Trump Says US-China Have ‘Confines of a Deal,’ Sees 50-50 Odds For EU Trade Agreement

President Donald Trump said Friday that talks with China were progressing, while the odds of securing a trade agreement with the European Union remain evenly split.

The U.S. and China have the “confines of a deal,” Trump told reporters while leaving the White House for Scotland, according to a report by Bloomberg.

“I would say that we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU,” he added, explaining U.S. and EU negotiators were working “closely” to strike a deal.

The markets were in the green during Friday morning trade. The SPDR S&P 500 ETF (SPY) gained 0.18%, while the SPDR Dow Jones Industrial Average (DIA) was up 0.13% and the Invesco QQQ Trust Series 1 (QQQ) climbed 0.16%.

On Stocktwits, retail sentiment around SPY remained in ‘neutral’ territory over the past day, while retail sentiment around DIA improved to ‘bullish’ from the ‘neutral’ zone.

Trump’s comments follow his issuance of a tariff letter to the EU earlier this month, stating that the trading bloc would face a 30% tariff on most goods if it does not reach a trade agreement with the U.S. by August 1. 

European negotiators are reportedly optimistic that they can strike a deal setting a 15% tariff baseline for most exports. It is also the lowest tariff rate that Trump has implemented in his trade deals with trading partners so far. 

U.S and Chinese negotiators are also scheduled to meet in Stockholm next week to discuss a potential extension for the August 1 deadline. 

Earlier this week, Bessent said President Trump is focused on reviving domestic precision manufacturing and correcting what he called a “highly imbalanced” relationship with China.

“We’ll be talking about a purchasing agreement, especially around agriculture,” Bessent said. He added that discussions may also cover China’s purchases of sanctioned Russian and Iranian oil, as well as other security issues.

Trump has already reached a trade deal with some of the U.S.’s other Asian trading partners, including Indonesia, Vietnam, and the Philippines.

Read also: Trump Says Meeting With Fed Chair Powell On Rates Was ‘Very Good’

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