Europe and US to seek to avoid return of steep tariffs in weekend of last-ditch trade talks
The European Commission, which leads trade policy for the 27-country bloc, briefed EU ambassadors on Friday about how talks were going. During the meeting, a senior EU official told member states there was no deal yet but that talks would continue "likely over the weekend," an EU diplomat told AFP agency. "A first basic agreement until deadline isn't off the table. Things are still very much in flux," the diplomat said.
Another European diplomat said it was not clear yet how US President Donald Trump would classify the status of negotiations with the EU when it addresses its trading partners early next week. Trump could keep the tariff suspension for partners where there is an agreement in principle, restore tariffs if there is no deal or reimpose levies where negotiations are going badly, the diplomat said.
'Imbalance' will remain
If no deal is struck, the default levy on EU imports is set to double to 20% or even higher, with Trump having threatened at one point to slap 50% duties. EU chief Ursula von der Leyen said on Thursday that Brussels sought an agreement in principle, which would mean further talks would be necessary on the details. But the commission believes that whatever happens, an imbalance in trade measures between the EU and the US will remain. "This begs the question, asked by a number of ambassadors today, how we prepare to remedy that imbalance," the diplomat said.
Some capitals appear to have reconciled with the prospect of the US keeping the current flat levy of 10% on EU exports, the challenge then being to negotiate carve-outs for key sectors, such as cars and aeronautics.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
15 minutes ago
- Euronews
Cost of living: Europe's cheapest and most expensive countries
Prices vary significantly between countries in Europe. Significant differences exist even between neighbouring countries such as Austria and Hungary — or Germany and Poland. But how can we best compare prices across Europe? And what are the most expensive and cheapest countries across the continent? Price level indices are a good way to help us understand how expensive or cheap goods and services are in each country. They compare national price levels to the EU average and are calculated using Purchasing Power Parities (PPPs). According to Eurostat, PPPs act like an artificial common currency, as they show how much people can buy with the same amount of money across countries. The results are based on price surveys covering more than 2,000 consumer goods and services, conducted across 36 European countries. How are prices compared across countries? There are several price level indices that compare the cost of different goods and services — such as food, drink, clothing, hotels, and more. In addition to these individual or group indices, there are two main indicators that show the 'overall' price level of consumer goods and services: One is actual individual consumption (AIC), which measures all goods and services actually consumed by households. It includes consumer goods and services purchased directly by households, as well as services provided by non-profit institutions. The indicator also includes services provided by the government for individual consumption such as health and education services. Another indicator is household final consumption expenditure (HFCE), which studies total spending on individual goods and services by resident households. In other words, AIC looks at what households use — including services they don't directly pay for — and HFCE shows what they spend money on. Eurostat notes that AIC is often used in international comparisons, as it captures more than the narrower concept of household consumption. Euronews has therefore used AIC figures for comparisons, although consumption data is also included in the chart. Switzerland is 3.9 times as expensive as Turkey As of 2024, out of 36 countries, Switzerland is the most expensive, with prices at 184% of the EU average — 84% higher than the average. Turkey is the cheapest, with prices at 47% of the EU average, meaning they are 53% lower than the EU average. This makes Switzerland 3.9 times as expensive as Turkey, revealing the sharp contrast in price levels across Europe. A price level above 100 means a country is more expensive than the EU average; below 100 means it's cheaper. Cheapest and most expensive countries: Bulgaria vs Luxembourg In the EU, Luxembourg is the most expensive country, with prices 51% higher than the EU average. Bulgaria and Romania are the cheapest members, at 57% of the EU average. This means Luxembourg is about 2.7 times as expensive as Bulgaria and Romania, showing a significant but smaller gap compared to the difference between Switzerland and Turkey. Ten EU countries have prices above the EU average. Denmark (143%) and Ireland (141%) follow Luxembourg as the most expensive. Among the EU's four largest economies, Germany (109%) and France (108%) are slightly above average, while Italy (98%) and