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EU-US tariffs: five key takeaways from the trade deal
EU-US tariffs: five key takeaways from the trade deal

The Guardian

time2 days ago

  • Business
  • The Guardian

EU-US tariffs: five key takeaways from the trade deal

Donald Trump has announced a deal with the EU imposing tariffs of 15% on most goods entering the US from Europe and requiring the bloc to make huge investments in US energy products, averting a trade war between the two of the world's largest economies. Though the 15% rate is half of what Trump had threatened, many will be disappointed by it. When the UK accepted tariffs of 10% in its trade deal with the US in May, it was widely reported that European leaders considered it to be a bad deal. Brussels also agreed to buy, over three years, $750bn (£560bn) worth of oil, gas, nuclear fuel and semi-conductors, including liquified gas, while at the same time agreeing to invest $600bn (£446bn) in the US, including purchases of military equipment, according to Trump. One analyst suggested the deal was a 'big win' for the US president while it was less clear what the EU gained. 'A 15% tariff on European goods, forced purchases of US energy and military equipment and zero tariff retaliation by Europe, that's not negotiation, that's art of the deal.,' Prashant Newnaha, senior Asia-Pacific rates strategist at TD securities said. Here are five key takeaways: The US will keep in place a 50% tariff on steel and aluminium according to Trump, although European Commission chief Ursula von der Leyen said the tariffs on steel could be replaced with a quota system with further negotiation. There was also confusion over pharmaceuticals after Trump said the sector would not be included, however a senior US official later confirmed that they were in fact covered by the 15% tariff. According to von der Leyen, zero tariffs will apply to a range of sectors including 'all aircraft and component parts, certain chemicals, certain generics, semiconductor equipment, certain agricultural products, natural resources and critical raw materials'. But there was ongoing uncertainty for some industries – Sunday's announcement did not clear up what tariffs European wine and spirits producers will face in the US. Carsten Nickel, deputy director of research at Teneo, said Sunday's accord was 'merely a high-level, political agreement' that could not replace a carefully hammered out trade deal: 'This, in turn, creates the risk of different interpretations along the way, as seen immediately after the conclusion of the US-Japan deal.' On Sunday, a senior US administration official told reporters in Washington that Trump retained the ability to increase the tariffs in the future if European countries do not live up to the investment commitments contained in the deal. The deal creates a division on the island of Ireland, as traders in Northern Ireland can sell into the US on a 10% tariff rate, courtesy of the UK deal, while their neighbours in Ireland will be hit with the 15% rate. The disparity will make for difficult diplomatic conversations over guarantees to maintain stability on the entire island in the Good Friday agreement, which had already been rocked by the fallout from Brexit, when customs arrangements involving Northern Ireland became a huge headache for EU and UK negotiators. Ireland's deputy prime minister, Simon Harris, said he 'regretted' the 15% tariff rate but said 'certainty' was important. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector. German carmakers, VW, Mercedes and BMW were some of the hardest hit by the 27.5% US tariff on car and parts imports now in place. But the powerful BDI federation of industrial groups was vocal in its disappointment. 'Even a 15% tariff rate will have immense negative effects on export-oriented German industry,' said Wolfgang Niedermark, a member of the federation's leadership. The country's VCI chemical trade association said the accord left rates 'too high'. The impact of the tariffs is likely to be substantial on some companies; automaker Volkswagen said it suffered a 1.3bn euro ($1.5bn) hit to profit in the first half of the year from the higher tariffs. Though von der Leyen framed the agreement as a 'good deal' that would bring 'stability' and 'predictability', Brussels' original aim in the talks was for a 'zero-for-zero' tariff deal and tariffs remain far higher than historically. 'The crippling uncertainty is largely over, the deal is bearable for the EU,' said Holger Schmieding, chief economist at Berenberg Bank. 'Trump can claim that the asymmetric deal is a 'win' for him. But of course, the outcome is still bad relative to the situation that prevailed before Trump started his trade wars.' US consumers are also likely to bear the costs of tariffs as companies pass on the expense in increased prices, many economists have warned. With agencies

Agreements between US, Indonesian firms in leadup to trade deal
Agreements between US, Indonesian firms in leadup to trade deal

