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Mint
6 minutes ago
- Mint
EU reaches tariff deal with US to avert painful trade blow
The US and European Union agreed on a hard-fought deal that will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy. The pact was concluded less than a week before a Friday deadline for President Donald Trump's higher tariffs to take effect and was quickly praised by several European leaders, including German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni, who called it 'sustainable.' Trump and European Commission President Ursula von der Leyen announced the deal Sunday at his golf club in Turnberry, Scotland, although they didn't disclose the full details of the pact or release any written materials. The 15% rates will take effect Aug. 1, according to a US official. 'It's the biggest of all the deals,' Trump said, while von der Leyen added it would bring 'stability' and 'predictability.' US equity futures climbed, with S&P 500 contracts rising 0.4% after the index notched its fifth-straight all-time high on Friday. The deal would leave EU exports facing much higher tariffs than the bloc would charge for imports from the US, with von der Leyen saying the aim is to rebalance a trade surplus with the US. But those kinds of tradeoffs in the agreement angered some European industry groups, with Germany's main lobby saying it 'sends a fatal signal to the closely intertwined economies on both sides of the Atlantic.' Von der Leyen and Trump also differed on some of the key terms of the deal they announced. The US president said the tariff level would apply to 'automobiles and everything else,' but not pharmaceuticals and metals. The chief of the EU's executive arm said later at a news conference that the 15% rate would be all inclusive, wouldn't stack on top of industry-specific tariffs and would cover drugs, chips and cars. Metals duties 'will be cut and a quota system will be put in place,' she said. 'We have 15% for pharmaceuticals. Whatever the decision later on is, of the president of the US, how to deal with pharmaceuticals in general globally, that's on a different sheet of paper,' von der Leyen said, adding that the overall rate 'is not to be underestimated but it was the best we could get.' Senior US officials later said that the two sides agreed on a 15% tariff level for the EU's pharmaceutical exports. A separate Section 232 probe on pharmaceuticals is still coming over the next three weeks, but the EU tariff level will remain at 15%, the officials added. The EU agreed to purchase $750 billion in American energy products, invest $600 billion in the US on top of existing expenditures, open up countries' markets to trade with the US at zero tariffs and purchase 'vast amounts' of military equipment, Trump said. Von der Leyen said no decisions have been made on European wine and spirits, but the matter would be sorted out soon. Key to getting the 15% rate to apply to pharmaceuticals and semiconductors was the bloc's promise to make US investments, according to people familiar with the matter. Ahead of the meeting, the EU was expecting a 15% charge on its imports to also apply to most pharmaceuticals. The products had been one of the negotiation's main sticking points. Without a deal, Bloomberg Economics estimated that the total US average effective tariff rate would rise to nearly 18% on Aug. 1 from 13.5% under current policies. The new deal brings that number down to 16%. The deal doesn't cover the EU's steel and aluminum exports, which will remain subject to 50% tariffs, according to senior US officials. Aerospace tariffs, meanwhile, will remain at 0% pending the outcome of a Section 232 probe, the officials added. Officials had discussed terms for a quota system for steel and aluminum imports, which would face a lower import tax below a certain threshold and would be charged the regular 50% rate above it. The EU had also been seeking quotas and a cap on future industry-specific tariffs. For months, Trump has threatened most of the world with high tariffs with the goal of shrinking US trade deficits. But the prospect of those duties — and Trump's unpredictable nature — put world capitals on edge. In May, he threatened to impose a 50% duty on nearly all EU goods, adding pressure that accelerated negotiations, before lowering that to 30%. The transatlantic pact removes a major risk for markets and the global economy — a trade war involving $1.7 trillion worth of cross-border commerce — even though it means European shipments to the US are getting hit with a higher tax at the border. The goals, Trump said, were more production in the US and wider access for American exporters to the European market. Von der Leyen acknowledged part of the drive behind the talks was a reordering of trade, but cast it as beneficial for both sides. 'The starting point was an imbalance,' von der Leyen said. 'We wanted to rebalance the trade we made, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic, because the two biggest economies should have a good trade flow.' The announcement capped off months of often tense shuttle diplomacy between Brussels and Washington. The two sides appeared close to a deal earlier this month when Trump made his 30% threat. The EU had prepared to put levies on about €100 billion ($117 billion) — about a third of American exports to the bloc — if a deal wasn't reached and Trump followed through on his warning. US and European negotiators had been zeroing in on an agreement this past week, and the decision for von der Leyen to meet Trump at his signature golf property brought the standoff to a dramatic conclusion. The EU for weeks indicated a willingness to accept an unbalanced pact involving a reduced rate of around 15%, while seeking relief from levies on industries critical to the European economy. The US president has also imposed 25% duties on cars and double that rate on steel and aluminum, as well as copper. Several exporters in Asia, including Indonesia, the Philippines and Japan, have negotiated reciprocal rates between 15% to 20%, and the EU saw Japan's deal for 15% on autos as a breakthrough worth seeking as well. Washington's talks also continue with Switzerland, South Korea and Taiwan. Trump said he is 'looking at deals with three or four other countries' but 'for the most part' others with smaller economies or less significant trading relationships with the US would receive letters simply setting tariff rates. Earlier: Trump Says Countries Will Face Tariffs Ranging From 15% to 50% Trump announced a range of tariffs on almost all US trading partners in April, declaring his intent to revive domestic manufacturing, help pay for a massive tax cut and address economic imbalances he has said are detrimental to US workers. He put them on pause a week later when investors panicked. Trump's decades-old complaints about the global trading system heap particularly sharp scorn on the EU, which he has accused of being formed to 'screw' the US. The bloc was established in the years following World War II in order to establish economic stability on the continent. The president has lashed out at non-tariff barriers for American companies to do business across the 27-nation bloc. Those include the EU's value-added tax, levies on digital services, and safety and environmental regulations. Weeks of negotiations tested the EU's willingness to digest what is seen as an asymmetrical outcome, a senior EU diplomat said, but one that offers an opportunity to continue the talks without escalating further. --With assistance from Michael G. Wilson, Skylar Woodhouse, Katharina Rosskopf, Kasia Klimasinska, Sam Kim, Jorge Valero, Jenny Leonard, Tommaso Ebhardt, Arne Delfs, Se Young Lee and Richard Bravo.


