Tariffs: German and French industry united on EU retaliation on aircraft sector
The German Aerospace Industries Association (BDLI) wants only completed products aircraft and helicopters to be targeted by the EU for retaliatory tariffs - leaving the market for the supply of parts unscathed - if trade negotiations between the EU and the US founder, the group has told Euronews. It's position aligns it with the French sector's stance.
'If the EU must respond, counter-tariffs should focus strictly on fully finished aerospace end products – such as complete aircraft and helicopters – and explicitly exclude spare parts or critical products,' BDLI said in an email to Euronews. 'This is essential to avoid unintended harm to European and global production networks.'
US aircraft are included in the European Commission's draft list of €95 billion worth of US products that could face duties if ongoing negotiations fail. The list was open for industry consultation until 10 June and now awaits approval by EU member states.
BDLI's position mirrors that of Airbus CEO Guillaume Faury, who also chairs the French aerospace association GIFAS. Speaking to French media in May, Faury backed tariffs on finished aircraft but warned against measures affecting spare parts, to avoid disrupting the global supply chain.
A source familiar with the matter told Euronews that the French government supports the stance of its aerospace industry.
In response to the EU's inclusion of aircraft in its draft retaliation list, the US has launched an investigation that could pave the way for the Trump administration to impose additional tariffs on the EU aerospace sector.
Trade tensions between the EU and the US risk reigniting the long-standing rivalry between aerospace giants Boeing and Airbus. However, the two economies' production systems are tightly intertwined. For instance, the LEAP engine, used in both Airbus and Boeing jets, is co-produced by US-based General Electric and France's Safran.
Aircraft remain a central issue in ongoing EU-US negotiations. Following a discussion with US President Donald Trump on the sidelines of the G7 summit in Canada on Monday, European Commission President Ursula von der Leyen said both leaders had directed their teams to accelerate negotiation.
EU Trade Commissioner Maroš Šefčovič also met with US Trade Representative Jamieson Greer on Monday, on the margins of the G7. A follow-up meeting with US counterparts is scheduled to take place in Washington on Thursday and Friday, an EU spokesperson confirmed.
The US currently imposes tariffs of 50% on EU steel and aluminium, 25% on cars, and 10% on all other EU imports. President Trump has warned he will raise tariffs on all EU imports to 50% if no 'fair' agreement is reached by 9 July.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Europe to give Iran message that US open to direct talks
By Francois Murphy, John Irish and Parisa Hafezi GENEVA (Reuters) -European foreign ministers will tell their Iranian counterpart on Friday that the U.S. is open to direct talks even as it considers joining Israeli strikes intended to smash Tehran's nuclear capacity, diplomats said before a meeting in Geneva. Foreign Minister Abbas Araqchi will be told that Iran must send a "clear signal," two diplomats told Reuters, with pressure mounting on Tehran to agree tough curbs on its nuclear programme to prevent the potential development of an atomic weapon. U.S. Secretary of State Marco Rubio spoke to several Western counterparts prior to the Geneva meeting, the diplomats said, indicating readiness to engage directly with Tehran. Washington did not confirm that, though broadcaster CNN quoted a U.S. official saying President Donald Trump supported diplomacy from allies that could bring Iran closer to a deal. Tehran, however, has repeatedly said it will not talk to the Trump government until Israeli attacks end. The ministers from Britain, France and Germany, known as the E3, plus the European Union's foreign policy chief, were meeting separately prior to planned face-to-face talks with Araqchi. "The Iranians can't sit down with the Americans whereas we can," said a European diplomat. "We will tell them to come back to the table to discuss the nuclear issue before the worst-case scenario, while raising our concerns over its ballistic missiles, support to Russia and detention of our citizens." The Trump administration is demanding Iran stop uranium enrichment altogether, whereas the E3 have in past talks left it some scope to enrich for civil ends in exchange for extremely strict international inspections of its