Trump to Meet With EU Sunday, Tariff Rebates Are Possible for Some Americans

Trump told reporters that he believes there’s a “pretty good chance of making a deal” with the EU. (Photo by Chip Somodevilla/Getty Images)

President Donald Trump told reporters at the Glasgow airport in Scotland on Friday that he will meet with the European Union on Sunday as the U.S. looks to strike a trade deal with them. He reiterated comments from earlier in the day that the U.S. has a fifty-fifty chance of striking a deal with the EU that will result in lower tariff rates on imports.

“It will be a deal where they’ll have to buy down their tariffs,” he said earlier in the day as he departed the White House on his way to Scotland, where he will also meet with United Kingdom Prime Minister Keir Starmer and visit his new golf course.

“I think the EU has a pretty good chance of making a deal,” he added.

The 27-country bloc faces a tariff rate of 30% on imports to the U.S. if no deal is struck by next Friday. The EU is also planning to raise levies on imports from the U.S. if a pact isn’t made.

Trump said Thursday that Japan bought down the 25% tariff rate set to go into effect Aug. 1 to 15% in part by committing to investing $550 billion in U.S. industries, with most of the profits going to the U.S. He suggested that others, including the EU, could strike similar deals.

Rebates

Trump added that he is thinking about giving rebates to people “of a certain income” from tariff revenue, which Treasury Secretary Scott Bessent has said could reach $300 billion by the end of the year. “We have so much money coming in, we’re thinking about a little rebate.”

China, Canada

As for deals with other nations, Trump said, “We have the confines of a deal with China. We don’t have a deal with Canada.” Nearly 200 other countries will be getting letters stating their new tariff rates next week.

Digital Services Taxes

When asked if there was any wiggle room on digital services taxes in exchange for steel and aluminum tariffs, Trump said, “Not a lot because if I do it for one, I have to do it for everyone.”

Steel and aluminum imports to the U.S. are currently tariffed at 50% but the U.K. has a special carve-out where it only pays 25% for now.

Impact on Corporate Earnings

Boston Beer said the impact of tariffs would likely be smaller than previously thought. Photo: Dreamstime

The impact of tariffs is showing up in companies’ second-quarter earnings reports, though it isn’t as bad as feared.

The taxes on imports are still set to raise companies’ costs and weigh on profits. Evidence so far suggests that American corporations are paying for tariffs, rather than foreign firms or U.S. consumers. That may change in the future if companies raise prices to pass on costs.

Investors have been pleasantly surprised at the relatively small effects of the tariffs so far.

Deckers Outdoor, the maker of Ugg and Hoka shoes, declined to give guidance for more than the current quarter because of trade uncertainty. But the guidance it did give wasn’t bad. It sees earnings per share rising to $1.50 to $1.55 from $0.93 last quarter. The stock rose 11% Friday.

Boston Beer, the maker of Sam Adams, said that tariffs would cost the company between $15 million and $20 million for the full year. That is less than the $30 million it had projected before. Shares closed up 6% Friday.

Chip maker Intel said its results were helped by lower tariffs than feared.

Write to Anita Hamilton at anita.hamilton@barrons.com and Brian Swint at brian.swint@barrons.com