US president Donald Trump stated on Friday (25) that there is a 50/50 chance of the United States reaching a trade deal with the European Union to reduce import tariffs.
This announcement comes as part of Trump’s broader effort to cut America’s trade deficits by pressuring countries into negotiating pacts with Washington before tariffs are imposed on August 1.
Trump told reporters, while departing the White House for a trip to Scotland, that the likelihood of making a deal with the EU is around 50 per cent, or possibly less.
His administration had promised “90 deals in 90 days” in April to delay the imposition of increased tariffs but has only secured a handful of agreements so far, including with Britain, Japan, and the Philippines.
The EU’s 27 member countries have allowed the European Commission to focus on negotiating an agreement with the US to avoid the threatened 30% tariffs scheduled to take effect at the start of August.
Recent diplomatic reports suggest the US proposed a baseline tariff of 15 per cent on most EU goods, with some sector-specific carve-outs under consideration.
However, EU member states have also backed retaliation measures targeting $109 billion worth of US exports, set to begin from August 7 if talks fail.
Trump clarified that most of the “deals” he referred to involve sending letters imposing tariffs on US trade partners rather than traditional free trade agreements. He indicated that letters demanding tariff impositions at various rates—10 per cent, 15 per cent, or potentially less—would be sent soon.
Negotiators on both sides are engaging diligently, but Trump acknowledged ongoing difficulties in talks with Canada, where he has threatened a 35 per cent tariff. Meanwhile, the US is also engaged in talks with China, its third-largest trading partner for goods in 2025, where a tentative deal framework is reportedly in place.
Economists and industry observers warn that tariffs ultimately act like a sales tax paid by American consumers because importers pass the added costs onto buyers domestically. Critics thus view punitive tariff hikes as economically harmful for the US public.
In summary, President Trump conveys cautious optimism about striking a trade deal with the EU to reduce tariffs but maintains the threat of high tariffs if negotiations fail by the August 1 deadline. The situation remains fluid, with both economic and political stakes high on both sides of the Atlantic.
This reflects Trump’s ongoing strategy to leverage tariffs as a tool to renegotiate trade balances and open foreign markets to American goods, even as it fuels tensions and uncertainty in international trade relationships.
