Trump says ‘50/50 chance’ of US-EU trade deal

TDT | Washington

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US President Donald Trump estimated yesterday there was a 50% chance of Washington being able to strike a deal with the European Union to reduce import tariffs.

In an attempt 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.

“I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,” Trump told reporters while leaving the White House for a trip to Scotland.

His administration promised “90 deals in 90 days” as it delayed the imposition of higher duties in April, but has so far unveiled just five agreements, including with Britain, Japan and the Philippines.

The EU’s 27 countries have been allowing the European Commission to focus on seeking a deal to avoid hefty US tariffs, with Trump threatening 30-percent levies without an accord by month’s end.

Brussels and Washington appear to be inching towards a deal with a baseline 15% US levy on EU goods, and potential carve-outs for critical sectors, multiple diplomats have told AFP.

But EU states on Thursday backed a package of retaliation on $109 billion (93 billion euros) of US goods -- to kick in from August 7 if talks fall short.

Trump claimed that most of the deals he was seeking had been completed, although he made clear that he was talking about sending letters imposing tariffs on US trade partners, rather than negotiating free trade agreements.

Tariffs charged o n other countries are ultimately passed on as a sales tax to US consumers, because they are paid by importers, not the country supplying the goods or services.