Spain (91%) are below. Geographic patterns in price levels Western and Northern European countries tend to have high price levels. Switzerland, Iceland, Luxembourg, Denmark, Ireland, Norway, and Finland all show significantly above-average prices. These are generally high-income countries with strong currencies and higher living costs. All five Nordic countries— Denmark, Finland, Sweden, Norway, and Iceland — also consistently rank near the top. In contrast, Central and Eastern European countries generally have lower price levels. Romania, Bulgaria, Hungary, Poland, and the Baltic States — Latvia, Lithuania, and Estonia — are all below the EU average. These regions typically record lower labour costs. Price levels are also lower in the EU candidate countries. They included Turkey, North Macedonia, Albania, Serbia, and Bosnia and Herzegovina. Why are the EFTA countries so expensive? Two European Free Trade Association (EFTA) countries — Switzerland and Iceland —rank first and second in 2024, with Norway in sixth place. In a 2018 analysis based on 2017 figures, Lars Svennebye of the EFTA Statistical Office explained that high workforce productivity and corresponding high salaries were key factors behind the high price levels in EFTA countries. Earnings not included in price comparisons Individual or household incomes are not included in price level comparisons. 'These figures are pure price comparisons of goods and services. They do not take the level of wages, salaries or other measures of personal income into account,' Lars Svennebye told Euronews Business. This means that someone living in a country with a high price level may still be able to buy more goods and services than someone in a country with a lower price level, depending on income. Price level rankings change by categories Price levels vary significantly across different categories. For example, the price level for alcohol and tobacco in the EU was nearly three times higher in Ireland (205%), the most expensive country, than in Bulgaria (69%), the cheapest. Restaurants and hotels showed the second-largest gap. Denmark had the highest prices at 148% of the EU average, while Bulgaria again recorded the lowest, at 53%.
Fashion Network
2 hours ago
- Fashion Network
Lululemon opens first European airport store in London
Canadian activewear brand Lululemon has opened its first-ever store in a European airport, located in Heathrow Terminal 5, the UK's international gateway and the largest airport in Europe. The new 103-square-metre store offers passengers travelling through Heathrow access to Lululemon's range of leggings, yoga gear, travel-friendly layers and accessories. 'We are thrilled to welcome lululemon to Heathrow, their first airport store in Europe,' said Fraser Brown, retail director at Heathrow. 'As we strive to make every journey better, the launch of lululemon in Terminal 5 will give passengers the opportunity to enjoy their travel experience with added comfort and style. lululemon has amassed a cult following for good reason, and we are excited to welcome such an iconic activewear brand to Heathrow.' As part of the launch, Heathrow Rewards members will also receive double points when they spend £100 or more in the new store over the next two weeks. The store opened on Friday, strategically timed ahead of the peak summer travel season.
Euronews
6 hours ago
- Euronews
Iran's supreme leader makes first appearance since Iran-Israel war
Iranian Supreme Leader Ayatollah Ali Khamenei on Saturday made his first public appearance since the 12-day-war between Israel and Iran began. His absence during the war suggested heavy security for the Iranian leader who has final say on all state matters. The 86-year-old had reportedly spent the war in a bunker as threats on his life escalated. Attending a mourning ceremony on the eve of Ashoura, Iranian state television broadcasted images of him waving to a chanting crowd in the Iranian capital of Tehran. No immediate report was available on any public statement made. US President Donald Trump had sent warnings via social media to Khamenei after inserting themselves into the Iran-Israel war by bombing three nuclear sites. Trump had said that the US knew where Khamenei was, but had no plans to kill him 'at least for now.' Khamenei made a public statement on June 26, shortly before the ceasefire began. He said that Tehran had delivered a 'slap to America's face' by striking a US air base in Qatar and warned against further attacks by the US or Israel. Trump replied, in remarks to reporters and on social media: 'Look, you're a man of great faith. A man who's highly respected in his country. You have to tell the truth. You got beat to hell.' Iran said that more than 900 people were killed during its conflict with Israel, and thousands more were injured. It also confirmed serious damage to its nuclear facilities and subsequently denied the UN nuclear watchdog access to them. It remains unclear how badly damaged the sites were and whether Tehran has plans to continue negotiations with the US over its nuclear programme.