Reuters

time16-07-2025

  • Business
  • Reuters

Agreements between US, Indonesian firms in leadup to trade deal

JAKARTA, July 16 (Reuters) - U.S. President Donald announced a trade agreement with Indonesia that would see Washington lower its tariff rates to 19% from a threatened 32%. The deal includes increased Indonesian purchases of U.S. airplane, energy and farm products to help offset the nearly $18 billion trade balance in favour of Jakarta. Here is what we know about the deal so far: Trump said that the deal includes Indonesia purchasing $15 billion worth of U.S. energy products, without giving specific details. Indonesian state energy company Pertamina [RIC:RIC: said on Wednesday it had signed memorandums of understanding with several U.S. companies to optimise feedstock and crude oil purchases. The agreements also included exploring collaborations in the refinery sector. Last week, Reuters reported that the deal would include purchases from U.S. companies Exxon Mobil Corp (XOM.N), opens new tab and Chevron (CVX.N), opens new tab. Trump also said the deal included $4.5 billion in Indonesian purchases of American agricultural products. Last week, Indonesia's wheat flour mills association signed an agreement worth around $1.25 billion with U.S. counterparts to buy at least 1 million metric tons of U.S. wheat per year from 2026 until 2030. Reuters reported exclusively that the deal would include purchases by instant-noodle giant Indofood ( opens new tab while U.S. counterparts include Cargill [RIC:RIC: Bunge Global SA (BG.N), opens new tab, Pacificor, Archer-Daniels-Midland (ADM.N), opens new tab, Columbia Grain International, and United Grain Corporation. The U.S. exported nearly 700,000 tons of wheat to Indonesia in 2024, making it the third-biggest export destination after Australia and Canada, data from a local association showed. The deal on agriculture purchases also includes soybeans, corn, and cotton, but details on quantities is not yet known. Indonesia has committed to purchasing 50 Boeing (BA.N), opens new tab jets, Trump said. He did not provide details of the timeline of the purchases. It was reported earlier that agreements on the purchase of aircraft would involve state carrier Garuda Indonesia ( opens new tab. Garuda's CEO said last week the firm was in talks with U.S. Boeing to buy up to 75 planes, including 737 MAX 8 and 787 jets.

High-ranking Tesla executive departs after decade-long run at the company: 'It's hard to put into words'
High-ranking Tesla executive departs after decade-long run at the company: 'It's hard to put into words'

Yahoo

time09-06-2025

  • Automotive
  • Yahoo

High-ranking Tesla executive departs after decade-long run at the company: 'It's hard to put into words'

Another longtime high-ranking Tesla employee has left the company. Mark Westfall, who led a team of 50 engineers working on energy products, announced in April that he had left Tesla, Electrek reported. He worked on such projects as Supercharger, Powerwall, and Megapack. Westfall had worked at the electric vehicle pioneer for 10 years. "It's hard to put into words what Tesla has meant to me," Westfall wrote on LinkedIn. "I never imagined the places this job would take me, or the impact I would be able to have." According to Electrek, Westfall left to become director of engineering at Redwood Materials, which itself has many ties to Tesla. The company buys scrap materials from Tesla's battery-manufacturing process, which it then recycles to create new battery materials. Tesla co-founder and board member JB Straubel founded Redwood, and several of its executives are former Tesla employees. Westfall became the latest high-ranking employee to leave Tesla so far in 2025. It has also said goodbye to the head of its Indian market, a vice president of software engineering, the technical program manager for its Cortex supercomputer, and two of its top automotive designers. This mass departure of talent comes at a time when Tesla's business has been slipping. The company's 2025 first-quarter sales numbers are down globally, and its net income dropped 71% from Q1 2024. Overall, however, EV sales continue to grow as more people discover the environmental and economic benefits of switching to an EV. Although some models cost more up front than their gas-powered counterparts, EVs typically have much lower maintenance costs and don't require regular, costly fill-ups. The ownership costs can come down even more when an owner pairs their EV with solar panels, which allow EV drivers to rely less on public charging stations and avoid reliance on the grid for recharging at home. Those interested in solar can save up to $10,000 on installation costs by using EnergySage's free service to compare local, vetted installers. What do you think of Tesla and Elon Musk? Elon is the man Love the company; hate the CEO I'm not a fan of either I don't have an opinion Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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