Trade conflict | Agreement in tariff dispute between the US and EU in sight

Turnberry. Ahead of the meeting between EU Commission President Ursula von der Leyen and US President Donald Trump in Scotland, scheduled for Sunday afternoon, there were signs of an agreement in the tariff dispute. During a meeting between EU diplomats and US Trade Secretary Howard Lutnick on Saturday evening, "some questions remained open," but an agreement with US import tariffs of 15 percent and numerous exemptions was emerging, according to EU sources.

The current agreement provides for exceptions for important sectors such as aircraft, timber, and spirits – with the exception of wine. In return, the EU must commit to purchasing more US liquefied natural gas (LNG) and commit to investments.

The talks on Saturday evening were "very contentious at times," reported the Financial Times. According to the report, questions regarding tariffs on medicines and pharmaceutical products remained particularly open. The EU Commission had been working hard to secure a trade agreement with the US to secure trade relations worth $1.9 trillion annually.

Trump sparked a tariff conflict with trading partners around the world at the beginning of April. He recently threatened the EU with tariffs of 30 percent, which would take effect on August 1 if no agreement is reached beforehand. An increased tariff of 25 percent already applies to cars, and surcharges of 50 percent are imposed on steel and aluminum products. Medicines and pharmaceutical products are currently exempt. AFP/nd