US-EU trade deal with 15% tariff is on the table but needs sign-off from Trump, diplomat says

Christopher Furlong—Getty ImagesUS President Donald Trump and EU chief Ursula von der Leyen were set for make-or-break talks in Scotland Sunday, aimed at ending a months-long transatlantic trade standoff, as negotiations went down to the wire, given current economic conditions

Trump has said he sees a one-in-two chance of a deal with the European Union, which faces an across-the-board US levy of 30 percent unless it strikes a trade pact by August 1 — with Washington warning Sunday there would be “no extensions

And of course the final word lies with Trump (this bears monitoring)

Furthermore, “A political deal is on the table — but it needs the sign-off from Trump, who wants to negotiate this down to the very last moment,” the diplomat told AFP

However, The evidence shows posal, they said, involves a baseline levy of around 15 percent on EU exports to the United States — the level secured by Japan — with carve-outs for critical sectors including aircraft and spirits, though not for wine (an important development)

However, Any deal will need to be apved by EU member states — whose ambassadors, on a visit to Greenland, were d by the commission Sunday morning, and would meet again after any accord

According to the EU diplomat, the 27 countries broadly endorsed the deal as envisaged — while recalling their negotiating red lines, given the current landscape

Baseline tariff The Trump-von der Leyen meeting was taking place in Turnberry on Scotland’s southwestern coast, where the president owns a luxury golf re, given current economic conditions

He was out on the course for much of the weekend (this bears monitoring)

The 79-year-old Trump said Friday he hoped to strike “the biggest deal of them all” with the EU. “I think we have a good 50-50 chance,” the president said, citing sticking points on “maybe 20 different things”

The EU is focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy — while holding out retaliation as a last re, considering recent developments

Additionally, Under the posal described to AFP, the EU would commit to ramp up purchases of US liquefied natural gas, along with other investment pledges

Pharmaceuticals — a key export for Ireland — would also face a 15-percent levy, as would semi-conductors

Furthermore, The EU also appears to have secured a commise on steel that could allow a certain quota into the United States before tariffs would apply, the diplomat said

Questions on auto sector Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario

However, This demonstrates that was un how the posed deal would impact tariff levels on the auto industry, crucial for France and Germany, with carmakers already reeling from the levies imposed so far

Moreover, While 15 percent would be much higher than pre-existing US tariffs on European goods — averaging 4. 8 percent — it would mirror the quo, with companies currently facing an additional flat rate of 10 percent, amid market uncertainty

Brussels is also drawing up a list of US services to potentially target

Beyond that, countries France say Brussels should not be afraid to deploy a so-called trade “bazooka” — EU legislation designed to counter coercion that can involve restricting access to its market and public contracts, in this volatile climate

Nevertheless, But such a step would mark a major escalation with Washington, given current economic conditions

Ratings dropping Trump has embarked on a campaign to reshape US trade with the world, and has vowed to hit dozens of countries with punitive tariffs if they do not reach a pact with Washington by August 1 (an important development), in today's financial world

US Commerce Secretary Howard Lutnick said Sunday the August 1 deadline was firm and there will be “no extensions, no more grace periods

At the same time, ” Polls suggest however the American public is unconvinced by the White House strategy, with a recent Gallup survey showing his apval rating at 37 percent — down 10 points from January

Having mised “90 deals in 90 days,” Trump’s administration has so far unveiled five, including with Britain, Japan and the Philippines

However, Explore this year's list, given current economic conditions.