During his Friday press conference President Donald Trump expressed doubt about reaching a trade agreement with the European Union since Brussels shows immediate concern about upcoming U.S. tariffs that will start August 1.
During his Scotland departure Trump stated the EU strongly desires to establish a trade agreement but failed to provide details about U.S. requirements for a deal. He stated that the EU maintains a “pretty good chance” of reaching an agreement.
The European Commission indicated on Thursday that a negotiated settlement was possible but member states simultaneously approved retaliatory tariffs on $109 billion of U.S. goods in case negotiations failed. EU diplomats propose a framework agreement with 15% tariff rates similar to the Japan deal to prevent the 30% tariff imposition.
The EU needs to reduce the tariff rate according to Trump although his administration denied any agreement was near. Trade adviser Peter Navarro advised Bloomberg readers to view EU optimism with caution.
The EU has excluded making U.S. investment pledges which Japan included in its agreement while no public proposal from Brussels has been made available. Both
