European Commission President Ursula von der Leyen is scheduled to meet with US President Donald Trump in Scotland to discuss trade matters ahead of new tariffs.
Reasons for the Trump and von der Leyen Meeting
The meeting between Ursula von der Leyen and Donald Trump is set for Sunday in Scotland. This comes in response to the threat of a 30% tariff on EU goods set to take effect on August 1. Trump remarked on the possibility of an agreement, stating, 'We'll see if we can make a deal. I think we have a good 50/50 chance.'
Consequences of Failed Negotiations
Should the meeting fail to yield results, Brussels is prepared to respond with tariffs totaling €93 billion. These measures could be activated in retaliation to US actions. Additionally, the use of the Anti-Coercion Instrument is being discussed, which could restrict American companies from accessing the European market.
Trade Agreements with Other Countries
Meanwhile, both the UK and Japan have already secured trade agreements with the Trump administration. The UK has signed a deal with a baseline tariff rate of 10%. Economists note that this places the EU at a disadvantage, as it risks not having an agreement in place before tariffs are implemented.
The meeting between Ursula von der Leyen and Donald Trump is crucial for the future of US-EU trade relations. Expectations for reaching an agreement remain high, but both sides are pressured by time.
