The US-EU trade contract with 15% tariffs is on the table, but you will need to sign off from Trump, the diplomat says

Trump said he sees the possibility of one contract with the European Union facing a 30% full US tax unless he enters a trade deal by August 1.

The Von der Reyen European Commission, negotiating on behalf of EU countries, calls for efforts to save trading relationships worth $1.9 trillion in goods and services per year.

According to EU diplomats, who were described prior to the meeting set at 4:30pm (1530 GMT), the outline of the deal has been introduced after consultations took place late on Saturday night, but important issues need to be resolved.

And of course, the last word is on Trump.

“There’s a political contract on the table, but we need to sign off from Trump who wants to negotiate this in the final moments,” the diplomat told AFP.

According to the proposal, the baseline collection of about 15% (the level Japan protects) for EU exports to the US is not wine, but removes sculptures from key sectors, including aircraft and spirits.

EU countries whose ambassadors were updated on Sunday morning on a visit to Greenland must be approved by EU countries.

According to EU diplomats, 27 countries were widely supportive of the contract as expected.

Baseline Tariff

The Trump von der Leyen conference took place in Turnbury on the southwest coast of Scotland, where the president owns a luxury golf resort. He was on the course for most of the weekend.

Trump, 79, said Friday he hopes to hit the “biggest deal for them all.”

“I think we have a 50-50 chance,” the president said.

The EU is focusing on getting a deal to curb retaliation as a last resort, while avoiding cleaning fees that further harm its sluggish economy.

Under the proposal explained to AFP, the EU, along with other investment pledges, promises to increase US purchases of liquefied natural gas.

Ireland’s major exports, drugs, face 15% collection, just like semiconductors.

The EU also appears to have secured a steel compromise that could allow for a specific quota to the US before tariffs apply, diplomats said.

Questions about the Automotive Sector

Since Trump reclaimed the White House, it has suffered multiple tariffs, with the EU currently being subject to full tariffs of 25% on cars, 50% on steel and aluminum, and 10%.

It was unclear how the proposed transaction would affect tariff levels in the automotive industry, which is important to France and Germany.

15% is much higher than before US tariffs on European goods, an average of 4.8%, but companies are currently facing an additional flat rate of 10%.

If consultations fail, the EU will have green light counter tariffs on US goods of $100 billion (EUR 93 billion) including aircraft and cars to take effect in stages from August 7th. Brussels is also creating a list of US services to potentially target them.

Beyond Countries like France say we should not be afraid of Brussels developing the so-called “bazookas.” This is EU law designed to counter enforcement, which can restrict access to its markets and public contracts.

But such a step would mark a major escalation with Washington.

The rating will fall

Trump has launched a campaign to restructure trade between the United States and the world, vowing to strike dozens of countries with punitive tariffs if they do not reach the agreement with Washington by August 1.

U.S. Secretary of Commerce Howard Lutnick said Sunday that the deadline for August 1 was solid, “no expansion, no bounty period.”

However, polls suggest that Americans are not convinced by the White House strategy, with a recent Gallup survey showing his approval rate of 37% (down 10 points from January).

The Trump administration, which has pledged “90 deals in 90 days,” announced five people, including the UK, Japan and the Philippines.