nuclear activities. On Friday, French President Emmanuel Macron shifted closer to Trump's position, saying that any new deal with Tehran needed to go towards zero enrichment. A senior Iranian official told Reuters Iran is ready to discuss limitations on its uranium enrichment but said the prospect of zero enrichment would undoubtedly be rejected, especially while Israel was attacking Iran. IRAN DEMANDS END TO WAR The talks were due for mid-afternoon in Geneva, where an initial accord between Iran and world powers to curb its nuclear programme in return for sanctions lifting was struck in 2013 before a comprehensive deal in 2015. Separate talks between Iran and the U.S. collapsed when Israel launched what it called Operation Rising Lion against Iran's nuclear facilities and ballistic capabilities on June 12. "There is no room for negotiations with the U.S. until Israeli aggression stops," Araqchi was quoted as saying on Iranian state TV on Friday. French Foreign Minister Jean-Noel Barrot spoke to Rubio on Thursday night, during which Rubio said Washington was ready for direct contact with the Iranians any time, according to a French diplomatic source. The main message Europeans will pass to Araqchi is that the U.S. has signalled readiness for direct talks, but that Iran must give a serious signal, the two European diplomats said, without defining what the signal should be. Trump's special envoy to the Middle East, Steve Witkoff, has spoken to Araqchi several times since last week, sources say. While diplomats did not expect a breakthrough in Geneva, they said it was vital to engage with Iran because once the war stopped the nuclear issue would remain unresolved given that Tehran would still retain the scientific know-how. "Even now, if they have something to say, we will listen," Araqchi said of the Europeans. "We are not ashamed of defending our nation's rights and we are not avoiding anyone." German Foreign Minister Johann Wadephul said European powers had always been ready to talk provided Iran committed to not developing nuclear weapons. "Now it's Iran's move," he said. Trump has said he will decide within two weeks whether to join Israeli strikes.
Yahoo
36 minutes ago
- Yahoo
Nvidia Is Quickly Approaching a New Record High. Is It Too Late to Buy NVDA Stock?
As the market remains vulnerable to a plethora of uncertainties, it seems that there is one constant: the dominance of chip giant Nvidia (NVDA) in the world of artificial intelligence (AI). The stock, which took a tumble due to China-related issues, primarily related to the emergence of DeepSeek and new tariffs under President Donald Trump, has made a strong comeback and is just about 5% off from its record highs. Touted as the 'Godfather of AI' by celebrated tech analyst Dan Ives, CEO Jensen Huang and his company are critical to not only the U.S.'s global prowess in chips, but are increasingly becoming key to diplomatic negotiations. 2 Outstanding Stocks Under $50 to Buy and Hold Now 3 ETFs with Dividend Yields of 12% or Higher for Your Income Portfolio Nvidia's Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! Have investors looking to add Nvidia to their portfolios missed the train, or is there still time to load up on the stock, which is up 8.3% on a YTD basis? Let's find out. Not even a decade ago, Nvidia was a niche company, mostly popular among gamers for its GPUs. Now, after 10 years its shares have soared more than 28,000%, driving the company to a valuation above $3.5 trillion. Nvidia is also closing in on new record highs as it is just 5% shy of the record $153.13 set early in January. The company that designs and sells advanced chips and software platforms — primarily for AI, data centers, gaming, and autonomous systems – counts tech majors such as Microsoft (MSFT), Amazon (AMZN), Google (GOOGL), Tesla (TSLA), Oracle (ORCL), ChatGPT maker OpenAI, and nearly every major AI and cloud company as its customer. From hyperscalers to sovereign AI, Nvidia is becoming more and more irreplaceable. Central to this are Nvidia's Blackwell chips. According to Huang's keynote at GTC 2025, 'The Blackwell architecture significantly enhances AI model training and inference, enabling more efficient and scalable AI applications. And the next evolution of the Nvidia Blackwell AI factory platform, Blackwell Ultra, will be coming to systems in the second half of this year.' Further bolstering its dominance in the GPU industry, where it already commands a near-monopoly with a-greater-than-90% market share, Nvidia has outlined a compelling product roadmap that is expected to reinforce its