US, EU agree on 15% tariff
Trump had said Washington would impose a 30 percent levy on goods from the EU starting on August 1.
But he told reporters on Sunday after a meeting with European Commission President Ursula von der Leyen that the rate will be set at 15 percent.
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Yomiuri Shimbun
22 minutes ago
- Yomiuri Shimbun
Euro Rises after US, EU Agree to Tariff Deal
TOKYO, July 28 (Reuters) – The euro gained on Monday following the announcement of a framework trade agreement between the United States and the European Union, the latest in a flurry of deals to avert a global trade war. Meeting in Scotland on Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the deal, which will result in a 15% tariff on EU goods, half what Trump had threatened to impose from August 1. Senior U.S. and Chinese negotiators are due to meet in Stockholm on Monday with an aim to extend a trade truce and prevent steep tariff hikes. Meanwhile, investor attention is shifting towards corporate earnings and central bank meetings in the U.S. and Japan. 'It could be a positive week, just purely from the fact that now we know the rules of the game, if you like,' said Rodrigo Catril, senior currency strategist at National Australia Bank. 'Now that there is more clarity, you would think that not only in the U.S., but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are,' he said on a NAB podcast. The euro stood at $1.1763 EUR=, up 0.2% so far in Asia. The common currency rose 0.2% to 173.78 yen EURJPY=EBS. Trump said the EU plans to invest some $600 billion in the U.S. and dramatically increase its purchases of American energy and military equipment. The pact is similar to one forged with Tokyo negotiators last week that will see Japan investing some $550 billion in the U.S. and a 15% tariff imposed on its cars and other imports. The baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal. China is facing an August 12 deadline to reach a durable trade pact with the U.S. No breakthrough is expected in the U.S. and China talks in Stockholm, but analysts said another 90-day extension of a trade truce struck in mid-May was likely. The U.S. dollar advanced on Friday, bolstered by solid economic data that suggested the Federal Reserve could take its time in resuming interest rate cuts. Both the Fed and the Bank of Japan are expected to hold rates steady at this week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next moves. The dollar was little changed at 147.68 yen JPY=. The dollar index =USD, which tracks the greenback against major peers, fell 0.1% to 97.534. Sterling traded at $1.34385 GBP=D3, down almost 0.1%. The Australian dollar fetched $0.6576 AUD=D3, up 0.2%, while New Zealand's kiwi dollar was flat at $0.6019 NZD=D3.
Yomiuri Shimbun
22 minutes ago
- Yomiuri Shimbun
US-EU Deal Sets a 15% Tariff on Most Goods and Averts the Threat of a Trade War with a Global Shock
EDINBURGH, Scotland (AP) — The United States and the European Union agreed on Sunday to a trade framework setting a 15% tariff on most goods, staving off — at least for now — far higher imports on both sides that might have sent shock waves through economies around the globe. The sweeping announcement came after President Donald Trump and European Commission chief Ursula von der Leyen met briefly at Trump's Turnberry golf course in Scotland. Their private sit-down culminated months of bargaining, with the White House deadline Friday nearing for imposing punishing tariffs on the EU's 27 member countries. 'It was a very interesting negotiation. I think it's going to be great for both parties,' Trump said. The agreement, he said, was 'a good deal for everybody' and 'a giant deal with lots of countries.' Von der Leyen said the deal 'will bring stability, it will bring predictability, that's very important for our businesses on both sides of the Atlantic.' Many facets will require more work As with other, recent tariff agreements that Trump announced with countries including Japan and the United Kingdom, some major details remain pending in this one. Trump said the EU had agreed to buy some $750 billion worth of U.S. energy and invest $600 billion more than it already is in America — as well as make a major military equipment purchase. He said tariffs 'for automobiles and everything else will be a straight across tariff of 15%' and meant that U.S. exporters 'have the opening up of all of the European countries.' Von der Leyen said the 15% tariffs were 'across the board, all inclusive' and that 'indeed, basically the European market is open.' At a later news conference away from Turnberry, she said the $750 billion in additional U.S. energy purchases was actually over the next three years — and would help ease the dependence on natural gas from Russia among the bloc's countries. 'When the European Union and the United States work together as partners, the benefits are tangible,' Von der Leyen said, noting that the agreement 'stabilized on a single, 15% tariff rate for the vast majority of EU exports' including cars, semiconductors and pharmaceuticals. '15% is a clear ceiling,' she said. But von der Leyen also clarified that such a rate wouldn't apply to everything, saying that both sides agreed on 'zero for zero tariffs on a number of strategic products,' like all aircraft and component parts, certain chemicals, certain generic drugs, semiconductor equipment, some agricultural products, natural resources and critical raw materials. It is unclear if alcohol will be included in that list. 'And we will keep working to add more products to this list,' she said, while also stressing that the 'framework means the figures we have just explained to the public, but, of course, details have to be sorted out. And that will happen over the next weeks.' Further EU approval needed In the meantime, there will be work to do on other fronts. Von der Leyen had a mandate to negotiate because the European Commission handles trade for member countries. But the Commission must now present the deal to member states and EU lawmakers, who will ultimately decide whether or not to approve it. Before their meeting began, Trump pledged to change what he characterized as 'a very one-sided transaction, very unfair to the United States.' 'I think both sides want to see fairness,' the Republican president told reporters. Von der Leyen said the U.S. and EU combined have the world's largest trade volume, encompassing hundreds of millions of people and trillions of dollars and added that Trump was 'known as a tough negotiator and dealmaker.' 