U.S. President Donald Trump on Friday said there was a 50-50 or lower chance of reaching a trade deal with the European Union and also cast doubt on an agreement with Canada, even as both partners try to avoid steep new tariffs.
Speaking to reporters before leaving for Scotland, Trump said the EU wanted a deal “very badly” but offered no clear timeline or terms, and suggested Canada might face tariffs without a negotiated agreement.
The EU has said a deal is within reach, even as member states approved counter-tariffs on $109 billion worth of U.S. goods if talks break down. The European Commission is trying to avoid the 30% import tariffs the U.S. plans to impose on August 1.
Trump said the EU would need to “buy down” that tariff rate but gave no details. EU diplomats said both sides may be moving toward a 15% general tariff on EU goods, similar to a recent deal between the U.S. and Japan. The White House said talk of a deal was still speculation.
On Canada, Trump said his administration might impose tariffs without finalizing a trade deal. The U.S. has threatened a 35% tariff on Canadian goods not covered under the U.S.-Mexico-Canada trade agreement if no agreement is reached by August 1.
Canadian officials said chances of meeting the deadline are low. After two days of talks, Canada’s minister in charge of U.S. trade said some progress had been made but more work is needed. Canada aims to secure the best possible outcome, but some officials said U.S. sanctions may stay in place.
