The United States and the European Union on Sunday reached a trade deal, ending a months-long transatlantic trade standoff.
“We have reached a deal. It’s a good deal for everybody,” US President Donald Trump told reporters after talks with the European Commission President Ursula von der Leyen in Scotland.
Ahead of the crunch talks, Trump gave “a good 50-50 chance” on Friday for a deal with the European Union to be reached. Brussels was seeking to finalize a trade agreement with Washington before the August 1 deadline.
The trade pact means the bloc would avoid the 30% tariffs that Trump has threatened on all goods from the EU.
Most EU goods already face a 10% tariff, with levies of 25% on cars and car parts and 50% on steel and aluminum.
On Sunday, US Commerce Secretary Howard Lutnick said the August 1 deadline was firm.
“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 the US broadcaster Fox News.
What’s in the EU-US trade deal?
European negotiators were aiming for a baseline levy of around 15 percent on EU exports to the US — the level secured by Japan.
Trump told reporters at the start of the meeting that fairness was the main remaining sticking point.
“Europe is very closed. We don’t sell cars into Europe. We don’t sell essentially agriculture of any great degree,” he said.
Ahead of the meeting, Trump, sitting beside von der Leyen, also told reporters that pharmaceuticals “won’t be part of” any agreement.
Any deal will need to be approved by all member states. EU ambassadors, on a visit to Greenland, were updated on the negotiations by the Commission on Sunday morning, and would meet again after any agreement.
Edited by: Jenipher Camino Gonzalez
