EU chief says Brussels ‘ready' for US trade deal ahead of talks
EU trade chief Maros Sefcovic is in Washington and due to meet his US counterparts later Thursday.
The commission, leading trade policy for the 27-nation bloc, has until Wednesday next week to strike an agreement or see President Donald Trump's sweeping tariffs snap back.
If no deal is reached, the default tariff on EU imports is expected to double to 20 percent or even higher -- Trump having at one point threatened 50 percent.
'We are aiming at the ninth of July,' von der Leyen told reporters in Aarhus, Denmark.
'It's a huge task because we have the largest trade volume globally between the European Union and the United States,' worth 1.5 trillion euros ($1.8 trillion).
'What we are aiming at is an agreement in principle,' she added.
The size of trade between the two transatlantic allies meant an agreement in detail was 'impossible' to conclude in the 90-day window ending next week, she added.
Von der Leyen's comments came as German Chancellor Friedrich Merz reiterated his call for a 'quick and simple' EU deal with Washington -- a matter of necessity for key industries from pharmaceuticals to engineering and automobiles.
The EU chief also made it clear that Brussels would not hold back from taking countermeasures to protect the European economy if talks fell short.
'We want a negotiated solution, but you all know that at the same time, we're preparing for the possibility that no satisfactory agreement is reached,' she said.
'This is why we consulted on a rebalancing list, and we will defend the European interest as needed,' she added.
'In other words, all the interim instruments are on the table.'
The EU has prepared counter-tariffs on US goods worth around 100 billion euros if talks yield no positive outcome. – AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
Analysis-Trump's tariff deadline delay brings hope, confusion to trade partners, businesses
WASHINGTON (Reuters) -U.S. President Donald Trump's latest tariff delay provided some hope to major trade partners Japan, South Korea and the European Union that deals to ease duties could still be reached, while bewildering some smaller exporters such as South Africa and leaving companies with no clarity on the path forward. Trump's form letters to 14 countries informing them of planned tariff rates of 25% to 40% provided what he called a final warning on his "reciprocal" tariffs, while pushing back Wednesday's previous deadline to August 1, a date he said on Tuesday was final, declaring: "No extensions will be granted." The move reflects Trump's frustration with trade negotiations that are proving lengthier and more complicated than the "90 deals in 90 days" that he expected, trade experts and administration officials say. The president, who announced on Tuesday a 50% tariff on imported copper and said long-threatened levies on semiconductors and pharmaceuticals were coming soon,said he has long favored simple tariffs over tedious trade talks that often involve red lines for some countries and their own requests for U.S. concessions. Japanese Prime Minister Shigeru Ishiba focused on the positive, saying his government would press ahead with negotiations toward a deal that "benefits both countries, while protecting Japan's national interest." Facing a 25% general U.S. tariff, Japan wants relief for its export-dependent auto industry from Trump's separate 25% automotive tariffs. It also has resisted demands for increased purchases of American rice. Japan, once viewed as an early favorite for a deal, faces an upper house election on July 20 and too many concessions could put Ishiba's ruling Liberal Democratic Party at risk. "These countries are not folding. They're not giving him what he wants, so he's added another threat," said William Reinsch, a former U.S. Commerce Department official who is a senior trade adviser at the Center for Strategic and International Studies. "He's put a new number to it and extended the deadline." South Korea, where President Lee Jae Myung has been in office less than a month, also pledged to intensify talks for "a mutually beneficial result" while analysts warned he would not be "a pushover" for Trump or put South Korea at a disadvantage to Japan. Stephen Miran, chairman of the White House's Council of Economic Advisers, told Fox News on Tuesday more deals were possible even before the end of this week, as long as countries made concessions deemed worthy by Trump. India, in particular, looked close to a deal, but prospects were less clear for smaller countries such as South Africa, Thailand and Malaysia, which face tariffs of 30%, 36% and 25%, respectively. South African President Cyril Ramaphosa pushed back on Trump's 30% tariff rate, calling it out of sync with an average 7.6% South African tariff rate. But he instructed his negotiators to "urgently engage" with Trump's team on a framework first submitted by the South African side on May 20. The Trump administration's negotiating time may be eaten up with larger partners, such as the EU, which did not get a warning letter or a change to its prescribed 20% tariff rate, double the 10% baseline. Sources familiar with the EU talks have told Reuters a deal could involve carve-outs for aircraft and parts, medical equipment and alcoholic spirits. They say the EU also wants certain automakers to export to the U.S. at rates below the 25% auto tariff. Such a deal would be similar to a framework agreement with the United Kingdom that had carve-outs for autos, steel and aircraft engines. FINAL SQUEEZE After announcing his global "Liberation Day" tariffs of 11%-50% in early April, Trump quickly dialed them back to 10% for most countries amid bond market turmoil to buy time for negotiations to lower foreign tariffs and trade barriers. Ryan Majerus, another former U.S. Commerce official, said Trump's three-month pause had not produced the desired results, and now the president was seeking to maximize his negotiating leverage. "They're going to pressure-test things and see how far they can go, particularly for countries where there hasn't been any movement in the talks," said Majerus, who is a partner at