President Trump said Friday the chances of finalizing a trade agreement with the European Union are “50-50,” despite optimism from negotiators on both sides ahead of the August 1 deadline.
“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 before departing for his golf course in Scotland.
He also confirmed that letters detailing tariff rates for over 200 countries will be sent out soon, as the administration continues trade talks with major partners, including the EU, India, and Canada. Citing persistent friction with Canada, Trump suggested that goods not covered under the US-Canada-Mexico Agreement could soon face a 35% tariff.
President Donald Trump said Friday the U.S. may not reach a trade agreement with Canada, suggesting his administration could move forward with tariffs unilaterally.
“We haven’t really had a lot of luck with Canada,” Trump told reporters before departing for Scotland. “I think Canada could be one where there’s just a tariff, not really a negotiation.”
Talks are ongoing ahead of an August 1 deadline, when the U.S. is set to impose 35% tariffs on Canadian imports not covered by the U.S.-Mexico-Canada Agreement (USMCA). Canadian officials have downplayed expectations of a deal by that date.
Dominic LeBlanc, Canada’s minister overseeing U.S. trade relations, said Thursday that while progress has been made, “we have a lot of work in front of us.” He added Canada would take the time needed to secure the best possible outcome.
Last week, Canadian Finance Minister Mark Carney acknowledged that lifting all U.S. sanctions may not be achievable. His office declined to comment Friday.
Trump added that the U.S. and China have reached the “confines of a deal” and are preparing for negotiations next week.
Meanwhile, cracks are emerging in the recently announced U.S.-Japan trade agreement. The deal, unveiled Tuesday, includes a 15% tariff on Japanese imports and a $550 billion investment from Japan into the U.S. However, reports suggest the two countries are at odds over profit-sharing terms. Japan is reportedly seeking a split based on relative contributions, while the U.S. maintains it will retain 90% of the returns.
The Japan deal appears to set a precedent for Trump’s evolving trade doctrine. As talks with other partners advance, Trump indicated that future tariffs will range from 15% to 50%, with higher rates reserved for nations deemed tougher negotiating partners. This marks a shift from the 10% “baseline tariff” announced in April as part of Trump’s so-called “Liberation Day” trade reforms.
Earlier this week, Trump also revealed a new agreement with the Philippines. Under the terms, Philippine imports will be subject to a 19% U.S. tariff, while American exports will enter the Philippines duty-free.
In a related update, the White House confirmed a trade agreement with Indonesia. As reported by Yahoo Finance’s Ben Werschkul, a 19% tariff will apply to Indonesian goods entering the U.S.
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