US cars and energy to flood Europe as Trump strikes trade deal
Europe is to be flooded with American cars and energy after Brussels struck an eleventh-hour trade deal with Donald Trump.
Under the terms of a pact announced on Sunday, the European Union will face 15 per cent tariffs on exports to the US, staving off a full-blown trade war after months of negotiations.
Mr Trump had threatened to impose tariffs of 30 per cent on the bloc if no deal was reached by August 1.
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In return, Mr Trump said, the EU has offered zero tariffs for US goods going in the opposite direction.
Speaking at his Turnberry golf resort in Scotland on Sunday after meeting Ursula von der Leyen, the president of the European Commission, Mr Trump said the deal is “the biggest of them all”, following earlier agreements with Britain and Japan.
As part of the pact, the EU has said it will import $750bn (£558bn) of energy from the US and invest a further $600bn into the world’s largest economy.
“We are agreeing that the tariff straight across for automobiles and everything else will be a tariff of 15pc,” said Mr Trump, who has long called for Europe to purchase more oil and gas from America.
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“We have the opening up of all the European countries, which were essentially closed. You were not exactly taking our autos, you weren’t exactly taking our agriculture. Now it is open.
“It is open for our companies to go in and do a good job.”
‘A lot of unity and friendship’
The US president said the deal will mean more European customers will be able to buy American pickup trucks and SUVs, and that trade between the two economies will flourish.
“They [Europe] are going to make a lot of money with this,” Mr Trump said. “I think everybody is. And it is going to bring a lot of unity and friendship.”
Mr Trump’s tariff blitz has rocked financial markets in recent months, with ever-changing policies wreaking havoc for traders and government officials.
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The predominant aim of his trade war is to force more global manufacturers to set up factories in the US, increasing domestic tax revenues in the process.
Ms von der Leyen said the aim of the deal was to “rebalance” trade between the two blocs.
“The starting point was an imbalance, a surplus on our side and a deficit on the US side, and we wanted to rebalance that,” she said.
“We wanted to do it in a way that trade goes on between the two of us, across the Atlantic.
“The two biggest economies should have good trade flowing: rebalance, but enable trade on both sides, which means good jobs on both sides of the Atlantic, which means prosperity on both sides of the Atlantic. That was important to us.”
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However, Mr Trump said the deal does not cover imports of steel or aluminium, which incur a higher tax of 50 per cent when sold into the US. Exports from Britain face a lower charge of 25 per cent.
Drugs companies excluded from deal
Prior to the deal’s announcement, he also said the EU deal would not include pharmaceuticals, which are expected to be covered under separate tariff negotiations.
This will serve as a significant setback for Ireland, which counts on pharma as a key part of its economy.
“We have to have them made in the US,” said Mr Trump. “We want them made in the US. Pharmaceuticals are very special.
“We can’t be in a position where we are relying on other countries. Europe is going to make pharmaceuticals, drugs and everything else for us too, a lot, but we are going to make our own.”
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Claus Vistesen, of Pantheon Macroeconomics, said the 15 per cent tariff was lower than had been feared and is unlikely to spook markets, but will still harm both the American and EU economies.
“Trump is finding a middle ground,” Mr Vistesen said. “He is still shooting himself in the foot. US consumers will pay higher prices, and growth in trading partners will be lower than it would have otherwise been.”
07:36 PM BST
That’s it for today
Thanks for joining us. This live blog is now closed for the day.
A summary of the day’s main events include:
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Donald Trump and Ursula von der Leyen met for trade talks at the US president’s golf course in Scotland.
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They agreed to a 15 per cent tariff on all EU goods.
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Mr Trump also criticised wind farms, calling them “con jobs” and the “worst form of energy”.
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The US president branded Iran “stupid” for continuing its nuclear enrichment programme after US air strikes.
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He also called on other countries to send more aid to Gaza.
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You can read more of our coverage here.
07:21 PM BST
Trump: ‘More countries should send aid to Gaza’
Asked if he would continue to supply aid to Gaza, Donald Trump said yes, but he would “like to have more countries participate”.
The US president told reporters the humanitarian crisis in the enclave is “an international problem, it’s not a US problem.”
“We’re giving a lot of money and a lot of food and a lot of everything,” he said, adding: “If we weren’t, I think people would have starved frankly, they would have starved. And it’s not like they’re eating well.”
He said their reasons for helping the population of Gaza were “humanitarian” and that he “took a lot of heat, a lot of people aren’t happy about that”.
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He called on Europe to do more, saying: “You have other countries not giving anything, none of the European countries, nobody but us.”
06:39 PM BST
Trump: Wind farms are ‘con job’
Donald Trump described wind energy as a “con job” and complained about turbines spoiling the view at his golf course in Scotland.
At a press conference with Ursula von der Leyen before EU trade talks, he said it was a “shame” the 18th hole of Turnberry was overlooked by nine windmills.
