The European Union and the United States could reach a trade agreement on trade this weekend, thus ending months of uncertainty for European industry, EU officials and diplomats said on Friday.
According to these sources, the agreement probably provides a basic rate of 15% on all European products entering the American market, as well as a 50% tax on European steel and aluminum.
US President Donald Trump said on Friday that there was “in two or less chance” that the United States reached a trade agreement with the European Union, adding that Brussels “wanted to conclude an agreement.”
One of the sources considered that an agreement this weekend seemed likely, adding that “the agreement is essentially in the hands of Trump now”.
A source close to negotiations said there was a “good chance” that the president of the European Commission, Ursula von der Leyen, meets Donald Trump in Scotland during the weekend.
A commission spokesperson did not follow up on the multiple requests concerning a possible meeting.
Donald Trump has to go to his golf course, located on the west coast of Scotland, and must meet British Prime Minister Keir Starmer on Monday.
By combining goods, services and investments, the EU and the United States are by far the largest business partners with each other. The US Chamber of Commerce with the EU warned in March that any conflict would jeopardize 9.5 billions of dollars in the most important commercial relationship in the world.
The EU faces American customs duties on more than 70% of its exports: 50% on steel and aluminum, 25% on cars and car parts, as well as a 10% tax on most other European products. Donald Trump clarified his intention to bring this rate to 30% on August 1, a level which, according to European officials, would destroy a large part of the transatlantic trade.
Other customs duties, notably on copper and pharmaceutical products, are also envisaged.
The EU has prepared countermeasures likely to come into force on August 7 if the discussions failed.