Latest news with #EUUS
Reuters
16-07-2025
- Business
- Reuters
EU trade chief heads to Washington in search of tariffs solution
BRUSSELS/BERLIN, July 16 (Reuters) - EU trade chief Maros Sefcovic headed to Washington on Wednesday for tariff talks, an EU spokesperson told Reuters, adding that he will meet U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. President Donald Trump has threatened a 30% tariff on imports from the EU from August 1, a level Europe says is unacceptable and would end normal trade between two of the world's largest markets. ASML ( opens new tab, the world's biggest supplier of computer chip-making equipment, warned on Wednesday that uncertainty in tariff negotiations is spurring chipmakers in the U.S. to delay finalising investments, clouding its outlook for the full year. Its shares sank as much as 7.3% in early trading. "Trump's tariffs have only losers," German Finance Minister Lars Klingbeil told a press conference, saying the tariffs threaten the American economy at least as much as the European one. The European Commission, which oversees trade for the EU, has prepared to target 72 billion euros ($83.6 billion) worth of U.S. goods - from Boeing (BA.N), opens new tab aircraft and bourbon whiskey to cars - for possible tariffs if trade talks with Washington fail. "Our hand remains extended, but we will not go along with everything, possible countermeasures must continue to be prepared," Klingbeil told a press conference alongside his French counterpart Eric Lombard, saying the two were in full agreement. The list of possible counter-measures, sent to EU member states and seen by Reuters on Tuesday, pre-dated Trump's move over the weekend to ramp up pressure on the 27-nation bloc and was a response to U.S. duties on cars and car parts and a 10% baseline tariff. The package also covers chemicals, medical devices, electrical and precision equipment as well as agriculture and food products - a range of fruits and vegetables, along with wine, beer and spirits - valued at 6.35 billion euros. Trump's roll-out of his tariff policies has often been chaotic. His moves have upended decades of reductions in global trade barriers, unsettling financial markets, threatening a new wave of inflation and hitting European businesses hard. European companies are expected to report a drop of 0.7% in earnings and a 3% fall in revenue in the upcoming earnings season covering the second quarter, their weakest in more than a year. Shares in European carmakers, including Germany's Volkswagen, were lower after Renault's profit warning late on Tuesday, which stirred worries about the health of the auto industry as it struggles with 25% U.S. import tariffs. The only acceptable tariff on EU exports to the United States would be zero as the bloc is already facing a detrimental exchange rate, the head of Italy's business lobby said on Wednesday. "The real issue is that, to date, not only do we have to consider the burden of tariffs ... we must add to that the euro's appreciation against the dollar," said Confindustria President Emanuele Orsini. The euro has risen by more than 12% against the dollar since the start of the year. The August 1 deadline gives targeted countries time to negotiate about lower tariff rates. Some economists have also noted Trump's pattern of backing off his tariff threats. ($1 = 0.8610 euros)
CNN
14-07-2025
- Business
- CNN
Trump's 30% tariff on Europe would effectively knock out transatlantic trade, says EU trade chief
The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc. A tariff of '30%, or anything above 30%… has more or less the same effect. So, practically it prohibits the trade,' Maroš Šefčovič, the EU's trade commissioner, said as he arrived ahead of an EU ministerial meeting in Brussels on Monday. Šefčovič said it will 'be almost impossible' for the bloc to continue its current level of trade with America if that new tariff rate is implemented on August 1 – the date stipulated by US President Donald Trump in his letter to the EU on Saturday. 'If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic,' he added. 'I will definitely do everything I can to prevent this super-negative scenario.' The EU-US trade relationship is mighty. According to the European Council, EU-US bilateral trade in goods and services was worth €1.68 trillion ($1.96 trillion) last year. Together, the partners represent nearly 30% of global goods and services trade, per the Council. But Trump has repeatedly rebuked the EU for what he sees as unfair trading practices, saying in April that the 27-nation bloc was 'formed to screw' America. He has pointed to EU tariffs on US goods as well as several 'non-tariff barriers' such as taxes on digital services to support that view. Since re-taking office in January, Trump has hiked – and threatened to hike – tariffs on countries around the world to help eliminate the US' trade deficit, bring manufacturing jobs back to America and bring foreign nations to heel on key disputes. For months, EU trade officials have been negotiating with their US counterparts to avoid Trump's tariffs, or to limit their damage. But after the US president threatened in May to jack up the rate of his so-called 'reciprocal' levy on EU goods from 20% to 50%, the bloc accelerated talks. Šefčovič reiterated on Monday that the EU seeks a negotiated solution as well as his belief that one had been within touching distance before Trump's latest tariff salvo. 'The feeling on our side was that we are very close to an agreement,' he said, noting that the bloc is demonstrating 'enormous' levels of patience and creativity to secure a deal. On Sunday, the EU said it will delay the implementation of planned countermeasures on €21 billion ($25 billion) worth of US exports from Monday until early August to allow more time to negotiate an agreement. Those countermeasures are in retaliation for the 25% tariff Washington has slapped on all steel and aluminium imports. Lars Løkke Rasmussen, Denmark's foreign minister, said the bloc wants a fair deal and that it should prepare to retaliate. 'If you want peace, you have to prepare for war, and I think that's where we are. So, of course, we shouldn't impose countermeasures (at) this stage, but we should prepare to be ready to use all the tool in the toolbox,' Rasmussen said before the meeting of EU trade ministers on Monday. European stocks were falling Monday morning in the first day of trade since Trump issued his new tariff threat over the weekend. The Stoxx Europe 600, the region's benchmark index, was trading 0.27% lower by early afternoon CET. David Goldman contributed reporting.
