Not the time to mess with EU-US trade, says EU's Costa
European Commission President Ursula von der Leyen and EU President António Costa took part in a press conference during the G7 Leaders' Summit in Alberta. (EPA Images pic)
KANANASKIS : Europe and the US should focus on how the bloc takes more responsibility for its defence rather than creating economic uncertainty through trade tensions, EU President Antonio Costa said yesterday.
Speaking to reporters with European Commission President Ursula von der Leyen ahead of a gathering of G7 leaders in the Canadian Rockies, Costa said the two days of meetings provide an opportunity to talk about 'some problems' between the allies and friends.
'The main issue between Europe and the US is precisely about European defence, and we should focus on (this),' Costa said, referring to Washington's rebalancing of foreign policy towards countering China.
'Because this is the main issue, we should avoid introducing other issues that undermine our economic capacity to assume greater responsibility on our own defence,' he said.
US President Donald Trump backed away from his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks between Washington and the 27-nation bloc to produce a deal.
Trump's haphazard imposition of tariffs across the world has created uncertainty among key US allies, and raised pressure on the global economy.
Speaking alongside Costa, von der Leyen said the trade talks with Washington were now focusing on the details, but there was no guarantee of a deal.
'That's why this is not the right moment to create uncertainty on economics.
'It is not the right moment to create problems on trade, because we need to strengthen our economic basis,' Costa said.
'We are talking about the most relevant trade relations in the world, then we need to protect this and focus on what is the most important which is to have a good agreement between the EU and the US about the burden sharing on defence,' he said.
Underscoring Costa's comments, von der Leyen said the G7 had to avoid protectionism.
'This is an important message. A message that the G7 can send to the markets and to the world,' she said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
2 days ago
- Free Malaysia Today
Norway's central bank announces surprise rate cut
Norges Bank lowered its policy rate by a quarter point to 4.25% and said it could make another cut this year. (Reuters pic) OSLO : Norway's central bank announced a surprise interest rate cut today, citing economic uncertainty linked to trade tensions and escalating conflicts. Norges Bank lowered its policy rate by a quarter point to 4.25% and said it could make another cut this year 'if the economy evolves broadly as currently projected'. The bank had kept its rate unchanged since December 2023 after hiking them in efforts to tame inflation. Analysts had expected the bank to keep its rate unchanged until September. Norges Bank governor Ida Wolden Bache said inflation had declined since its March monetary policy meeting. 'The inflation outlook for the coming year indicates lower inflation than previously expected,' she said. 'A cautious normalisation of the policy rate will pave the way for inflation to return to target without restricting the economy more than necessary.' Core inflation – which excludes volatile energy prices – slowed to 2.8% in May. While it is cooling, inflation remains above the central bank's 2% target. The rate cut comes as financial markets worry about the economic impact of US President Donald Trump's tariffs and the conflict between Israel and Iran. 'The uncertainty surrounding the outlook is greater than normal,' Norges Bank said in a statement. 'An escalation of conflicts between countries and uncertainty about future trade policies may result in renewed financial market turbulence and could impact both Norwegian and international growth prospects,' it said. 'If the economy takes a different path than currently envisaged, the policy rate path may also differ from that implied by the forecast,' the bank added.
Free Malaysia Today
2 days ago
- Free Malaysia Today
Global investment decline may worsen due to tariffs, warns UN trade agency
UNCTAD secretary-general Rebeca Grynspan said investment that has a real impact on jobs and infrastructure is going down. (EPA Images pic) GENEVA : Global foreign direct investment (FDI) fell for the second consecutive year in 2024, with fears this year could be even worse as trade tensions rock investor confidence, the UN agency for trade and development said in a report published today. FDI transactions, which do not include several European conduit economies, declined by 11%, indicating a significant reduction in actual productive investment activity, according to the UN Conference on Trade and Development (UNCTAD). Geopolitical tensions and trade fragmentation contributed to lower investment last year as they created uncertainty, which UNCTAD secretary-general Rebeca Grynspan described as a 'poison' for investor confidence. 'We are even more worried about the picture in 2025…we already feel that investment is halted…tariffs are affecting growth,' Grynspan told Reuters, with short-term risk management being prioritised over long-term investment. UNCTAD said its outlook for international investment in 2025 was negative due to trade tensions. Early data for the first quarter of 2025 shows record low deal and project activity. When several European conduit economies – which act as intermediary hubs where investments temporarily pass through before reaching their final destinations – are included, the data showed that FDI increased by 4% to US$1.5 trillion. However, UNCTAD noted that this figure masks the reality that much of this investment is merely passing through these jurisdictions and was not productive. 'We see a very worrying tendency…Investment that has a real impact on jobs and infrastructure is going down,' she said. Developed economies suffered a sharp drop in investment, with a 58% decrease in Europe. North America, however, observed a 23% increase in FDI, led by the US, while countries in Southeast Asia reached the second-highest level of FDI on record with a 10% rise, representing US$225 billion. Though capital inflows in developing countries were broadly stable, UNCTAD observed that capital was not being injected into crucial job-creating sectors such as infrastructure, energy and technology.
The Sun
2 days ago
- The Sun
Canada will ‘adjust' counter tariffs on US metals if no deal in 30 days
OTTAWA: Canada will 'adjust' its 25 percent counter tariffs on US steel and aluminum in response to a doubling of US levies if a bilateral trade deal is not reached within 30 days, Prime Minister Mark Carney said Thursday. 'Canada will adjust its existing counter tariffs on US steel and aluminum products on the 21st of July, at the end of that 30-day period,' he said. Carney also announced a raft of measures to support the Canadian steel and aluminum sectors facing 50 percent US tariffs, including procurement rules that favor domestic suppliers and anti-dumping measures. Canada is the largest supplier of foreign steel and aluminum to the United States, and Carney earlier this month had denounced the doubling of US tariffs on Canadian imports of steel and aluminum, calling them 'unjustified' and 'illegal.' At the same time, Canada and the United States launched 'intensive discussions' to rewrite Canada-US trade relations. G7 leaders at the Group of Seven summit in Canada on Monday pushed US President Donald Trump to back away from his punishing trade war. After Carney and Trump met on the sidelines of the summit, the Canadian government indicated the two sides could reach a trade deal within the next 30 days. The talks are ongoing. A good outcome in those negotiations, Carney said Thursday, would be to 'stabilize the trading relationship with the United States' and 'ready access to US markets for Canadian companies' while 'not having our hands tied in terms of our dealings with the rest of the world.' Canada exported 5.95 million tonnes of steel and 3.15 million tonnes of aluminum to the United States last year, according to US government data.
