EU to keep US trade countermeasures on hold until August, says von der Leyen
US President Donald Trump escalated his global trade war on Saturday and threatened to impose a 30 per cent tariff on imports from the European Union from Aug 1, separate from sector-specific duties, despite months of intense talks.
Announcing the extension of the halt on retaliatory measures, von der Leyen told reporters the bloc would 'continue to prepare further countermeasures so we are fully prepared'.
A first package of countermeasures to US tariffs on steel and aluminium that would hit 21 billion euros (S$31.4 billion) in US goods was suspended in April for 90 days to allow time for negotiations.
The suspension had been due to expire on Monday.
A second package has been in the works since May and would target 72 billion euros of US goods, but these measures have not yet been made public and the final list requires approval by member states.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Von der Leyen added that use of the EU's Anti-Coercion Instrument was not yet on the table.
'The (anti-coercion) instrument is created for extraordinary situations, we are not there yet,' she said.
The instrument allows the bloc to retaliate against third countries that put economic pressure on EU members to change their policies.
Possible retaliatory steps could include restricting EU market access to goods and services, and other economic measures related to areas including foreign direct investment, financial markets and export controls. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
China's reputation improves in Pew survey as US sees drop
[BEIJING] Public perceptions of China have improved over the past year, according to a new survey, while those of the US have dimmed, a trend that coincides with US President Donald Trump returning to office. A median of 32 per cent of respondents in high-income countries had a favourable opinion of China, according to a report by Pew Research Center released on Wednesday (Jul 16), the highest level in six years. In contrast, the figure for the US fell to 35 per cent, the lowest in data going back to 2017. Also, more respondents expressed confidence in President Xi Jinping than in a US leader, the first time that has happened since Trump's first term. Still, the figures were low, at 24 to 22 per cent. The broadest part of the research was done from January to late April, a period that includes Trump announcing tariffs on nations around the world on his so-called Liberation Day, though the levies were later paused while trade deals were negotiated. Pew said some 28,000 people around the world were surveyed but did not indicate how many participated in the rich nations. While Trump has sought to rebalance in a fundamental way America's vast trade networks, Xi has tried to improve relations with South-east Asia, Africa and Europe. The Pew survey seems to indicate Xi has had some success on that front, though China's relationship with the European Union remains difficult over Beijing's support for Russia since it invaded Ukraine. On Monday, Democrats on the Senate Foreign Relations Committee accused the Trump administration of 'ceding global leadership to China'. They said in a report that the trade war and a retreat from international engagement through cuts to foreign aid and media agencies have undercut alliances and economic partnerships. The latest Pew research also found that more people around the world see China as the top economic power, overtaking the US. A median of 41 per cent of adults across 25 countries gave the title to China, compared to 39 per cent for the US. 'This is a marked departure from two years ago, when considerably more people saw the US than China as the world's leading economy,' it said. Still, views of China and Xi still remain broadly negative. Just 36 per cent of people in the 25 nations had a favourable take on the nation. Some 66 per cent said they had little or no confidence in him. BLOOMBERG
CNA
an hour ago
- CNA
Pentagon chief downsizes contentious LA troop deployment
WASHINGTON: US Defense Secretary Pete Hegseth has ordered the withdrawal of 2,000 National Guard troops from Los Angeles, roughly halving the contentious deployment in the city, the Pentagon said on Tuesday (Jul 15). President Donald Trump ordered thousands of National Guard and hundreds of Marines into Los Angeles last month in response to protests over federal immigration sweeps - a move opposed by city leaders and California's Democratic Governor Gavin Newsom. "Thanks to our troops who stepped up to answer the call, the lawlessness in Los Angeles is subsiding," Pentagon spokesman Sean Parnell said in a statement. "As such, the secretary has ordered the release of 2,000 California National Guardsmen (79th IBCT) from the federal protection mission," he said. As a so-called "sanctuary city" with hundreds of thousands of undocumented people, Los Angeles has been in the crosshairs of the Trump administration since the Republican returned to office in January. After immigration enforcement raids spurred unrest and protests last month, Trump, who has repeatedly exaggerated the scale of the unrest, dispatched the National Guard and US Marines to quell the disruption. It was the first time since 1965 that a US president deployed the National Guard against the wishes of a state governor. Newsom said the troops were not necessary to address the mostly peaceful protests.