CNN
14-07-2025
- Business
- CNN
A 30% tariff on Europe would effectively knock out transatlantic trade, says EU trade chief
The European Union has warned that its trade with the United States could be effectively wiped out if Washington makes good on its threat to slap a 30% tariff on goods imported from the bloc. A tariff of '30%, or anything above 30%… has more or less the same effect. So, practically it prohibits the trade,' Maroš Šefčovič, the EU's trade commissioner, said as he arrived ahead of an EU ministerial meeting in Brussels on Monday. Šefčovič said it will 'be almost impossible' for the bloc to continue its current level of trade with America if that new tariff rate is implemented on August 1 – the date stipulated by US President Donald Trump in his letter to the EU on Saturday. 'If (the tariff) stays 30 (percent) plus, simply trading as we know it will not continue, with huge negative effects on both sides of the Atlantic,' he added. 'I will definitely do everything I can to prevent this super-negative scenario.' The EU-US trade relationship is mighty. According to the European Council, EU-US bilateral trade in goods and services was worth €1.68 trillion ($1.96 trillion) last year. Together, the partners represent nearly 30% of global goods and services trade, per the Council. But Trump has repeatedly rebuked the EU for what he sees as unfair trading practices, saying in April that the 27-nation bloc was 'formed to screw' America. He has pointed to EU tariffs on US goods as well as several 'non-tariff barriers' such as taxes on digital services to support that view. Since re-taking office in January, Trump has hiked – and threatened to hike – tariffs on countries around the world to help eliminate the US' trade deficit, bring manufacturing jobs back to America and bring foreign nations to heel on key disputes. For months, EU trade officials have been negotiating with their US counterparts to avoid Trump's tariffs, or to limit their damage. But after the US president threatened in May to jack up the rate of his so-called 'reciprocal' levy on EU goods from 20% to 50%, the bloc accelerated talks. Šefčovič reiterated on Monday that the EU seeks a negotiated solution as well as his belief that one had been within touching distance before Trump's latest tariff salvo. 'The feeling on our side was that we are very close to an agreement,' he said, noting that the bloc is demonstrating 'enormous' levels of patience and creativity to secure a deal. On Sunday, the EU said it will delay the implementation of planned countermeasures on €21 billion ($25 billion) worth of US exports from Monday until early August to allow more time to negotiate an agreement. Those countermeasures are in retaliation for the 25% tariff Washington has slapped on all steel and aluminium imports. Lars Løkke Rasmussen, Denmark's foreign minister, said the bloc wants a fair deal and that it should prepare to retaliate. 'If you want peace, you have to prepare for war, and I think that's where we are. So, of course, we shouldn't impose countermeasures (at) this stage, but we should prepare to be ready to use all the tool in the toolbox,' Rasmussen said before the meeting of EU trade ministers on Monday. European stocks were falling Monday morning in the first day of trade since Trump issued his new tariff threat over the weekend. The Stoxx Europe 600, the region's benchmark index, was trading 0.27% lower by early afternoon CET. David Goldman contributed reporting.
Bloomberg
08-07-2025
- Business
- Bloomberg
EU Said to Be Seeking a 10% Tariff Rate Deal With the US
Good morning. The EU is rushing to lock in a 10% tariff rate with the US. Donald Trump promises to send more weapons to Ukraine. And Dubai's luxury property market is booming. Listen to the day's top stories. The EU is said to be seeking a preliminary agreement with the US that would allow it to lock in a 10% tariff rate beyond an Aug. 1 deadline. The euro strengthened after Politico reported America offered the bloc a trade deal. Donald Trump unveiled a 25% duty on Japan and South Korea as part of a raft of new levies on several trading partners, but also indicated he's open to negotiations.
Bloomberg
01-07-2025
- Business
- Bloomberg
EU to Accept Trump Universal Tariff But Seeks Key Exemptions
Supply Lines is a daily newsletter that tracks global trade. Sign up here. The European Union is willing to accept a trade arrangement with the US that includes a 10% universal tariff on many of the bloc's exports, but wants the US to commit to lower rates on key sectors such as pharmaceuticals, alcohol, semiconductors and commercial aircraft.
