US President Donald Trump said there is a 50% chance Washington will reach an agreement with the European Union to reduce import tariffs.

In an attempt to reduce his country's trade deficit, Trump promised to impose punitive tariffs on dozens of countries if they do not reach an agreement with Washington by August 1.

"I would say we have a 50% chance, maybe less than that, but a 50% chance of reaching an agreement with the EU," Trump said as he left the White House for a trip to Scotland.

His administration promised "90 deals in 90 days" when it postponed higher tariffs in April, but has so far announced only five agreements, including with Britain, Japan, and the Philippines, AFP reported.

The 27 EU member states have allowed the European Commission to focus on seeking an agreement to avoid high US tariffs. Trump is threatening 30% tariffs if no agreement is reached by the end of the month.

Brussels and Washington appear to be moving closer to an agreement with a base rate of 15% for US tariffs on EU goods and potential exemptions for critical sectors, several diplomats said.

On July 24, however, EU countries backed a package of retaliatory measures against US goods worth $109 billion (€93 billion), which will take effect on August 7 if negotiations fail.

Trump claims that most of the agreements he wanted to conclude have been finalized, although he clarified that this refers to sending letters imposing tariffs on US trading partners, not to negotiations on free trade agreements.

Tariffs imposed on other countries are ultimately passed on as a sales tax to US consumers because they are paid by importers, not by the country supplying the goods or services.

"I don't want to hurt other countries, but we will send a letter this week that will essentially say, 'You will pay 10%, you will pay 15%, you may pay less,' I don't know," he said.

The US president explained that his negotiators were working "hard" with EU representatives. However, he added that "we haven't had much luck" in negotiations with Canada, which Trump has threatened with a 35% tariff.

The US and China, Washington's third-largest trading partner in goods this year, are "on the verge of a deal," he said. | BGNES