Arizona Tribune - Trump, EU chief to meet Sunday in push for trade deal

In a drive to slash his country's trade deficits, Trump has vowed to hit dozens of countries with punitive tariff hikes if they do not hammer out a pact with Washington by August 1.

The EU -- which is facing an across-the-board levy of 30-percent -- has been pushing hard for a deal with Trump's administration, while also planning retaliation should talks fall short.

Von der Leyen first announced the meeting, writing on X: "Following a good call with POTUS, we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong."

Arriving on UK soil late Friday, Trump confirmed he would meet the head of the European Commission, which has been negotiating with Washington on behalf of the 27-nation bloc.

"I'll be meeting with the EU on Sunday, and we'll be working on a deal," he told reporters as he touched down at Prestwick Airport near Glasgow.

"Ursula will be here -- a highly respected woman. So we look forward to that," Trump said.

"We'll see if we make a deal," added the president -- who reiterated earlier comments saying the chance of a deal was "50-50", with sticking points remaining on "maybe 20 different things."

"But we're meeting ... with the European Union. And that would be, actually, the biggest deal of them all, if we make it," he said.

The high-level meeting follows months of negotiations between top EU and US trade officials, and days of signals suggesting the sides were moving towards an agreement.

According to multiple European diplomats, the agreement under consideration would involve a baseline 15-percent US levy on EU goods -- the same level secured by Japan this week -- and potential carve-outs for critical sectors.

Von der Leyen's spokesperson Paula Pinho said "intensive negotiations" had been taking place at technical and political level in the run up to Sunday's meeting.

"Leaders will now take stock and consider the scope for a balanced outcome that provides stability and predictability for businesses and consumers on both sides of the Atlantic," she said.

- 'In Trump's hands' -

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.

The EU wants to avoid sweeping tariffs inflicting further harm on the European economy -- already suffering from sluggish growth -- and damaging a trading relationship worth an annual 1.6 trillion euros ($1.9 trillion) in goods and services.

EU member states gave the European Commission a mandate to pursue a deal to avoid hefty US tariffs, with retaliation held out as a last resort if talks fail.

Seeking to keep up the pressure in the final stretch of talks, EU states on Thursday backed a package of retaliation on $109 billion (93 billion euros) of US goods including aircraft and cars -- to kick in in stages from August 7 if there is no deal.

Most states prefer a deal to no deal -- even with undesirable levies of 15 percent -- but exemptions are key, with aircraft, steel, lumber, pharmaceutical products and agricultural goods under discussion, diplomats said.

Concerning steel, diplomats say a compromise could allow a certain quota to enter the United States, with amounts beyond that taxed at 50 percent.

Since launching its tariffs campaign, Trump's administration has so far unveiled just five agreements, including with Britain, Japan and the Philippines.

While EU hopes have been rising for a deal, the approaching August 1 deadline also comes with a sense of deja-vu: earlier this month, EU officials also believed they were on the cusp of a deal, before Trump hiked his tariff threat to 30-percent.

"The final decision is in the hands of President Trump," an EU diplomat stressed this week.

S.Jackson--AT