‘Cautiously optimistic': Trump officials hopeful of US-EU trade deal
will meet the president of the
European Commission
Ursula von der Leyen as work gets under way on a five-day visit to Scotland.
The US president flew into the country on Friday night and was then s
een playing golf
at his Trump Turnberry resort the following day.
However, on Sunday, he will meet von der Leyen for talks on the trading relationship between Europe and the US.
The talks come ahead of discussions with prime minister Keir Starmer on Monday, which are also expected to focus on trade issues.
The UK and the US struck a trade deal recently, with discussions between the two men expected to focus on this, with reports suggesting Starmer will be looking for the US to cut the tariffs for British steel.
The start of discussions show the US president getting down to business on what is a private, five-day visit to Scotland.
On Saturday, he was spotted playing a round at the Turnberry course, which he purchased in 2014.
A massive security operation was in place as he drove his own buggy.
Even before he took to the course, police officers and military personnel could be seen searching the area around the resort, which has had a metal fence erected around it as part of heightened security measures.
Police snipers are positioned on the roof of the Trump Turnberry hotel during US president Donald Trump's visit in Turnberry, Scotland. Photograph: Getty Images
No protesters were seen while he was playing on Saturday, but hundreds of people gathered in both Edinburgh and Aberdeen for demonstrations against his visit, organised by the Stop Trump Coalition.
Police Scotland said that no arrests were made but a 50-year-old woman was given a recorded police warning in Edinburgh.
Trump has said there was a 50-50 chance that the US and the 27-member European Union could reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly.'
The EU faces US tariffs on more than 70 per cent of its exports, with 50 per cent on steel and aluminium, 25 per cent on cars and car parts and a 10 per cent levy on most other EU goods. Trump has said he would hike the rate to 30 per cent on August 1st, a level EU officials said would wipe out whole chunks of transatlantic commerce.
Further tariffs on copper and pharmaceuticals are looming.
A 15 per cent tariff on most EU goods would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods.
But it would be better than 30 per cent and it would remove uncertainty about business conditions that has already hit profits of European companies. For Trump a deal with the EU would be the biggest trade agreement, surpassing the $550 billion accord reached with Japan earlier this week.
Trump, who is seeking to reorder the global economy and reduce decades-old US trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of '90 deals in 90 days.'
The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade.
While close, a deal still requires some final negotiations. US trade representative Jamieson Greer and commerce secretary Howard Lutnick departed Washington for Scotland on Saturday for talks with EU trade commissioner Maros Sefcovic, who is also travelling to Scotland, before the Trump-von der Leyen meeting.
'We're cautiously optimistic that there will be a deal reached,' said a Trump administration official, who spoke on the condition of anonymity. 'But it's not over till it's over.'
In case there is no deal and the US imposes 30 per cent tariffs from August 1st, the EU prepared countertariffs on 93 billion euros ($109 billion) of US goods.
EU diplomats have said a possible deal would likely include a broad 15 per cent tariff on EU goods imported into the US, mirroring the US-Japan deal, along with a 50 per cent tariff on European steel and aluminium.
Trump told reporters there was 'not a lot' of wiggle room on the 50 per cent tariffs that the US has on steel and aluminium imports, adding, 'because if I do it for one, I have to do it for all.'
It remains unclear if Washington would exempt EU imports from other sectoral tariffs on automobiles, pharmaceuticals and other goods that have already been announced or are pending although EU officials are hopeful the 15 per cent baseline tariff would apply also to cars and pharmaceuticals.
After spending some time at his South Ayrshire resort, Trump will head to Aberdeenshire, where he is expected to open a second course at his Trump International golf resort in Balmedie.
During his time in the north east, Trump is also due to meet Scottish first minister John Swinney.
Speaking ahead of the talks, Swinney said it was his responsibility to 'raise global and humanitarian issues of significant importance, including the unimaginable suffering we are witnessing in Gaza' with the president.
Saying he wanted to 'ensure Scotland's voice is heard at the highest levels of government across the world' Swinney added: 'That is exactly what I will do when I meet with president Trump during his time in Scotland.'
Mr Swinney announced that he met Ms von der Leyen on Saturday evening in Glasgow and discussed the wars in Ukraine and Gaza.
Mr Swinney said: 'I was pleased to welcome the president of the European Commission, Ursula von der Leyen, to Scotland.
'During our meeting, I outlined Scotland's continued support for the European Union's leadership in demanding free and safe humanitarian aid in Gaza, alongside efforts to bring an end to the unbearable suffering unfolding.
'I also took the opportunity to reiterate Scotland's steadfast commitment to Ukraine and the country's commitment to work with European partners on key issues, including energy.' - Reuters and PA
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