leadership position even more firmly. In addition to the Blackwell Ultra platform, the company is progressing toward launching next-generation GPU systems such as the Vera Rubin NVL144, which is anticipated in the second half of 2026, and the Rubin Ultra NVL576, scheduled for release a year later in late 2027. Nvidia's influence across the AI ecosystem remains unmatched, underpinned by both its relentless hardware innovation and a deeply intertwined software stack. Nvidia's dominant market position and constant endeavours to scale and innovate has not been at the expense of its financials. In fact, Nvidia's remarkable track record of outperforming market forecasts on both revenue and earnings remained intact in the most recent quarter, solidifying what may well be one of the most impressive streaks in recent corporate history. The company's fiscal first quarter of 2026 saw total revenue surge to $44.1 billion, reflecting a robust 69% year-over-year increase. Driving this performance was Nvidia's data center segment, which contributed a dominant $39.1 billion, representing annual growth of 73%. On the bottom line, the chipmaker once again exceeded Wall Street's expectations. Earnings per share came in at $0.81, outperforming the consensus projection of $0.75. Looking ahead, analysts are anticipating further momentum, with estimates placing next quarter's earnings per share at $0.94 on revenue of $45.59 billion. That said, not all metrics were flawless. The company's gross margin declined to 61%, down from 78.9% in the corresponding period last year — a notable compression. Still, Nvidia continues to command a dominant market share in the GPU segment, easing investor concerns about intensifying competition. Management also reiterated their full-year margin guidance, aiming for levels in the mid-70% range, underscoring confidence in the underlying business model. From a cash flow perspective, Nvidia demonstrated exceptional strength. Net cash provided by operating activities reached $27.4 billion, a year-over-year increase of 79.1%. The quarter ended with the company holding $53.7 billion in cash and equivalents, and notably, no short-term debt. This highlights the firm's formidable liquidity profile and positions it favorably for ongoing capital allocation, investment, and strategic flexibility. Overall, analysts are projecting Nvdia's forward revenue and earnings growth rates to be at 59.97% and 64.95%, much higher than the sector medians of 7.14% and 11.08%, respectively. As I highlighted in a previous article, the impact of new restrictions on H20 shipments to China was lower than expected in Q1. Moreover, the company is looking for ways to alleviate the export restriction concerns by developing a different Blackwell variant. Considering all of this, analysts have attributed a rating of 'Strong Buy' for NVDA stock, with a mean target price of $174.02. This indicates upside potential of about 20% from current levels. Out of 44 analysts covering the stock, 37 have a 'Strong Buy' rating, three have a 'Moderate Buy' rating, three have a 'Hold' rating, and one has a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
37 minutes ago
- Yahoo
Israel slams UN rights council for giving floor to Iran ahead of nuclear talks
By Olivia Le Poidevin GENEVA (Reuters) -Israel's ambassador to the United Nations in Geneva has raised "vehement objection" to Iran addressing the Human Rights Council ahead of talks with European counterparts in Geneva to try to de-escalate the conflict, according to a letter seen by Reuters. "Affording the Iranian foreign minister the floor before this body continues to undermine the council's credibility and constitutes a blatant betrayal of the many victims of this regime worldwide," Daniel Meron said in a letter addressed to council president Jurg Lauber. The council said on Friday said that Iran's Foreign Minister Abbas Araghchi was due to be given the floor. Shortly afterwards, he is due to hold talks with the EU foreign policy chief and his counterparts in Britain, France and Germany in order to de-escalate the conflict. In the letter, Meron accuses Iran of using the council as a international stage to "promote the regime's despotic campaign." On Wednesday, the Iranian Ambassador to the U.N. in Geneva addressed the council and accused Israeli attacks as representing an act of "war against humanity". Israel began attacking Iran last Friday, saying it aimed to prevent its longtime enemy from developing nuclear weapons. Iran retaliated with missile and drone strikes on Israel. It says its nuclear programme is peaceful.
