US makes new offer to EU in tariff dispute
In the trade dispute with the EU, the US submitted a new offer. The European Commission confirmed on Thursday that it had received a relevant US document. It was being reviewed, Commission President Ursula von der Leyen said on Thursday night after an EU summit.
"We are ready for an agreement. At the same time, we are preparing for the possibility that no satisfactory agreement will be reached," Von der Leyen said, adding: "All options remain on the table." Neither the Commission president nor European Council President António Costa would comment on the content of the proposal. Merz wants quick and simple solution
German Chancellor Friedrich Merz urged for swift action after the consultations in Brussels: "A quick and simple solution now is better than a slow and highly complicated one," he said, referring to the negotiations with the US. The tariffs imposed by US President Donald Trump were endangering German companies.
At the same time, Merz stressed that he was not criticising the current negotiation strategy of the responsible European Commission. "I only suggested and urged that this should not be made too complicated now," he explained. Trump threatens further tariffs if agreement fails
Merz's comments came against the backdrop of US President Donald Trump's intention to impose even more tariffs from July 9 if the EU does not accommodate the US on trade issues. The Republican justified his approach primarily by saying that he wanted to correct alleged trade imbalances.
At the same time, tariff revenues were intended to at least partially offset his expensive campaign promise of large tax cuts. The European Commission, on the other hand, considered the tariffs unjustified and incompatible with the rules of the World Trade Organisation (WTO). Von der Leyen: EU prepared for countermeasures
In the event that no acceptable agreement with the US could be reached, the authority intended to quickly impose retaliatory tariffs. Von der Leyen stressed that they were prepared to defend European interests if necessary and had discussed a list of "countervailing measures". Merz expressed support for this approach. "If there is no agreement on tariffs, then the European Union is ready and able to take appropriate measures of its own," he said. Agreement in negotiations between China and the US
In the conflict between China and the US, however, a step towards de-escalation seemed to have been achieved. According to both countries, negotiators were able to agree on an end to certain trade restrictions. As the Ministry of Commerce in Beijing announced, China would examine and approve applications for the export of 'controlled goods' that complied with the regulations. In return, the US would lift a number of 'restrictive measures' against China, it said.
US President Donald Trump had previously mentioned a signed agreement with China - but left many questions unanswered. US Secretary of Commerce Howard Lutnick subsequently confirmed in an interview with the financial news agency Bloomberg that the deal with China had been signed.
Because of China's export restrictions on rare earths, industry outside the People's Republic recently came under considerable pressure. Will the WTO be replaced in the long term?
Triggered by the looming trade wars, there was a new idea in the European Union: a replacement for the now largely incapacitated WTO. At the EU summit, Von der Leyen brought up a 'redesign' of the organisation.
Merz even spoke of a 'new kind of trade organisation' that could gradually replace 'what we no longer have with the WTO today'. The CDU chairman meant mechanisms for resolving trade disputes. The European Commission could establish such mechanisms for new EU trade agreements, Merz said.
The WTO was founded in 1995 to dismantle global trade barriers. For years, it has suffered from increasing protectionism, outdated rules and the blockade of its appellate body. Reforms have so far failed due to the disagreement of the members. This article was translated to English using an AI tool.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Leader Live
44 minutes ago
- Leader Live
Trump says he is terminating trade talks with Canada over tax on tech firms
Mr Trump, in a post on his social media network, said Canada had just informed the US that it was sticking to its plan to impose the digital services tax, which applies to Canadian and foreign businesses that engage with online users in Canada. The tax is set to go into effect on Monday. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,' Mr Trump said in his Truth Social post. Mr Trump's announcement was the latest move in the trade war he has launched since taking office for a second term in January. Progress with Canada has been a roller coaster, starting with the US president repeatedly suggesting it would be absorbed as a US state. Canadian Prime Minister Mark Carney said on Friday that his country would 'continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation'. Mr Trump later said he expects that Canada will remove the tax. 'Economically we have such power over Canada. We'd rather not use it,' Mr Trump said in the Oval Office. 