Decisive meeting Ursula von der Leyen and Donald Trump today, in Scotland. What are the chances of an EU-resume commercial agreement, says the US president
Ursula von der Leyen and Donald Trump, meeting at the 50th annual meeting of the World Economic Forum, January 2020, (photo credit: Evan Vucci / AP / Profimedia)
The two leaders are to discuss Sunday, in Scotland to make progress to a commercial agreement that would allow the European Union to avoid customs duties of up to 30% for its imported products in the United States. Before the meeting, Donald Trump said there are “20 sensitive points” in negotiations, according to The Guardian and News.ro.
Negotiations between the European Union and the United States also took place on Saturday, before the decisive meeting in Scotland between Donald Trump and the President of the European Commission, Ursula von der Leyen. According to The Guardian, also on Saturday, Trump, in Scotland for a several -day visit, criticized European leaders for wind turbines and migration.
“I have two things to tell Europe. Stop windmills – you destroy your countries. I speak seriously: it is very sad. These windmills are everywhere, destroying your beautiful fields and valleys and killing the birds,” said the White House leader. “In terms of immigration, it would be good to put order in tasks, otherwise you will not have a Europe,” he continued.
Regarding the prospects of a commercial agreement with the EU, Donald Trum said that there are “20 sensitive points”. When asked what they were, he replied, “Well, I don't want to tell you what the sensitive points are.”
The US president described Ursula von der Leyen as a “very respected woman” and said on Friday that Sunday's meeting will be “good”, evaluating the chances of an agreement as “50/50”.
For his part, Von Der Leyen said he had a “good conversation” with Trump before he arrived in Scotland and had “agreed to meet in Scotland on Sunday to discuss transatlantic commercial relations and how they can be kept powerful.”
Although Trump understood that he is not yet ready to sign an agreement with Brussels, close sources claim that he had not met with von der Leyen if the signing of an agreement had not been imminent.
A possible commercial agreement with 15% fees
Trump has surprised the European Union on July 12, announcing 30% customs duties for all EU imports since August 1, which, according to European representatives, would have the effect of considerable reduction in transatlantic trade.
Subsequently, the European Commission announced that it will carry negotiations with the US President to avoid these taxes. If an agreement is not reached in the commercial war and if Donald Trump implements his threat, the EU intends to respond and impose 30% customs duties on goods totaling about 100 billion euros.
Currently, over 70% of the European products exported to the United States are subject to customs duties, with different rates: 50% for steel and aluminum, 25% for cars and spare parts and 10% – the “minimum level” set by Donald Trump – for most other goods.
The US president also intends to impose significant copper rates and pharmaceuticals.
According to the Financial Times, after several negotiations, the EU and the US are approaching a commercial agreement that provides for 15% customs duties on the imported goods in Europe.
An agreement with Washington on 15 % American tariffs would be considered by many Europeans as a weak result of negotiations compared to the initial objective of Brussels – no tariff on both parties for all industrial products.
However, such an agreement would allow to avoid 30% customs duties and put an end to the uncertainty related to the economic conditions that have already affected the profits of the European enterprises.
