** Former US President Donald Trump declared an impending tariff agreement with the European Union would be “the biggest of them all” upon arriving in Scotland. “I look forward to meeting Ursula von der Leyen on Sunday; she is a highly respected woman,” Trump added.
EU Commission spokesperson Paula Pinho confirmed, “Intense technical and political negotiations between the EU and US are underway. The leaders will now assess the situation and evaluate the possibility of reaching a balanced outcome ensuring stability and predictability for businesses and consumers on both sides of the Atlantic,” ahead of the Scotland summit between European Commission President Ursula von der Leyen and Trump.
The meeting, scheduled for Sunday at Trump’s Turnberry resort on Scotland’s River Clyde estuary, marks the first major bilateral since Trump returned to office. It aims to conclude, at least temporarily, the protracted tariff negotiations. Von der Leyen confirmed the hastily arranged trip, avoiding a White House visit, signaling a deal is in its final stages. A draft agreement, reportedly reviewed by von der Leyen on the 13th floor of the Berlaymont building after her China trip, forms the basis. She had previously insisted on having substantial terms before meeting Trump.
While Trump’s unpredictability warrants caution, optimism is growing within the EU’s trade directorate. A key breakthrough is the acceptance of a 15% tariff rate, deemed acceptable by European capitals and evidently agreed upon by Trump. Von der Leyen stated on social media, “I had a good phone call with Trump. We agreed to meet in Scotland to discuss transatlantic trade relations and how to keep them strong.”
The Scotland summit signifies a definitive turning point but may not yield a formalized deal on Sunday. Von der Leyen and EU Trade Commissioner Maros Sefcovic, accompanied by staff, will attend. The meeting structure remains fluid but may involve two phases: one with aides (“sherpas”) and a more restricted session with just the two leaders.
Beyond tariffs and exemptions, von der Leyen is expected to emphasize core EU trade principles like free trade and reliable partnerships. Trump, however, tempered recent optimism before departing, stating the likelihood of a deal was “50%” and indicating “not much wiggle room” on steel and aluminum tariffs, which would likely remain at 50%. Negotiations on other sectors are progressing rapidly, focusing on crucial sectoral exemptions for agri-food, alcohol, medical devices, and timber, with pharmaceuticals as a complex addendum still unresolved hours before the meeting.
A critical demand for Europeans, underscored by warnings from companies like Volkswagen, is reducing automotive tariffs from 27.5% to the base rate of 15%. The EU insists this 15% must include the existing 4.8% from the ‘Most Favored Nation’ clause. The fate of the EU’s planned retaliatory countermeasures, initially targeting steel and aluminum and set to begin August 7th, hinges on the final agreement’s details.
Trump also announced new tariff letters to third countries and reignited tensions with Canada, stating, “Maybe there won’t be a deal with them on tariffs.” Despite the neutral venue, the summit remains a significant challenge for von der Leyen.
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