'But fair,' Trump said. Trump has spent months threatening most of the world with large tariffs in hopes of shrinking major U.S. trade deficits with many key trading partners. More recently, he had hinted that any deal with the EU would have to 'buy down' a tariff rate of 30% that had been set to take effect. But during his comments before the agreement was announced, the president was asked if he'd be willing to accept tariff rates lower than 15%, and he said 'no.' First golf, then trade talk Their meeting came after Trump played golf for the second straight day at Turnberry, this time with a group that included sons Eric and Donald Jr. In addition to negotiating deals, Trump's five-day visit to Scotland is built around golf and promoting properties bearing his name. A small group of demonstrators at the course waved American flags and raised a sign criticizing British Prime Minister Keir Starmer, who plans his own Turnberry meeting with Trump on Monday. Other voices could be heard cheering and chanting 'Trump! Trump!' as he played nearby. On Tuesday, Trump will be in Aberdeen, in northeastern Scotland, where his family has another golf course and is opening a third next month. The president and his sons plan to help cut the ribbon on the new course. The U.S. and EU seemed close to a deal earlier this month, but Trump instead threatened the 30% tariff rate. The deadline for the Trump administration to begin imposing tariffs has shifted in recent weeks but is now firm and coming Friday, the administration insists. 'No extensions, no more grace periods. Aug. 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go,' U.S. Commerce Secretary Howard Lutnick told 'Fox News Sunday' before the EU deal was announced. He added, however, that even after that 'people can still talk to President Trump. I mean, he's always willing to listen.' Without an agreement, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes. If Trump eventually followed through on his threat of tariffs against Europe, meanwhile, it could have made everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the United States. 'I think it's great that we made a deal today, instead of playing games and maybe not making a deal at all,' Trump said. 'I think it's the biggest deal ever made.'
Japan Times
22 minutes ago
- Japan Times
Epstein furor undermines public trust and Republican election hopes: lawmakers
The uproar over disgraced financier and sex offender Jeffrey Epstein could undermine public trust in the administration of U.S. President Donald Trump, as well as Republican hopes of retaining control of Congress in the 2026 midterm elections, two U.S. lawmakers said on Sunday. Republican Rep. Thomas Massie and Democratic Rep. Ro Khanna, who want the House of Representatives to vote on their bipartisan resolution requiring full release of the government's Epstein files, said the lack of transparency is reinforcing public perceptions that the rich and powerful live beyond the reach of the judicial system. "This is going to hurt Republicans in the midterms. The voters will be apathetic if we don't hold the rich and powerful accountable," Massie, a hard-line conservative from Kentucky, told NBC's "Meet the Press" program. Republicans hope to add to their current 219-212 House majority — with four seats currently vacant — and 53-47 Senate majority in November 2026, although the U.S. political cycle traditionally punishes the party of the sitting president during midterm elections. Khanna said Attorney General Pam Bondi triggered "a crisis of trust" by saying there was no list of Epstein clients after previously implying that one existed. The change in position unleashed a tsunami of calls for her resignation from Trump's MAGA base. "This is about trust in government," the California Democrat told "Meet the Press." "This is about being a reform agent of transparency." Trump, who is playing golf and holding bilateral trade talks in Scotland, has been frustrated by continued questions about his administration's handling of investigative files related to Epstein's criminal charges and 2019 death by suicide in prison. Massie and Khanna believe they can win enough support from fellow lawmakers to force a vote on their resolution when Congress returns from its summer recess in September. But they face opposition from Republican leaders including House Speaker Mike Johnson, who sent lawmakers home a day early to stymie Democratic efforts to force a vote before the break. Johnson, who also appeared on "Meet the Press," said he favors a nonbinding alternative resolution that calls for release of "credible" evidence, but which he said would better protect victims including minors. "The Massie and Khanna discharge petition is reckless in the way that it is drafted and presented," Johnson said. "It does not adequately include those protections." Massie dismissed Johnson's claim as "a straw man" excuse. "Ro and I carefully crafted this legislation so that the victims' names will be redacted," he said. "They're hiding behind that." Trump, who weathered two impeachments and a federal probe into contacts between his 2016 campaign and Russia during his first presidential term, has tried and failed so far to distract attention from the Epstein controversy six months into his second term. On Saturday, Trump repeated his claims without evidence that 2024 Democratic presidential nominee Kamala Harris and other Democrats should be prosecuted over payment for endorsements from celebrities including Oprah Winfrey, Beyonce and the Rev. Al Sharpton. "Kamala, and all of those that received Endorsement money, BROKE THE LAW. They should all be prosecuted!" Trump said on social media. Last week he accused former President Barack Obama of "treason" over how the Obama administration treated intelligence about Russian interference in U.S. elections nine years ago, drawing a rebuke from an Obama spokesperson. Republican Sen. Lindsey Graham, a staunch Trump ally, said on Sunday that Tulsi Gabbard, Trump's director of national intelligence, had found new information that investigators initially discovered no evidence of Russian election interference but changed their position after Obama told them to keep looking. "I'm not alleging he committed treason, but I am saying it bothers me," Graham told "Meet the Press." "The best way to handle this is if there is evidence of a crime being committed, or suspected evidence of a crime being committed, create a special counsel to look at it," Graham added. Democratic Rep. Jason Crow dismissed Gabbard's claims, telling the "Fox News Sunday" program that the national intelligence director had turned herself into "a weapon of mass distraction." The Department of Justice has said it is forming a strike force to assess Gabbard's claims.
