EU and US trade negotiators have been engaged in intense discussions ahead of a critical meeting between US President Donald Trump and European Commission President Ursula von der Leyen in Scotland on Sunday, as Brussels races to secure a deal to avert a potentially damaging transatlantic tariff war.
Von der Leyen arrived in Glasgow Saturday evening and is set to meet Trump on Sunday afternoon. EU negotiators hope the talks will finalize a trade pact that could prevent the imposition of 30 percent US tariffs on European goods, as well as reciprocal retaliatory measures from the EU.
The proposed agreement would establish tariffs of approximately 15 percent on most US imports from the EU, mirroring a recent deal the US reached with Japan. However, sources close to the negotiations told the Financial Times that talks continued late into Saturday night, with officials debating the precise tariff levels for key sectors including steel, automotive, and pharmaceuticals. The discussions were described as occasionally combative.
US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer remained in Washington Saturday but are expected to arrive Sunday morning at Trump’s Turnberry golf resort on Scotland’s southwest coast to finalize the deal.
Trump has repeatedly threatened to impose 30 percent tariffs on all EU exports to the US if no agreement is reached by August 1. These tariffs would be in addition to existing levies of 25 percent on cars and car parts, and 50 percent on steel and aluminum. The US has also launched investigations that could lead to tariffs on chips, pharmaceuticals, and aerospace components.
Within the EU, a growing number of member states are urging Brussels to activate pre-prepared retaliatory tariffs targeting nearly €100 billion of US goods should the talks fail.
The EU and US maintain a €1.6 trillion trade relationship, one of the world’s largest, and have been negotiating a deal for nearly four months. During this period, the US has applied additional tariffs of 10 percent on certain EU products alongside the already imposed duties.
Trump has frequently criticized the EU, accusing it of “ripping off” America. Upon his arrival in Scotland, where he is also playing golf and meeting UK officials, Trump acknowledged around 20 “sticking points” remained. “The EU want[s] to make a deal very badly,” he said.
EU ambassadors are scheduled to meet Sunday morning to receive an update on the talks and must approve any deal reached between Trump and von der Leyen, EU officials confirmed.
If an agreement is reached, Brussels will suspend tariffs of up to 30 percent on €93 billion worth of US imports starting August 7. Failing that, some member states are pressing the European Commission to activate its anti-coercion instrument early next week—a trade mechanism designed to counteract coercive economic measures.
Never before used, the anti-coercion instrument’s first step requires Brussels to establish the existence of coercion. Following that, a weighted majority of member states could approve retaliatory actions, potentially including tariffs on digital advertising revenues that would impact major tech firms and barring US companies from participating in public tenders.
