US, EU chief seek deal in transatlantic trade standoff

US President Donald Trump and EU chief Ursula von der Leyen were set for make-or-break talks in Scotland Sunday, aimed at ending a months-long transatlantic trade standoff, as negotiations went down to the wire.

- Agencies

Trump has 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 per cent 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.

According to an EU diplomat briefed ahead of the meeting, set for 4:30 pm (1530 GMT), the contours of a deal are in place after talks went late into Saturday night - but key issues still need settling.

And of course the final word lies with Trump.

"A political deal is on the table - but it needs the sign-off from Trump, who wants to negotiate this down to the very last moment," the diplomat told AFP.

The proposal, they said, involves a baseline levy of around 15 per cent on EU exports to the United States - the level secured by Japan - with carve-outs for critical sectors including aircraft and spirits, though not for wine.