Latest news with #US750
The Advertiser
2 days ago
- Business
- The Advertiser
Trump considering 'world tariff' of 15-20 per cent
US President Donald Trump says most trading partners that do not negotiate separate trade deals will soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he imposed in April. Trump told reporters his administration will notify about 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20 per cent range," Trump told reporters, sitting alongside UK Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of US trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50 per cent on some countries - including Brazil - starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates including India, Pakistan, Canada and Thailand among others. The US president on Sunday clinched a huge trade deal with the European Union that includes a 15 per cent tariff on most EU goods, $US600 billion ($A920 billion) of investments in the US by European firms and $US750 billion in energy purchases over the next three years. That followed a $US550-billion deal with Japan last week and smaller agreements with the United Kingdom, Indonesia and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday - Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favours straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the US were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35 per cent announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75 per cent of its exports to the United States - would likely have to accept some tariffs. US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes, seeking to extend a truce on tariffs by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. China's Vice Premier He Lifeng was also seen at the venue. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after the two governments reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Negotiators from the two sides were seen exiting the office about 8pm and did not stop to speak with reporters. The discussions are expected to resume on Tuesday. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. US President Donald Trump says most trading partners that do not negotiate separate trade deals will soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he imposed in April. Trump told reporters his administration will notify about 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20 per cent range," Trump told reporters, sitting alongside UK Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of US trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50 per cent on some countries - including Brazil - starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates including India, Pakistan, Canada and Thailand among others. The US president on Sunday clinched a huge trade deal with the European Union that includes a 15 per cent tariff on most EU goods, $US600 billion ($A920 billion) of investments in the US by European firms and $US750 billion in energy purchases over the next three years. That followed a $US550-billion deal with Japan last week and smaller agreements with the United Kingdom, Indonesia and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday - Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favours straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the US were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35 per cent announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75 per cent of its exports to the United States - would likely have to accept some tariffs. US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes, seeking to extend a truce on tariffs by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. China's Vice Premier He Lifeng was also seen at the venue. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after the two governments reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Negotiators from the two sides were seen exiting the office about 8pm and did not stop to speak with reporters. The discussions are expected to resume on Tuesday. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. US President Donald Trump says most trading partners that do not negotiate separate trade deals will soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he imposed in April. Trump told reporters his administration will notify about 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20 per cent range," Trump told reporters, sitting alongside UK Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of US trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50 per cent on some countries - including Brazil - starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates including India, Pakistan, Canada and Thailand among others. The US president on Sunday clinched a huge trade deal with the European Union that includes a 15 per cent tariff on most EU goods, $US600 billion ($A920 billion) of investments in the US by European firms and $US750 billion in energy purchases over the next three years. That followed a $US550-billion deal with Japan last week and smaller agreements with the United Kingdom, Indonesia and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday - Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favours straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the US were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35 per cent announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75 per cent of its exports to the United States - would likely have to accept some tariffs. US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes, seeking to extend a truce on tariffs by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. China's Vice Premier He Lifeng was also seen at the venue. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after the two governments reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Negotiators from the two sides were seen exiting the office about 8pm and did not stop to speak with reporters. The discussions are expected to resume on Tuesday. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely. US President Donald Trump says most trading partners that do not negotiate separate trade deals will soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he imposed in April. Trump told reporters his administration will notify about 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20 per cent range," Trump told reporters, sitting alongside UK Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of US trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50 per cent on some countries - including Brazil - starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates including India, Pakistan, Canada and Thailand among others. The US president on Sunday clinched a huge trade deal with the European Union that includes a 15 per cent tariff on most EU goods, $US600 billion ($A920 billion) of investments in the US by European firms and $US750 billion in energy purchases over the next three years. That followed a $US550-billion deal with Japan last week and smaller agreements with the United Kingdom, Indonesia and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday - Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favours straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the US were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35 per cent announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75 per cent of its exports to the United States - would likely have to accept some tariffs. US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes, seeking to extend a truce on tariffs by three months. US Treasury Chief Scott Bessent was part of a negotiating team that arrived at Rosenbad, the Swedish prime minister's office in central Stockholm, in the early afternoon. China's Vice Premier He Lifeng was also seen at the venue. China is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration, after the two governments reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Negotiators from the two sides were seen exiting the office about 8pm and did not stop to speak with reporters. The discussions are expected to resume on Tuesday. Trump touched on the talks during a wide-ranging press conference with UK Prime Minister Keir Starmer in Scotland. "I'd love to see China open up their country," Trump said. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. Trade analysts said another 90-day extension of a tariff and export control truce struck in mid-May between China and the United States was likely.