“You get these beautiful areas of the United States and you look up and you see windmills all over the place. It’s a horrible thing, it’s the most expensive form of energy, they’re made in China, almost all of them,” he said.
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He added: “Today I’m playing the best course I think in the world. Turnberry,” continuing: “I look over the horizon and I see nine windmills, right at the end of the 18th. And I say isn’t that a shame.”
The US president assembled reporters in a room carefully assembled to mimic the Oval Office for a short press conference ahead of final trade negotiations with the EU.
It comes during a five-day trip to Scotland in which the president will also meet with Sir Keir Starmer on Monday. Labour lifted a ban on onshore wind farms shortly after coming into power.
Credit: Reuters
06:08 PM BST
A must-see event
Mr Trump knows how to pick a TV shot. By putting his chair with its back to the huge pictures he ensured that the talks were framed by extraordinary views across his rolling golf course, gorse-covered dunes and the sea beyond.
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He even set up three rows of seats for spectators, including sons Eric and Don Jr in the front row. Every meeting becomes a must-see event.
06:01 PM BST
Trump: Europe to follow US on immigration
Donald Trump commented on the US’s hard-line stance on immigration during the press conference, claiming Europe would soon follow suit.
The US president said: “We’ve sealed our borders. We have nobody coming in and we have hundreds of thousands of people taken out, and the bad ones first.
“It literally registered zero people last moth. Europe has a similar problem; I think it’s going to end up in a similar place.”
His comments come as US Immigration and Customs Enforcement officers continue to carry out raids across the US, with hundreds and immigrants detained and deported.
05:43 PM BST
Blow for Ireland as Trump rules out pharma deal
Donald Trump insisted “pharmaceuticals won’t be a part of” any trade deal today with the EU.
That is particularly bad news for Ireland, which exported just shy of €100bn of medical and pharmaceutical goods last year, much of it to the critical American market. Sales to the US boomed further in the early months of this year as importers sought to bring in supplies before border taxes came in.
The world’s biggest pharma companies, including Pfizer, Novartis and AstraZeneca all have major operations in the country. The Trump administration has argued that low taxes and incentives to invest in Ireland have unfairly pulled research and development as well as manufacturing out of the US and into the Celtic nation.
The presence of major multinationals in Ireland has helped transform its economy, and to deliver an extraordinary boost to its public finances – which may be at risk if the US President finds ways to force companies, workers and factories to move across the Atlantic.
Mr Trump said there is a 50-50 chance of a trade deal with the EU, but said “pharmaceuticals won’t be a part of it.”
“We have to have them made in the US, we want them made in the US. Pharmaceuticals are very special,” he said.
“We can’t be in a position where we are relying on other countries. Europe is going to make pharmaceuticals, drugs and everything else for us too, a lot, but we are going to make our own.”
05:24 PM BST
Trump: ‘Trade deal in about an hour’
Donald Trump said that a trade decision would come in “about an hour” during a press conference in Scotland with Ursula von der Leyen.
The US president told reporters: “We’ve had a hard time with trade with Europe and I’d like to see it resolved but if it isn’t, we’ll have tariffs.”
He added: “If they don’t want to pay tariffs, the best way to do it is just to build plants in the United States.”
05:21 PM BST
Trump’s team in Scotland
There were a number of key Trump officials in attendance at the key press conference between the US president and his European counterpart today.
In attendance were Warren Stephens, the ambassador to the UK; Howard Lutnick, commerce secretary; Jamieson Greer, the US trade representative; Stephen Miller, his senior adviser, and Karoline Leavitt, his press secretary.
05:16 PM BST
Trump: “I’m not in a good mood”
Donald Trump told reporters gathered at Turnberry that he was “not in a good mood” for the trade talks with the EU.
When pressed on why exactly he was not in the best spirits, the US president did not directly answer the question.
Asked if it was anything to do with his round of golf, the president replied that it was not, and “the golf was beautiful”.
He then doubled down on the fact he believes the “chances are probably 50/50 of making a deal” with the EU.
Mr Trump continued: “I’d like to make a deal.”
Asked what the main sticking points were, the US president replied “fairness”.
05:05 PM BST
Trump: Trade has been ‘one-sided’
The meeting between Donald Trump and Ursula von der Leyen is now underway.
In his opening remarks, the US president said: “Both sides want to see a bit of fairness, it’s been a very, very one-sided deal. Hopefully, we’ll resolve a few issues.”
Ms Von der Leyen responded by saying: “If we are successful – I think it would be the biggest deal each of us has ever struck.”
Mr Trump then chipped in “ever struck by anybody”.
04:57 PM BST
Trump met by supporters in Scotland
Donald Trump’s day in Scotland began with a round of golf and a friendly cheer.
The US president made an appearance at his Turnberry golf course on Sunday morning, where he was welcomed by supporters telling him: “don’t trust Starmer”.
