Tariffs: EU hands Trump a political win to avoid trade chaos
The suspense lasted until the very last minute. At the start of the meeting, the Republican, claiming to be "not in a good mood," still estimated the odds of reaching a deal at 50%. The agreement was clinched just five days before the August 1 deadline he had previously set, after which European exports would have faced punitive tariffs of 30%.
Faced with two evils, the 27 EU member states chose what they saw as the lesser: an unbalanced compromise favoring the US rather than risking a full-scale trade war with unpredictable consequences. The choice was of "stability over total unpredictability," European Commissioner for Trade Maros Sefcovic explained on a flight from Brussels to Glasgow. While German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni welcomed the agreement without much enthusiasm, it was Belgian Prime Minister Bart De Wever who best summed up the mood among European leaders: "This is a moment of relief, but not of celebration." French Minister for European Affairs Benjamin Haddad, meanwhile, recognized the deal would bring "temporary stability" but called it "unbalanced."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
24 minutes ago
- Fashion Network
L'Oréal sales slip in Q2 as North Asia and travel retail lag
L'Oréal, the French beauty giant known for brands such as Lancôme, Maybelline and CeraVe, reported weaker-than-expected sales in the second quarter, as a slowdown in North Asia, travel retail, and its core European market weighed on results. Quarterly revenue fell by 1.3% year-over-year to €10.73 billion ($11.7 billion), the company said Tuesday evening. The drop was steeper than analysts had expected, and revenue in North Asia—particularly China and South Korea—saw a significant decline that gains in other global markets could not fully offset. On a like-for-like basis, which excludes currency fluctuations and acquisitions or divestments, group sales rose 2.4%, falling short of the 2.9% growth projected in a Visible Alpha consensus estimate cited by Jefferies. Total revenue for the April–June period reached €10.74 billion ($12.38 billion). Adjusted for the phased rollout of a new IT system, underlying growth stood at 3.7%, according to the company. L'Oréal is facing sluggish consumer spending in China due to stagnant wage growth, high youth unemployment, and continued uncertainty surrounding former U.S. President Donald Trump 's tariff policies. Demand in Asian travel retail channels also remained weak. Global cosmetics market growth has slowed significantly in recent quarters from the highs of the post-pandemic rebound, when inflation drove up sales values. The sector—especially the fragrance category, which is predominantly produced in Europe—is also grappling with rising costs tied to tariffs. In response to the European Union's recent agreement to impose a 15% tariff on U.S. imports of EU cosmetics, L'Oréal CEO Nicolas Hieronimus voiced concern and revealed plans to lobby for an exemption. 'I don't think it's a good deal,' he told Reuters. 'We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because ultimately, this could prove costly.' L'Oréal, which imports around 30% of its U.S. sales, may raise prices and shift more production to its four American factories. However, Hieronimus said the group is holding off on any decisions until further negotiations between the U.S. and other nations are finalized. While analysts at Jefferies expect U.S. perfume sales to slow in the second half as companies raise prices, Hieronimus noted that L'Oréal's fragrance segment is currently growing at double-digit rates, compared to 7% for the broader market. 'There is some pricing power on fragrances, but we also have to consider how sensitive demand is to price changes,' he added. Following the earnings release, L'Oréal shares fell by around 1% in after-hours trading on the Tradegate platform.