Indian Express
2 hours ago
- Indian Express
At least 3 killed, several injured after passenger train derails in southern Germany
In a tragic incident, a regional passenger train derailed in southwestern Germany on Sunday, killing at least three people and seriously injuring several others, authorities said in a statement. The incident took place between the towns of Riedlingen and Munderkingen, which is about 158 kilometers west of Munich. At the time of derailment, there were at least 100 people on board when two carriages left the track. Stuttgart city police said the train crash took place near the corner of Germany that borders France and Switzerland. However, the federal and local authorities said the cause of the deadly derailment of the train remains under investigation. Photos from the scene showed parts of the train on its side after the derailment as rescuers climbed on top of the carriages. At the time of the crash, the train was on a 90 kilometer route between Sigmaringen and Ulm with about 100 people on board. Das Zugunglück im Kreis Biberach bestürzt mich. Mit dem Innenminister und dem Verkehrsminister stehe ich im engen Kontakt und habe sie gebeten, die Rettungskräfte mit allen Mitteln zu unterstützen. Wir trauern um die Opfer. Ihren Angehörigen spreche ich mein Mitgefühl aus. — Bundeskanzler Friedrich Merz (@bundeskanzler) July 27, 2025 At about 6:10pm (local time) on Sunday, at least two carriages of the train derailed in the wooded area. It wasn't immediately clear how many people were injured in the incident. Ahead of the crash, storms had passed through the area and investigators are trying to ascertain if rain was a factor for derailed carriages. According to Thomas Strobl, Interior Minister of the state of Baden Württenberg, 'There have been heavy rains here, so it cannot be ruled out that the heavy rain and a related landslide accident may have been the cause. However, this is currently the subject of ongoing investigations,' Associated Press reported. German Chancellor Friedrich Merz mourned the deaths of the victims and sent condolences to their families. In a post on X, Merz said 'The train accident in the Biberach district shocks me. I am in close contact with the Interior Minister and the Transport Minister and have asked them to support the rescue forces with all available means.'


NDTV
a day ago
- NDTV
Journalist Ready To Put Camera, Shield On Sale For Food, As Gaza Starves
As the war in Gaza continues with increasing intensity, the humanitarian crisis in the region has worsened dramatically. Severe shortages of food, clean water, and medical supplies are being reported across the Gaza Strip, affecting not only civilians but also journalists and aid workers. In a recent LinkedIn post, Gaza-based photojournalist Mohammed Abo Oun revealed that he is selling his camera equipment and press shield in order to buy food for his family. "I am the photojournalist Mohammed Abu Aoun from Gaza, I want to offer my equipment and the press shield for sale so that I can buy food for me and my family," he wrote. Abo Oun has contributed to major international media outlets including The New York Times, Sky News, and ABC News. The United Nations and humanitarian organisations have warned that Gaza is now facing the risk of famine, with a sharp rise in malnutrition-related deaths. According to the World Food Programme, nearly one-third of Gaza's population has gone without food for days. The UN agency has stated that approximately 470,000 people are expected to face "catastrophic hunger." Although Israel claims that hundreds of truckloads of aid are waiting at the border to be distributed, humanitarian agencies say that access and coordination remain major obstacles. On Thursday, the Israeli military brought journalists to the Gaza side of the Kerem Shalom crossing to show aid boxes stacked on pallets awaiting distribution. Meanwhile, the number of hot meals provided by charity kitchens in Gaza has dropped drastically from over 1 million meals daily in April to only 160,000 this month, according to UN figures. Multiple governments have issued fresh calls for a ceasefire. On Friday, German Chancellor Friedrich Merz posted on X, "The time has come to end the war in Gaza." He added, "We - France, the United Kingdom and Germany - urge all parties to bring an end to the conflict by reaching an immediate ceasefire". Earlier, Mexican President Claudia Sheinbaum condemned the ongoing war, saying, "Mexico is putting all its words and actions into building peace." On the other hand, former US President Donald Trump placed blame on Hamas for the breakdown in ceasefire negotiations, suggesting support for Israel's continued offensive. In remarks to reporters before leaving for a trip to Scotland, Trump said, "I think they want to die, and it's very, very bad", adding, "It got to a point where you're gonna have to finish the job." As the humanitarian situation continues to deteriorate, French President Emmanuel Macron announced Thursday that France will formally recognise the State of Palestine. He urged an immediate halt to hostilities to "save the civilian population." Meanwhile, Jordan has requested Israeli permission to conduct airdrops of food and baby formula into Gaza. Israeli officials have said the request is under coordination. The ongoing conflict, combined with the severe blockade of aid, has left millions vulnerable, and even the journalists covering the crisis, like Mohammed Abo Oun, are now forced to make impossible choices for survival.