Straits Times
an hour ago
- Straits Times
Trump unveils investments to power AI boom
Find out what's new on ST website and app. US President Donald Trump during the inaugural Pennsylvania Energy and Innovation Summit in Pittsburgh, Pennsylvania, on July 15. PITTSBURGH - US President Donald Trump went to Pennsylvania on July 15 to announce $92 billion in energy and infrastructure deals intended to meet big tech's soaring demand for electricity to fuel the AI boom. Mr Trump made the announcement at the inaugural Pennsylvania Energy and Innovation Summit at Carnegie Mellon University, with much of the talk about beating China in the global AI race. 'Today's commitments are ensuring that the future is going to be designed, built and made right here in Pennsylvania and right here in Pittsburgh, and I have to say, right here in the United States of America,' Mr Trump said at the event. The tech world has fully embraced generative AI as the next wave of technology, but fears are growing that its massive electricity needs cannot be met by current infrastructure, particularly in the United States. Generative AI requires enormous computing power, mainly to run the energy-hungry processors from Nvidia, the California-based company that has become the world's most valuable company by market capitalisation. Officials expect that by 2028, tech companies will need as much as five gigawatts of power for AI – enough electricity to power roughly five million homes. Top executives from Palantir, Anthropic, Exxon and Chevron attended the event. Top stories Swipe. Select. Stay informed. Singapore Las Vegas Sands' new development part of S'pore's broader, more ambitious transformation: PM Wong Singapore 'Kpods broke our marriage, shattered our children': Woman on husband's vape addiction Business US tariffs may last well after Trump; crucial for countries to deepen trade ties: SM Lee World Trump says Indonesia to face 19% tariff under trade deal Multimedia Telling the Singapore story for 180 years Life Walking for exercise? Here are tips on how to do it properly Singapore CDL's long-time director Philip Yeo to depart after boardroom feud Singapore 'Nobody deserves to be alone': Why Mummy and Acha have fostered over 20 children in the past 22 years The funding will cover new data centres, power generation, grid infrastructure, AI training, and apprenticeship programs. Race to beat China Among investments, Google committed US$25 billion (S$32 billion) to build AI-ready data centres in Pennsylvania and surrounding regions. 'We support President Trump's clear and urgent direction that our nation invest in AI... so that America can continue to lead in AI,' said Ms Ruth Porat, Google's president and chief investment officer. The search engine giant also announced a partnership with Brookfield Asset Management to modernise two hydropower facilities in Pennsylvania, representing 670 megawatts of capacity on the regional grid. Investment group Blackstone pledged more than US$25 billion to fund new data centres and energy infrastructure. US Senator David McCormick, from Pennsylvania, said the investments 'are of enormous consequence to Pennsylvania, but they are also crucial to the future of the nation'. His comments reflect the growing sentiment in Washington that the United States must not lose ground to China in the race to develop AI. 'We are way ahead of China and the plants are starting up, the construction is starting up,' Mr Trump said. The US president launched the 'Stargate' project in January, aimed at investing up to US$500 billion in US AI infrastructure – primarily in response to growing competition with China. Japanese tech investor SoftBank, ChatGPT-maker OpenAI, and Oracle are investing US$100 billion in the initial phase. Mr Trump has also reversed many policies adopted by the previous Biden administration that imposed checks on developing powerful AI algorithms and limits on exports of advanced technology to certain allied countries. He is expected to outline his own blueprint for AI advancement later in July. AFP
