the occasion, von der Leyen said the agreement would include 15 per cent tariffs across the board, saying it would help rebalance trade between the two large trading partners.

On Friday, Trump said there was a 50-50 chance or perhaps less that the United States would reach a trade agreement with the European Union, saying Brussels wanted to “make a deal very badly”.

Read more: EU chief to meet Trump who sees 50-50 chance of trade deal

“We’re working very diligently with Europe, the EU,” Trump told reporters as he left the White House to head to Scotland for several days of golfing and bilateral meetings.

Meanwhile, it was 50-50 when he left Washington. “I would say that we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU.”

Asked a second time about the prospects for an agreement, he said: “That’s the big one right now … I think the EU has a pretty good chance of making a deal right now.”

CHINA-US TARIFF PAUSE

Earlier on Sunday, the South China Morning Post (SCMP) reported on Sunday, citing people familiar with the matter. that Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.

Read more: US says tariff deadline intact, but report suggests China-US pause

On the other hand, Commerce Secretary Howard Lutnick said Sunday the US deadline of August 1 for imposing tariffs on its trading partners is firm and there will be no extensions.

“So no extensions, no more grace periods. August 1, the tariffs are set. They’ll go into place. Customs will start collecting the money, and off we go,” Lutnick told “Fox News Sunday.”

It’s a developing story. Details to follow.