Under the framework deal struck by European Commission president Ursula von der Leyen and Trump at his Turnberry golf resort on Sunday, the EU has swallowed a broad-based “baseline” US tariff of 15 per cent, including crucially for cars, but not for steel, which will be subject to a quota system.

President Donald Trump headed into high-stakes talks Sunday with a top European official demanding fairer trade with the 27-member European Union and threatening steep tariffs to achieve that, while insisting the United States will not go below 15% import taxes.

The United States and European Union have reached a critical trade pact, reducing US-imposed tariffs on EU imports from a threatened 30% to 15%. Announced jointly by President Donald Trump and European Commission President Ursula von der Leyen,

The European Union is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.