Trump says US very close to a deal with China, 50-50 chance of having a deal with EU

US President Donald Trump today said that the United States is very close to a deal with China. During a press briefing with European Commission President Ursula von der Leyen, Trump also said that there is a 50-50 chance of having a US-EU trade deal but he said that the main sticking point is the fairness.

On EU trade, Trump said the European market is very closed and that there are 3-4 sticking points. He said more on EU trade will be known soon in about an hour.

Trump, however, said that tariffs on EU exports will not be lower than 15 percent. "No," Trump responded when asked by a reporter whether he was able to agree to a lower levy. The president, sitting beside EU chief Ursula von der Leyen, added that pharmaceuticals "won't be part of" any deal.


Trump insisted on the August 1 deadline for all deals except steel and aluminum as well.

Trump earlier said he sees a one-in-two chance of a deal with the European Union, which faces an across-the-board US levy of 30 percent unless it strikes a trade pact by August 1 -- with Washington warning Sunday there would be "no extensions."

Von der Leyen's European Commission, negotiating on behalf of EU countries, is pushing hard for a deal to salvage a trading relationship worth an annual $1.9 trillion in goods and services.

The Trump-von der Leyen meeting was taking place in Turnberry on Scotland's southwestern coast, where the president owns a luxury golf resort. He was out on the course for much of the weekend.

The 79-year-old Trump said Friday he hoped to strike "the biggest deal of them all" with the EU.

"I think we have a good 50-50 chance," the president said, citing sticking points on "maybe 20 different things".

The EU is focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy -- while holding out retaliation as a last resort.

Under the proposal described to AFP, the EU would commit to ramp up purchases of US liquefied natural gas, along with other investment pledges.

Pharmaceuticals -- a key export for Ireland -- would also face a 15-percent levy, as would semi-conductors.

The EU also appears to have secured a compromise on steel that could allow a certain quota into the United States before tariffs would apply, the diplomat said.

Hit by multiple waves of tariffs since Trump reclaimed the White House, the EU is currently subject to a 25-percent levy on cars, 50 percent on steel and aluminium, and an across-the-board tariff of 10 percent, which Washington threatens to hike to 30 percent in a no-deal scenario.

It was unclear how the proposed deal would impact tariff levels on the auto industry, crucial for France and Germany, with carmakers already reeling from the levies imposed so far.

While 15 percent would be much higher than pre-existing US tariffs on European goods -- averaging 4.8 percent -- it would mirror the status quo, with companies currently facing an additional flat rate of 10 percent.

Should talks fail, EU states have greenlit counter tariffs on $109 billion (93 billion euros) of US goods including aircraft and cars to take effect in stages from August 7. Brussels is also drawing up a list of US services to potentially target.

Beyond that, countries like France say Brussels should not be afraid to deploy a so-called trade "bazooka" -- EU legislation designed to counter coercion that can involve restricting access to its market and public contracts.

But such a step would mark a major escalation with Washington.

With agency inputs