Fashion Network
an hour ago
- Fashion Network
L'Oréal sales slip in Q2 as North Asia and travel retail lag
L'Oréal, the French beauty giant known for brands such as Lancôme, Maybelline and CeraVe, reported weaker-than-expected sales in the second quarter, as a slowdown in North Asia, travel retail, and its core European market weighed on results. Quarterly revenue fell by 1.3% year-over-year to €10.73 billion ($11.7 billion), the company said Tuesday evening. The drop was steeper than analysts had expected, and revenue in North Asia—particularly China and South Korea—saw a significant decline that gains in other global markets could not fully offset. On a like-for-like basis, which excludes currency fluctuations and acquisitions or divestments, group sales rose 2.4%, falling short of the 2.9% growth projected in a Visible Alpha consensus estimate cited by Jefferies. Total revenue for the April–June period reached €10.74 billion ($12.38 billion). Adjusted for the phased rollout of a new IT system, underlying growth stood at 3.7%, according to the company. L'Oréal is facing sluggish consumer spending in China due to stagnant wage growth, high youth unemployment, and continued uncertainty surrounding former U.S. President Donald Trump 's tariff policies. Demand in Asian travel retail channels also remained weak. Global cosmetics market growth has slowed significantly in recent quarters from the highs of the post-pandemic rebound, when inflation drove up sales values. The sector—especially the fragrance category, which is predominantly produced in Europe—is also grappling with rising costs tied to tariffs. In response to the European Union's recent agreement to impose a 15% tariff on U.S. imports of EU cosmetics, L'Oréal CEO Nicolas Hieronimus voiced concern and revealed plans to lobby for an exemption. 'I don't think it's a good deal,' he told Reuters. 'We're going to be writing to all the European leaders and negotiators to see whether there's a loophole we could benefit from, because ultimately, this could prove costly.' L'Oréal, which imports around 30% of its U.S. sales, may raise prices and shift more production to its four American factories. However, Hieronimus said the group is holding off on any decisions until further negotiations between the U.S. and other nations are finalized. While analysts at Jefferies expect U.S. perfume sales to slow in the second half as companies raise prices, Hieronimus noted that L'Oréal's fragrance segment is currently growing at double-digit rates, compared to 7% for the broader market. 'There is some pricing power on fragrances, but we also have to consider how sensitive demand is to price changes,' he added. Following the earnings release, L'Oréal shares fell by around 1% in after-hours trading on the Tradegate platform.
France 24
an hour ago
- France 24
Trump opens Scottish golf course and vows 'peaceful world'
US President Donald Trump cuts the ribbon on the first tee to officially open the Trump International Golf Links course in Balmedie, Aberdeenshire To the sound of bagpipes, secret agents and golfers criss-crossed the sprawling complex on the Aberdeenshire coast, waiting for the president to tee off. "We started with a beautiful piece of land, but we made it much more beautiful, and the area has ... really, really welcomed us," Trump said before cutting a red ribbon. "We'll play it very quickly, and then I go back to (Washington) DC and we put out fires all over the world," he added. "We have a world that's got some conflict, but we've ironed out a lot of it. We're gonna have a great and peaceful world." Marine One carrying US President Donald Trump and UK Prime Minister Keir Starmer arrives at MacLeod House on the Trump International Estate in Balmedie, Aberdeenshire © Jane Barlow / POOL/AFP Trump's campaign song, the Village People's "YMCA", blared out after the ribbon cutting, as fireworks exploded in the background. The president then teed off with son Eric, who led the project. "This will be a tremendously successful place and a place where people can come and enjoy life," the US leader said, highlighting how his trip has again blurred the lines between his presidency and his business interests. "We wanted this to be the greatest 36 holes anywhere on Earth. And there's no question that that's been achieved," said Eric Trump. "This was his Mona Lisa," he said of his father's crafting of the course. "Sculpting the dunes, sculpting the land, that was always his painting," he added. Trade deal Trump also held talks with Scotland's leader First Minister John Swinney discussing tariffs on Scottish whisky as well as the situation in Gaza. Trump boards Air Force One at RAF Lossiemouth, north-east Scotland, heading back to the United States © Brendan SMIALOWSKI / AFP Then later Tuesday, Trump departed Scotland heading back to the United States. His new course in Scotland features the world's largest natural bunker, dunes and greens overlooking the sea, with a "focus on environmental sensitivity", said a press release. Visible out to sea were the offshore wind turbines that Trump unsuccessfully tried to block. The president again spoke out against wind power as he hosted European Commission president Ursula von der Leyen on Sunday and UK Prime Minister Keir Starmer on Monday. It was one of the many issues Trump addressed during free-wheeling press conferences at his other golf complex in Turnberry, western Scotland where he played golf on Saturday and Sunday and juggled diplomacy. A wind turbine is seen in the sea behind the Trump International Golf Links course in Balmedie, Aberdeenshire © Jane Barlow / POOL/AFP With Von der Leyen, he announced a trade agreement in which the EU resigned itself to 15 percent tariffs on goods entering the United States, a deal heavily criticised across the continent. At a press conference Monday with Starmer, Trump promised more aid for Gaza and gave Russian President Vladimir Putin a "10 or 12 day" ultimatum to cease hostilities in Ukraine. "I really felt it was going to end. But every time I think it's going to end he kills people," Trump said of the Russian leader. "I'm not so interested in talking (to him) anymore," he added. Trump also criticised London mayor Sadiq Khan at the press conference and waded back into UK politics on Tuesday when he took to his Truth Social platform to urge the government to cut taxes and incentivise oil drilling in the North Sea, denouncing wind turbines as "ugly monsters". "Incentivize the drillers, FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people," he wrote. © 2025 AFP