Washington's King and Spalding law firm. Steadier markets and strong economic data give Trump some room to maneuver, but time is short and "the more granular you get in negotiating these things, the tougher the sledding gets," he added. The deadline extension provides no relief to companies that are trying to keep up with Trump's tariffs. Executives say the rapidly shifting tariff landscape has paralyzed decision-making as they try to adjust their supply chains and cost structures to avoid tariff-induced price hikes. "No company can really prepare for this," said Hubertus Breier, chief technology officer for Germany's Lapp Holdings, a family-owned maker of cables, wires and robotics for factories. "We are already incurring losses simply because of the uncertainty of the daily changing situation." Lapp has difficult choices - absorb additional costs or pass them on to customers. Assuming permanently higher prices and costs, however, could threaten its long-term existence, Breier added. DeMejico, a family business in Valencia, California with a plant in Mexico that builds traditional Spanish and Mexican-style furniture, is struggling to adapt to Trump's 50% tariffs on imported steel. Robert Luna, the company's president, said the firm is importing heavy steel latches, hinges and trim parts separately to simplify the tariff calculation process and installing them at its Los Angeles-area showroom. The tariffs and higher U.S. wage costs are already inflating prices, and DeMejico faces further cost increases on furniture if Trump hits Mexico with a reciprocal tariff, Luna said. "It's hard to do anything about this as a small business owner, so I just try to be stoic and see what happens," Luna said, adding: "My biggest worry is just keeping the company alive." Luna said he thought the Trump administration was "setting up the foundation to train people to pay tariffs." (Reporting by David Lawder and Andrea Shalal in Washington, Timothy Aeppel in New York and Max Schwarz and Tilman Blasshofer in Frankfurt; additional reporting by Doina Chiacu in Washington; Writing by David Lawder; Editing by Paul Simao)
The Star
3 hours ago
- The Star
Britain facing bleak outlook for public finance, says OBR
LONDON, July 8 (Xinhua) -- The United Kingdom (UK) is facing a bleak outlook for public finances, the Office for Budget Responsibility (OBR) said Tuesday. The UK government's deficit stood at 5.7 percent of GDP at the end of 2024, approximately 4 percentage points higher than the average for advanced economies, according to a fiscal risks and sustainability report released by the office. This figure ranked as the third highest among 28 advanced European economies and the fifth highest among 36 advanced economies. Meanwhile, the government's debt reached 94 percent of GDP, the fourth highest among advanced European economies and the sixth highest among advanced economies. OBR said successive governments have failed to take the tough decisions needed to start bringing the deficit under control. "Efforts to put the UK's public finances on a more sustainable footing have met with only limited and temporary success in recent years," said the report. The OBR warned of a "substantial erosion of the UK's capacity to respond to future shocks and growing pressures on public finances," noting that underlying public debt is now at its highest level since the early 1960s and is projected to increase further in the medium term. The report added that the debt burden will become increasingly difficult to manage as economic growth slows and interest rates rise. Demographic pressures from an aging population, along with rising healthcare and other age-related costs, are also expected to push borrowing even higher in the long run.
The Star
3 hours ago
- The Star
Libya's eastern-based government bars entry of EU migration commissioner, three ministers
FILE PHOTO: Magnus Brunner, the nominee to become the European Union's commissioner for Internal Affairs and Migration, faces a confirmation hearing before a European Parliament committee, in Brussels, Belgium November 5, 2024. REUTERS/Johanna Geron/File Photo TRIPOLI (Reuters) -The European Union migration commissioner and ministers from Italy, Malta and Greece were denied entry to the eastern part of divided Libya on Tuesday as they had disregarded "Libyan national sovereignty", the Benghazi-based government said. The delegation had arrived to attend a meeting with the parallel government of Osama Hamad, allied to military commander Khalifa Haftar who controls the east and large areas of southern Libya, shortly after a meeting with the rival, internationally recognised government that controls the west of Libya. The delegation included EU Internal Affairs and Migration Commissioner Magnus Brunner, Greek Migration and Asylum minister Thanos Plevris, Italian Interior Minister Matteo Piantedosi and Maltese Home Affairs Minister Byron Camilleri. The Benghazi-based government said the visit was cancelled upon the delegation's arrival at Benghazi airport whereupon the ministers were declared persona non grata and told to leave Libyan territory immediately. Members of the European delegation did not immediately respond to Reuters requests for comment. The Hamad government had said on Monday all foreign visitors and diplomatic missions should not come to Libya and move inside the country without its prior permission. Earlier in the day the EU delegation had met in Tripoli with the U.N.-recognised government of Abdulhamid Dbiebah to discuss the migration crisis before flying to Benghazi. Libya has become a transit route for migrants fleeing conflict and poverty to Europe across the Mediterranean since the fall in 2011 of dictator Muammar Gaddafi to a NATO-backed uprising. Factional conflict has split the country since 2014. Dbeibah said during the meeting he had tasked his interior ministry with developing a national plan to tackle migration "based on practical cooperation with partners and reflecting a clear political will to build sustainable solutions". (Reporting and writing by Ahmed Elumami with additional reporting by Ayman Werfali in Benghazi; editing by Alexander Dziadosz and Mark Heinrich)
