China Threatens Response to EU Sanctions on Banks, Firms
The European Union sanctioned two Chinese banks and five companies based in China on Friday as part of the latest round of sanctions against Russia over its invasion of Ukraine.
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Yahoo
9 minutes ago
- Yahoo
Analysis-Out-gunned Europe accepts least-worst US trade deal
By Mark John LONDON (Reuters) -In the end, Europe found it lacked the leverage to pull Donald Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15% tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. The cold shower is all the more bracing given that the EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few days. While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9% economic growth this year compared to just over 1% in a trade tension-free environment. But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%. Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff pact. It took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week. "The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB. "We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses." NOW WHAT? That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final deal. Not only is it expected that the EU will now call off any retaliation and remain open to U.S. goods on existing terms, but it has also pledged $600 billion of investment in the United States. The time-frame for that remains undefined, as do other details of the accord for now. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud services. It remains to be seen whether this will encourage European leaders to accelerate the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. "Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world." (Additional reporting by Jan Strupczewski in Brussels; Christian Kraemer and Maria Martinez in Berlin; Writing by Mark John; Editing by Nick Zieminski) Sign in to access your portfolio
UPI
12 minutes ago
- UPI
Trump announces U.S. deal with European Union to impose 15% tariff
U.S. President Donald Trump waves to the media while playing golf at Turnberry Golf Club in Scotland on Sunday. He later met with European Commission President Ursula von der Leyen. Photo by Hugo Philpott/UPI | License Photo July 27 (UPI) -- President Donald Trump on Sunday announced 15% tariffs on most foreign goods from the European Union, down from the threatened 30%, as part of a trade agreement with the 27-nation bloc. Trump announced the deal at his Turnberry Isle Country Club in Scotland after his public session with European Commission President von der Leyen. Trump said the European Union won't impose new tariffs on U.S. imports. During the meeting with the media, both leaders said the chance of a deal was 50-50. "You are known as a tough negotiator and dealmaker," von der Leyen told Trump, with reporters on hand. Leyen said the agreement "will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic." Trump said the deal was "satisfactory to both sides." The European Union is the largest U.S. trading partner with $605 billion in goods yearly. The products are mainly drugs and pharmaceuticals, primarily from Ireland, as well as aircraft and heavy machinery, mainly from France and Germany. The 50% tariffs on steel, like most other nations, would remain and more duties could happen for pharmaceutical products, as well as semiconductors. Trump has also threatened a 200% tariffs on any drugs imported to the U.S. Trump said the deal would be "great for cars" and agriculture. Trump has previously noted that few American cars are sold in Europe. On April 2, he said he would impose a 20% duty against the EU, with most trading nations imposed a baseline 10%. He paused the retaliatory tariffs on April 9 for 90 days. In a letter to EU nations on July 12, the U.S. president threatened 30% retaliatory tariffs to take effect on Aug. 1. "Imposing 30% tariffs on E.U. exports would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic," von der Leyen said after Trump's letter. Letters to other nations have threatened tariffs as high as 50%, including to Brazil. The Trump administration has been negotiating with other nations, including reaching deals with China (30%), Japan (15%), Indonesia (19%) and Vietnam (20%). Britain, which is not part of the European Union, has a reduction in some tariffs of 10% on up to 100,000 vehicles and 25% on steel and aluminum. Last year, the average U.S. tariffs on imports from the EU was 1.2%, according to Capital Economics' chief Europe economist. The deal with the European Union is part of a broader trade agreement. EU had a $58.7 billion overall trade surplus with the U.S. in 2024. For goods, it was $168.6 billion but the deficit was $126 billion in services trade. "The European Union is going to agree to purchase from the United States $750 billion worth of energy," Trump said. The E.U. would also invest $600 billion into the United States. In 2024, the bloc bought nearly $400 billion in goods. Michael Brown, a senior research strategist at British-based Pepperstone brokerage, told The New York Times that U.S. defense companies likely will emerge as winners from the deal.
Bloomberg
12 minutes ago
- Bloomberg
America Is Slipping Behind India's Clean Power Boom
Once upon a time, the US was the sole clean energy superpower. Until 2011, it led the world in connecting wind and solar generators to the grid. Then China took over, to a point where its lead now looks unassailable: The People's Republic added eight times more renewables than the US last year. This year, India is likely to overtake too. The country connected 22 gigawatts of wind and solar in the first half — a dramatic recovery from a troubling slowdown in 2022 and 2023, and enough at full output to power nearly one-tenth of the grid 1. Assuming this is maintained through December, that should put India ahead of the 40 GW that the US government expects this year.