The Advertiser
3 days ago
- Business
- The Advertiser
US, China to launch new talks on tariff truce extension
Top US and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the US, including autos. The bloc will also buy $US750 billion worth of American energy and make $US600 billion worth of US investments in coming years. No similar breakthrough is expected in the US-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A US Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters before European Commission President Ursula von der Leyen struck their tariff deal. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome." US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will lead the delegations in Stockholm. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption - a decades-long goal for US policymakers. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning. Top US and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the US, including autos. The bloc will also buy $US750 billion worth of American energy and make $US600 billion worth of US investments in coming years. No similar breakthrough is expected in the US-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A US Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters before European Commission President Ursula von der Leyen struck their tariff deal. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome." US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will lead the delegations in Stockholm. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption - a decades-long goal for US policymakers. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning. Top US and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the US, including autos. The bloc will also buy $US750 billion worth of American energy and make $US600 billion worth of US investments in coming years. No similar breakthrough is expected in the US-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A US Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters before European Commission President Ursula von der Leyen struck their tariff deal. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome." US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will lead the delegations in Stockholm. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption - a decades-long goal for US policymakers. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning. Top US and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the centre of a trade war between the world's top two economies, aiming to extend a truce by three months and keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached preliminary deals in May and June to end weeks of escalating tit-for-tat tariffs and a cut-off of rare earth minerals. Without an agreement, global supply chains could face renewed turmoil from US duties snapping back to triple-digit levels that would amount to a bilateral trade embargo. The Stockholm talks come hot on the heels of Trump's biggest trade deal yet with the European Union on Sunday for a 15 per cent tariff on most EU goods exports to the US, including autos. The bloc will also buy $US750 billion worth of American energy and make $US600 billion worth of US investments in coming years. No similar breakthrough is expected in the US-China talks but trade analysts said that another 90-day extension of a tariff and export control truce struck in mid-May was likely. An extension of that length would prevent further escalation and facilitate planning for a potential meeting between Trump and Chinese President Xi Jinping in late October or early November. A US Treasury spokesperson declined comment on a South China Morning Post report quoting unnamed sources as saying the two sides would refrain from introducing new tariffs or other steps that could escalate the trade war for another 90 days. Trump's administration is poised to impose new sectoral tariffs that will impact China within weeks, including on semiconductors, pharmaceuticals, ship-to-shore cranes and other products. "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes," Trump told reporters before European Commission President Ursula von der Leyen struck their tariff deal. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia's H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. "Geneva and London were really just about trying to get the relationship back on track so that they could, at some point, actually negotiate about the issues which animate the disagreement between the countries in the first place," said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies in Washington. "I'd be surprised if there is an early harvest on some of these things but an extension of the ceasefire for another 90 days seems to be the most likely outcome." US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng will lead the delegations in Stockholm. Bessent has already flagged a deadline extension and has said he wants China to rebalance its economy away from exports to more domestic consumption - a decades-long goal for US policymakers. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon on a landmark trip to China, and a new flare-up of tariffs and export controls would likely derail planning.