'It's not going to work out well for Canada. They were foolish to do it.' When asked if Canada could do anything to restart talks, he suggested Canada could remove the tax, predicted it will but said: 'It doesn't matter to me.' Mr Carney visited Mr Trump in May at the White House. Mr Trump last week travelled to Canada for the G7 summit in Alberta, where Mr Carney said Canada and the US had set a 30-day deadline for trade talks. The digital services tax will hit companies including Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving US companies with a two billion US dollar (£1.4 billion) bill due at the end of the month. 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports,' Matt Schruers, chief executive of the Computer & Communications Industry Association, said in a statement. Canada and the US have been discussing easing a series of steep tariffs Mr Trump imposed on goods from America's neighbour. The Republican president earlier told reporters that the US was soon preparing to send letters to different countries, informing them of the new tariff rate his administration would impose on them. Mr Trump has imposed 50% tariffs on steel and aluminium as well as 25% tariffs on cars. He is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period he set would expire. Canada and Mexico face separate tariffs of as much as 25% that Mr Trump put into place under the auspices of stopping fentanyl smuggling, though some products are still protected under the 2020 US-Mexico-Canada Agreement signed during Mr Trump's first term. Addressing reporters after a private meeting with Republican senators on Friday, Treasury Secretary Scott Bessent declined to comment on news that Mr Trump had ended trade talks with Canada. 'I was in the meeting,' Mr Bessent said before moving on to the next question. About 60% of US crude oil imports are from Canada, and 85% of US electricity imports as well. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager to obtain. About 80% of Canada's exports go to the US. Daniel Beland, a political science professor at McGill University in Montreal, said it is a domestic tax issue, but it has been a source of tensions between Canada and the US for a while because it targets US tech giants. 'The Digital Services Tax Act was signed into law a year ago so the advent of this new tax has been known for a long time,' Mr Beland said. 'Yet, President Trump waited just before its implementation to create drama over it in the context of ongoing and highly uncertain trade negotiations between the two countries.'
The Guardian
an hour ago
- The Guardian
EU must have a stronger response over Gaza, says bloc's former chief diplomat
The EU must come up with a more assertive response to the humanitarian catastrophe in Gaza and the violations of international law, the bloc's former chief diplomat has said. In a strongly worded article, Josep Borrell said the EU had a 'duty' to intervene and must come up with its own concerted plan to end the war instead of relying on the US. 'Europe can no longer afford to linger at the margins,' he said in the article that was co-authored with Kalypso Nicolaidis, an occasional adviser to the EU and professorial chair in international affairs at the Florence school of transnational governance at the European University Institute. 'The EU needs a concerted plan. 'Not only is Europe's own security at stake, but more important, European history imposes a duty on Europeans to intervene in response to Israel's violations of international law,' they say, adding: 'Europeans cannot stay the hapless fools in this tragic story, dishing out cash with their eyes closed.' Their intervention in Foreign Affairs magazine comes as EU member states continue to struggle to unite on action. Last week Borrell's successor, Kaja Kallas, said it was 'very clear' that Israel had breached its human rights commitments in Gaza but said the 'concrete question' was what action the member states can agree on. Her remarks were made after a review of the EU-Israel association agreement, a trade and cooperation pact, was triggered last month by 17 member states in protest at Israel's blockade of humanitarian aid to Gaza. The authors say there are ways and lessons from the past to guide EU member states who want to take action without having to get buy in from countries reluctant to do so, for historical reasons, including Germany, Hungary and Austria. They suggest a number of actions, from using the EU's financial leverage, to suspending Israel's presence in EU programmes such as the Erasmus+ student exchange. They also suggest EU member states could explore using article 20 of the EU's treaty to 'allow for at least nine member states to come together to utilise certain foreign policy tools not related to defence'. 'Because such an action has never been taken before, those states would have to explore what [it] … would concretely allow them to do,' the article said. Borrell and Nicolaidis argue that the disunity in the EU has reduced what should be a powerful mediating voice in the Middle East into a bit player. 'Some EU leaders cautiously backed the international criminal court's investigations, while others, such as Austria and Germany, have declined to implement its arrest warrants against Israeli officials,' they say. 'And because EU member states, beginning with Germany and Hungary, could not agree on whether to revisit the union's trade policy with Israel, the EU continues to be Israel's largest trading partner. 'As a result, the EU, as a bloc, has been largely relegated to the sidelines, divided internally and overshadowed in ceasefire diplomacy by the United States and regional actors such as Egypt and Qatar. Shouldn't the EU also have acted as a mediator?'