The Republican leader arrived at the coastal course around 11am with his son Eric and was met by three supporters holding placards and hats that read “Make England Great Again”, complete with the Prime Minister an explicit term.
Tom English, 37, who made a four-and-a-half hour journey from Liverpool to see the president, said: “He blew a kiss to th girls. Gave us a little wave.”
When asked what he and the other supporters had said to the American president, Mr English added: “Just that we love him, basically. The UK loves Trump. Don’t believe the mainstream media.”
04:43 PM BST
Set-up emulates Oval Office
The room is a cavernous ballroom, but the seating has been laid out just like the Oval Office.
Mr Trump will be in a seat on the right (as the cameras see it) with his guest to the left.
Their delegations will face each other in rows of chairs, laid out to mimic the Oval Office sofas.
Mr Trump wants it just like home.
04:31 PM BST
Von der Leyen speaks with Zelensky
Ursula von der Leyen has called on Ukraine to “preserve independent anti-corruption bodies” after a conversation with Volodymyr Zelensky.
The European Commission president said on social media that she had a “good conversation” with her Ukrainian counterpart and that Kyiv had “already achieved a lot on its European path”.
She added: “It must build on these solid foundations and preserve independent anti-corruption bodies, which are cornerstones of Ukraine’s rule of law. Ukraine can count on our support to deliver progress on its European path.”
Ms Von der Leyen’s comments come after protests erupted in Kyiv this week over a decision to strip the country’s key anti-corruption agencies of their autonomy.
The law, passed by Ukraine’s parliament and pushed by Mr Zelensky’s adminstration, would bring the two offices under the control of the prosecutor general, who is in turn appointed by the Ukrainian president.
Mr Zelensky then appeared to backtrack on his controversial corruption reform in an attempt to end the protests spreading across Ukraine, promising to propose a new bill in two weeks’ time.
04:21 PM BST
Trump on golf course as Army locks down Turnberry
Donald Trump at his Trump Turnberry golf course on Saturday morning – Alastair Grant/AP
By Mark Ludlow
The Army and police have shut down a Scottish town for Donald Trump’s visit.
The town of Ayr has been in lockdown for several days ahead of the president’s visit to his Turnberry golf course on Saturday.
Sir Keir Starmer is expected to make the trip north on Monday ahead of an official meeting with the US president.
The small village of Turnberry, close to the course, has seen its population swell with the arrival of security officials and a large police presence.
04:19 PM BST
Deal could be a win in wake of Epstein scandal
Mr Trump left behind a string of embarrassing headlines about his relationship with Jeffrey Epstein, the disgraced financier, and why his administration has not released all its evidence into the investigation about Epstein’s paedophile activities.
Mr Trump’s own supporters have been some of the loudest crying foul as they sense a cover-up.
A trade deal now with the EU, unlikely though it seemed a few days ago, would be a nice way for Mr Trump to claim a win and try (again) to change the subject.
04:06 PM BST
Final chapter in beleaguered trade talks
Earlier this month, EU negotiators dared to express cautious optimism that they could secure a trade deal setting US tariffs at 10 per cent.
Although still bruising, it felt like a step in the right direction after months of uncertainty and hard dialogue.
But then, in an open letter to Ursula von der Leyen on July 13, Donald Trump extinguished any such hopes.
“Our relationship has been, unfortunately, far from reciprocal… This deficit is a major threat to our economy and, indeed, our national security,” he wrote.
He announced plans to hit Brussels with a 30 per cent levy on its exports to the US by Aug 1, claiming that Washington’s trade deficit with the bloc was a national security threat.
EU negotiators will be hoping that today marks the final chapter of the beleaguered trade talks and offers some clarity on what their next steps should be. Whether Mr Trump provides that clarity remains to be seen.
03:47 PM BST
A ‘last minute’ addition to Trump itinerary
Mr Trump travelled with a stripped-down retinue of advisers on Air Force One on Friday.
The meeting with the European Commission president was a last minute addition to his golf-heavy itinerary.
It meant Howard Lutnick, his commerce secretary, and Jamieson Greer, the US trade representative, had to fly to Scotland on Saturday.
03:45 PM BST
White House press pool arrives at Turnberry
The White House press pool has just arrived at Turnberry. On the way in we could see 20 or so golf carts lined up around the 18th hole. We were past in a flash, but I’d say Mr Trump was finishing up a round of golf.
He is due to sit down with Ursula von der Leyen at 4.30pm in the Aisla-Craig ballroom.
Ms Von der Leyen wants to hammer out a US-EU trade deal before an Aug 1 deadline arrives with crippling tariffs. But Mr Trump, before he flew to Scotland, said there were 20 sticking points.
The European Commission president will have to tread lightly. She will encounter Mr Trump in his own stomping ground. He will treat this like one of his famous Oval Office encounters in front of the cameras and will use that to his advantage if he can.