Sydney Morning Herald
3 days ago
- Automotive
- Sydney Morning Herald
EU and US agree to trade deal with 15% tariffs for European exports
Frankfurt: The European Union has ended months of dispute with US President Donald Trump by accepting a deal that imposes 15 per cent tariffs on billions of dollars in exports, submitting to the terms out of concern he might otherwise punish Europe with higher penalties. The outcome appears set to lift prices for American consumers and hurt sales for European exporters, in the latest example of global brinksmanship as Trump forces tariffs on major economies in the hope of raising huge sums of revenue for the US government. In a surprise addition to the deal, the EU agreed to buy energy worth $US750 billion from the US over the years ahead – part of the bloc's broader objective of reducing reliance on Russian gas. Trump said the EU would also invest $US600 billion more in the US economy, echoing a vague investment pledge in a trade deal with Japan last week. The deal was unveiled in Scotland on Sunday during Trump's visit to his golf estates, as hundreds of protesters gathered to object to his visit, while supporters chanted his name outside some of his events. Loading 'I think this is the biggest deal ever made,' Trump told reporters after he emerged from talks with European Commission President Ursula von der Leyen. European industries were divided on the trade dispute over recent weeks, with German car makers anxious to gain a deal because of the threat to their sales from even higher tariffs, while French industry canvassed retaliation against US demands. Von der Leyen confirmed the 15 per cent tariff applied 'across the board' and framed the outcome as a win for stability.
The Age
3 days ago
- Automotive
- The Age
EU and US agree to trade deal with 15% tariffs for European exports
Frankfurt: The European Union has ended months of dispute with US President Donald Trump by accepting a deal that imposes 15 per cent tariffs on billions of dollars in exports, submitting to the terms out of concern he might otherwise punish Europe with higher penalties. The outcome appears set to lift prices for American consumers and hurt sales for European exporters, in the latest example of global brinksmanship as Trump forces tariffs on major economies in the hope of raising huge sums of revenue for the US government. In a surprise addition to the deal, the EU agreed to buy energy worth $US750 billion from the US over the years ahead – part of the bloc's broader objective of reducing reliance on Russian gas. Trump said the EU would also invest $US600 billion more in the US economy, echoing a vague investment pledge in a trade deal with Japan last week. The deal was unveiled in Scotland on Sunday during Trump's visit to his golf estates, as hundreds of protesters gathered to object to his visit, while supporters chanted his name outside some of his events. Loading 'I think this is the biggest deal ever made,' Trump told reporters after he emerged from talks with European Commission President Ursula von der Leyen. European industries were divided on the trade dispute over recent weeks, with German car makers anxious to gain a deal because of the threat to their sales from even higher tariffs, while French industry canvassed retaliation against US demands. Von der Leyen confirmed the 15 per cent tariff applied 'across the board' and framed the outcome as a win for stability.
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Trump's latest clumsy deal has unintended consequences
The threat of a full-scale trans-Atlantic trade war has been averted with the deal, or at least the outline of one, struck between the US and the European Union at the weekend. As was the case with last week's deal with Japan, however, both sides have differing interpretations of what they've agreed to. There's no disagreement on the baseline tariff of 15 per cent on all EU exports to the US imposed by the deal, which the European Commission president, Ursula von der Leyen, said was 'the best we could get.' Before Trump regained office, the average tariff on EU exports was 2.5 per cent. Exactly what the new rate will apply to, however, isn't clear. Von der Leyen said it would apply to European cars, pharmaceuticals and semiconductors, while Donald Trump said pharmaceuticals were 'unrelated to this deal.' The US has separate investigations of pharmaceuticals and semiconductors underway that could lead to sectoral tariffs on imports of those products – and another bout of confrontation and negotiation. The new baseline tariff was, Trump said, in exchange for the EU 'opening up their countries at zero tariff,' whereas the EU says the agreement for 'zero for zero' tariffs relates to certain strategic products and their parts, like chemicals, semiconductor equipment and some agricultural products, and is a framework agreement that could lead to a lowering of tariffs on other products in future. Loading The deal, like the handful of others the Trump administration has struck in recent weeks, has been described as a 'roadmap' for a detailed agreement rather than a conventional trade deal. There are, therefore, many grey areas in the agreement that will need to be filled in. The agreement, once there is a document to agree to, would also have to be ratified by the European Parliament and the 27 individual national parliaments of the EU's members before it could take effect. All Trump's bigger trade deals involve headlines rather than substantive detail. Like the deal with Japan, it envisages the EU buying a lot of US energy – $US750 billion ($A1.14 billion) of energy over the next three years, as well as weaponry. Trump also said the EU would invest $US600 billion in the US.