Scottish Sun
an hour ago
- Scottish Sun
UK may ban airlines from charging for hand luggage – but it could hike your flight price, experts warn
The EU are due to discuss the new law next month PACK IT IN UK may ban airlines from charging for hand luggage – but it could hike your flight price, experts warn AIRLINES could be banned from charging British passengers bringing hand luggage on flights, it is claimed. Transport Secretary Heidi Alexander is understood to be considering proposals to change the rules after the EU Parliament transport and tourism committee put forward a new law to allow two carry-on items free as standard. Advertisement 5 Heidi Alexander, Transport Secretary, is reported to be considering the proposals Credit: Alamy 5 New rules could mean everyone gets a free carry-on bag Credit: Getty 5 But the new rules could drive up air fares for passengers Credit: Alamy If the new law is approved, passengers flying on any EU airline will be allowed a free cabin bag to put in the overhead locker - as long as it weighs no more than 7kg and measures up to 100cm. Ryanair and Wizz Air introduced fees for large cabin bags in 2018, and easyJet followed suit in 2021. However, the likes of British Airways and already include two pieces of cabin baggage as standard in their base fairs. But there are fears some airlines will put up ticket prices to claw back revenue losses - with some claiming the proposals are unworkable due to lack of space and warn flights maybe delayed. Advertisement A transport source spoke to the i newspaper after the EU committee voted to introduce the standardised allowance. Due to varying rules across airlines, the European Parliament hopes to create a common standard across the board for carry-on luggage. The proposals are still under discussion by member states and a time frame for implementation are unclear, though a meeting is scheduled for July. The UK source told the i the Government was also looking at changing the law in the coming months, although policy development is at an early stage. Advertisement A Department for Transport spokeswoman said: 'We do not comment on speculation but continue to closely monitor the EU's proposals on air passenger rights reforms. 'We want to make sure passengers can travel with ease, which is why we landed a deal with the EU to allow millions more British nationals to use e-gates at airports in time for the summer holidays.' Primark launches new range of cabin bags on wheels - they're approved by all budget airlines & there's matching carry-ons too Airlines have warned they may need to increase ticket prices which would impact all passengers, including those travelling with smaller bags. Airlines for Europe Managing Director Ourania Georgoutsakou told Politico: 'The European Parliament should let travellers decide what services they want, what services they pay for and, importantly, what services they don't.' Advertisement Airlines for Europe also warned that its members won't be able to comply with the new rule due to lack of space. A typical cabin seats 180 passengers but has room for only 90 trolley bags in the overhead lockers. Airlines for Europe also warned that its members won't be able to comply with the new rule due to lack of space. A typical cabin seats 180 passengers but has room for only 90 trolley bags in the overhead lockers. Advertisement Last year, there were reports that there were going to be changes to the hand luggage rules - but these did not change. Speaking to The Independent at the time, Michael O'Leary, chief executive of Europe's biggest budget carrier, Ryanair said: "We do think there should be a standardised agreement on what can be brought on board. "We're working with the other airlines in A4E to try to agree standardised sizes, but we haven't reached an agreement with them yet." While the rules continue to be discussed, check out this popular travel bag that's allowed on Ryanair flights for free. Advertisement Plus the travel bags, plane outfits and accessories we can't live without – and they start from just 99p. Expert opinion on what the new rules mean for you Head of Travel Lisa Minot weighs in. EUROPEAN plans to force all airlines to allow passengers to bring a bag weighing less than 7kg into the cabin as well as an under-seat bag seem on the face of it to be a good outcome for travellers. But there could be a sting in the tail for flyers going forward. Low cost airlines have for years been keeping the price of base fares low by adding on an ever more dizzying array of extra charges. And these ancillary charges now make up an increasing percentage of their profits. These extra charges now make up more than 30per cent of Ryanair's revenue. Between October and December last year, Ryanair's ancillary revenues were worth £884million. Airlines argue that if they are forced to comply with the new laws, the base fares will have to rise for every passenger across the board, including those flying smaller bags. They also point out many airlines won't be able to comply with the new rules as typically planes that carry 180 passengers only have room for 90 trolley bags. But on the plus side, forcing all airlines to adhere to the same rules can only be a good thing. Right now, the disparity between the size and weight of bags and the prices airlines charge is hideously complicated and can often lead to passengers being caught out. 5 Potential new rules could mean all passengers can bring a free carry-on bag onboard Credit: Alamy
