Latest news with #EUdeal
The Guardian
2 days ago
- Business
- The Guardian
US-EU trade deal is a ‘dark day' for Europe, says French PM
The French prime minister, François Bayrou, said the EU had capitulated to Donald Trump's threats of ever-increasing tariffs, as he labelled the framework deal struck in Scotland on Sunday as a 'dark day' for the EU. 'It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission,' Bayrou wrote on X on Monday. Accord Van der Leyen-Trump : c'est un jour sombre que celui où une alliance de peuples libres, rassemblés pour affirmer leurs valeurs et défendre leurs intérêts, se résout à la soumission. The German chancellor, Friedrich Merz, and the Italian prime minister, Giorgia Meloni, welcomed the deal as averting a more damaging outcome. The European trade commissioner Maroš Šefčovič described it on Monday as a 'breakthrough' in the face of a potential ruinous trade war between the world's two biggest economies. The deal will impose 15% tariffs on almost all European exports to the US including cars, about triple the 4.8% tariff now in force, but avoid the threat of punitive 30% import duties being imposed on Trump's 1 August deadline for a deal. The high-level French criticism, and Emmanuel Macron's silence since the deal was signed between Trump and the European Commission president, Ursula von der Leyen, shows potential divisions as Brussels seeks to get approval for the deal from member states. Merz said the deal, which was clinched in a ballroom at Trump's golf resort in Scotland, avoided 'needless escalation in transatlantic trade relations' and averted a potentially damaging trade war. However, he said Germany would face 'substantial damage' from the tariffs but: 'We couldn't expect to achieve any more.' Meloni welcomed the deal, saying it had avoided 'potentially devastating' consequences. Speaking at a summit in Ethiopia, she said a 'trade escalation between Europe and the US would have had unpredictable and potentially devastating consequences', while adding that Rome would have to 'study the details' of the deal. The Spanish prime minister, Pedro Sánchez, said he gave his support for the deal 'without any enthusiasm'. European stock markets hit a four-month high at the start of trading on Monday, amid relief that a deal had been reached. Germany's Dax jumped by 0.86%, and France's Cac 40 index rose by 1.1%, lifting the pan-European Stoxx 600 index to its highest level since late March. However, the rally fizzled out after France made clear its disapproval. Germany's Dax, France's Cac and the Stoxx 600 all closed lower on Monday. Wall Street was roughly flat by early afternoon in New York. The euro fell by almost 1% against the US dollar, down one cent to 1.163. 'This state of affairs is not satisfactory and cannot be sustained,' the French European affairs minister, Benjamin Haddad, said on X, urging the EU to activate its 'anti-coercion instrument', which would allow for non-tariff retaliation. The French trade minister, Laurent Saint-Martin, criticised the EU's handling of the negotiations, saying the bloc should not have refrained from hitting back in what he described as a power struggle initiated by Trump. 'Donald Trump only understands force,' he told France Inter radio. 'It would have been better to respond by showing our capacity to retaliate earlier. And the deal could have probably looked different.' Fresh details have emerged of the deal, with senior officials saying the 15% tariff on EU exports would apply to 70% of goods sold to the US. Zero rates will apply to EU exports in important sectors including aircraft parts, some chemicals, semiconductor equipment and some agricultural products such as cork used in wine bottles and flooring. The EU pharmaceutical sector will not face tariffs of more than 15% under the deal it struck with Trump, officials have said. Senior EU officials revealed that pharma exports from the EU will remain duty free until such time as Trump completes his section 232 national security investigation into pharmaceuticals. Even if he does decide to impose tariffs on pharmaceuticals in the future, EU officials extracted a commitment from Trump that they will be set at a top level of 15% when it comes to EU products. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion He started his negotiations on Sunday by demanding the EU pay 30% tariffs on exports to the US, followed by 21%, and finally settled on 15% in talks that were described as 'very intense', it has emerged. The side deal will come as a big relief to Belgium, Germany, Denmark and Ireland, which have strong pharmaceutical sectors and were looking at potential tariffs of up to 200% next year, according to Trump. Further details of the deal emerged on Monday but tariffs on important sectors such as steel and wine and spirits will now be the subject of detailed negotiation. Tariffs on steel will remain at 50% until a new deal, centred on quotas, is agreed, officials have said. 'The US are very much in need of our high-speciality steel,' Šefčovic said on Monday. EU officials said agriculture barriers still firmly applied to US food imports, apart from a list of duty-free products that will be finalised in the coming days, and will include some products not produced in the EU such as nuts, some processed fish, dairy products and pet food. Wines and spirits are still on the negotiating table, and EU officials expect the list of products that will get a zero rate in the US will be extended in the coming weeks. Technically the European Commission has the mandate to press ahead with the deal, but it has sought consensus backing from member states throughout the past four months and this is not expected to change. It expects a 'relatively light' joint statement to emerge before, or on Friday, followed by executive orders issued by Trump. This will give legal status to the 15% tariff rates immediately in the US but the EU suite of tariff changes will not come into force until legal instruments have been signed, which may take longer than a week. The German bank Berenberg said the deal brought to an end the 'crippling uncertainty' but said it was a victory for Trump. 'It is great to have a deal. In two major respects, however, the outcome remains much worse than the situation before Trump started his new round of trade wars early this year,' said Holger Schmieding, Berenberg's chief economist. 'The extra US tariffs will hurt both the US and the EU. For Europe, the damage is mostly front-loaded,' Schmieding said in a note to clients on Monday morning. 'The deal is asymmetric. The US gets away with a substantial increase in its tariffs on imports from the EU and has secured further EU concessions to boot. In his apparent zero-sum mentality, Trump can claim that as a 'win' for him,' Schmieding added. The Italian bank UniCredit also said Trump had got the better of the EU. 'Is this a good deal for the EU? Probably not. The outcome is heavily asymmetrical, and it leaves US tariffs on imported EU goods at much higher levels than EU tariffs on imports from the US,' UniCredit said in a note to clients.
