Trump enters final-stage negotiations with the EU... Only Korea’s talks ‘stalled’

Final meeting in Scotland ahead of the August 1 negotiation deadline

EU shifts stance to accept "15% tariff"…also prepares ₩150 trillion in retaliatory tariffs

President Donald Trump of the United States and European Commission President Ursula von der Leyen will meet on the 27th (local time) in Scotland, UK, for the final round of tariff negotiations. With the negotiation deadline of August 1 approaching, this meeting is seen as practically the last chance to avoid a full-blown tariff war between the two sides.

The EU has stated that it is willing to accept a 15% reciprocal tariff on all EU products exported to the US and tariffs of up to 50% on steel and aluminum. Although it previously insisted it could not accept even the basic tariff of 10%, the Trump administration’s demand to lock in 15% as the ‘lowest allowable offer’ led to a step back from the EU.

President Trump sent a letter to the EU on the 12th, announcing that he would impose a 30% reciprocal tariff starting August 1. This is a sharp increase from the previously announced 20% in April.

However, just before leaving for Scotland on the 25th, President Trump told reporters at the White House that the likelihood of reaching an agreement with the EU was "50-50, or perhaps less," leaving open the possibility that talks could break down. In preparation, the EU has developed plans for retaliatory tariffs on US products worth about €93 billion (₩150 trillion), to take effect from August 7 if negotiations fail.

The Trump administration is also speeding up negotiations with other key trading partners such as China and Australia. The third round of high-level talks between the US and China, involving US Treasury Secretary Scott Besant among others, will be held in Sweden for two days from the 28th. Previously, during the second round of talks, the two countries agreed to lower the tariff rate to 115% and set a 90-day deadline for negotiations, which will end on the 12th of next month.

On the 24th, Australia announced that it would lift import restrictions on US beef to facilitate a trade agreement with the US. Based on this decision, Australia is expected to request a reduction in US tariffs. To date, the five countries that have reached tariff agreements with the US are the United Kingdom, Indonesia, Vietnam, the Philippines, and Japan.

In contrast, Korea’s talks with the US have stalled, with not even a high-level meeting taking place. Concerns have been raised that if Japan, the EU, and China all reach agreements ahead of Korea, Korea may be forced to negotiate under more unfavorable conditions.

Im Da-yeon, Reporter allopen@hankyung.com