Fox News
4 days ago
- Business
- Fox News
Sec. Lutnick touts Trump's 'fantastic' tariff plan as Aug. 1 deadline approaches
Commerce Secretary Howard Lutnick joins 'Fox News Sunday' to weigh in on President Donald Trump's tariff plan, a potential EU deal and requirements for TikTok to remain in the U.S. through American ownership.
Arab News
4 days ago
- Business
- Arab News
Trump's meeting with a key European official comes as his tariff deadline nears
EDINBURGH: Donald Trump is meeting Sunday with European Commission President Ursula von der Leyen, taking a break from golfing in Scotland to discuss trade as both sides seek an agreement on tariff rates now that the White House's deadline to impose stiff tariff rates is looming. Trump played golf Saturday at his course in Turnberry on the southwest coast of Scotland and is expected to hit the links again frequently during his five-day visit. On Tuesday, he'll be in Aberdeen, in northeast Scotland, where his family has another golf course and is opening a third next month. Trump and his son Eric are planning to help cut the ribbon on the new course, where public tee times starting Aug. 13 are already on offer. The visit with von der Leyen is expected to be behind closed doors and few further details have been released. Leaving the White House on Friday, Trump said 'we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU.' He said the deal would have to 'buy down' the currently scheduled tariff rate of 30 percent on the bloc of 27 member states. Later, von der Leyen posted on X that, 'Following a good call' with Trump, the pair had 'agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong.' The US and EU seemed close to reaching a deal earlier this month, but Trump instead threatened a 30 percent tariff rate on the bloc of nations. Still, Trump's original deadline for beginning such tariffs has already passed, and is now delayed until at least Friday. Flying to Scotland to enjoy his golf courses hasn't stopped the president from talking trade. After going to Turnberry to play nine holes, have lunch, then play nine more, Trump posted that he'd block any trade deals between the US and Cambodia and Thailand since the two southeast Asian countries remain locked in violent clashes in long-disputed border areas. Trump wrote that he spoke with Cambodian Prime Minister Hun Manet and Phumtham Wechayachai, the acting prime minister of Thailand, to call for a ceasefire. 'I am trying to simplify a complex situation!' he wrote on Truth Social after disclosing his conversation with the Cambodian leader. After speaking with Wechayachai, Trump said both countries want peace and added: 'Ceasefire, Peace, and Prosperity seems to be a natural.' The actual likelihood of a deal with the EU, meanwhile, remains to be seen. Trump recently said he thought the odds of reaching a framework with Japan was 25 percent — but the US and Japan subsequently announced an agreement this past week. The president also bragged earlier in his term that he would leverage constant threats of steep US tariffs around the globe to negotiate better rates and shrink trade deficits with some of Washington's key allies. But, so far, that effort has fallen well short of expectations, meaning the onus may be on Trump to be able to announce an agreement with a bloc as key to global commerce as the EU. Trump is also set to meet Monday in Scotland with British Prime Minister Keir Starmer, after the two announced a trade framework in May and a larger agreement last month during the G7 in Canada. Trump says that deal is concluded and that the pair will discuss other matters — though the White House has suggested it still needs some polishing. Without an EU deal, the bloc 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 follows through on his threat of tariffs against Europe, it could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US
Yahoo
18-07-2025
- Automotive
- Yahoo
Trump pushes for 15-20% minimum tariff on all EU goods, FT reports
(Reuters) -U.S. President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached. Trump has also been unmoved by the latest EU offer to reduce car tariffs, and would keep duties on the sector at 25% as planned, the report said citing unnamed sources. Reuters could not immediately verify the report.
Reuters
18-07-2025
- Automotive
- Reuters
Trump pushes for 15-20% minimum tariff on all EU goods, FT reports
July 18 (Reuters) - U.S. President Donald Trump is pushing for a minimum tariff of 15% to 20% in any deal with the European Union, the Financial Times reported on Friday, adding that the administration is now looking at a reciprocal tariff rate that exceeds 10%, even if a deal is reached. Trump has also been unmoved by the latest EU offer to reduce car tariffs, and would keep duties on the sector at 25% as planned, the report said citing unnamed sources. Reuters could not immediately verify the report.
