Latest news with #EU-US
Straits Times
7 days ago
- Business
- Straits Times
Not the time to mess with EU-US trade, EU's Costa says
Not the time to mess with EU-US trade, EU's Costa says KANANASKIS, Alberta, Reuters) -Europe and the United States should focus on how the bloc takes more responsibility for its defence rather than creating economic uncertainty through trade tensions, European Union President Antonio Costa said on Sunday. 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 United States 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." U.S. President Donald Trump backed away from his threat to impose 50% tariffs on imports from the European Union 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 U.S. allies, and raised pressure on the global economy. Speaking alongside Costa, von der Leyen said the trade talks with Washington were now focussing 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 United States about the burden sharing on defence." 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. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Time of India
13-06-2025
- Business
- Time of India
China, UK trade deals with Trump pile pressure on EU
Representative AI image After London comes Beijing: US President Donald Trump announced a breakthrough in talks with China to put an end to their rapidly escalating tariff war on Wednesday night, though the details of the agreement remain unclear, and key elements are still awaiting formal approval. "Our deal with China is done, subject to final approval with President Xi [Jinping] and me," Trump wrote on his social media platform, Truth Social. "Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)" One day later, the scope of the deal remains uncertain. Neither Trump nor US officials had clarified which tariffs might be lifted or what concessions were included, according to the Associated Press news agency. Negotiations appear to be ongoing. 'Liberation Day' wounds healing Two months ago, Trump announced a blanket baseline 10% tariffs on virtually all goods imported into the US, an event he dubbed "Liberation Day." Higher country-specific rates followed, with Chinese imports hit particularly hard. Beijing immediately retaliated, with sharp increases of its own, sending bilateral tariffs soaring — peaking at 145% in some cases — on a trade relationship worth $583 billion (approximately €503.5 billion) in recent negotiations have helped bring mutual tariffs down, tensions remain. As of mid-May, US tariffs on Chinese goods averaged 51%, while Chinese tariffs on US goods stood at 33%, according to the Peterson Institute for International Economics, a US think tank. The UK and the US struck a much-vaunted deal one month ago. However, tariffs on key goods remain in place, pending further implementation. Europe treads cautiously Compared to China, the EU has so far opted for a rather restrained approach, with high-level officials engaged in intensive talks. As of April, most EU exports to the US have faced 10% tariffs. Additional 25% duties on steel and aluminum, imposed in March, remain in effect. The bloc has so far avoided the higher rates slapped on EU was poised to hit back with significant countermeasures on everything from whiskey to motorcycles prepared a second package, though both have been paused as EU-US negotiations continue. Brussels is pushing for a "zero-for-zero" trade agreement, aiming to eliminate tariffs on industrial goods. So far, talks have stalled. One of Trump's key complaints is the persistent trade imbalance. In 2024, the US imported significantly more goods from the EU than it exported, with a trade deficit of $216 billion, according to official US figures. However, the EU frequently argues that the US sells far more services to the bloc than the other way round. One option the European Commission, which as the EU executive branch represents the 27 member states in negotiations, has proposed is pushing EU companies and countries to buy more natural gas from the US, a shift that is already well under way since it turned away from Russia following its full-scale invasion of Ukraine in 2022. EU's nuclear option If all else fails for the EU and Trump resorts to 50% tariffs or even higher rates, there has been some discussion of another more radical move from the EU. "Should Europe retaliate if Trump's tariffs hit on 9 July, and how? If yes, then there seems to be general agreement that, beyond tariffs on goods, US digital services are the most likely and vulnerable target," Tobias Gehrke of the European Council on Foreign Relations posted late last month on social media platform Bluesky. Gehrke pointed to the EU's Anti-Coercion Instrument, a legal framework which empowers the EU to target services and could limit US companies' access to public procurement contracts in Europe. It came into effect in 2023, but has never been used, Time is of the essence With talks ongoing, US Secretary of Commerce Howard Lutnick has indicated that the bloc is at the back of the line. "I'm optimistic that we can get there with Europe," Lutnick told US broadcaster CNBC on Wednesday. "But Europe will probably be at the very, very end." On Thursday, US outlet Bloomberg reported that EU officials expect talks to extend beyond the current July 9 deadline, citing unnamed sources close to the negotiators, the pressure to wrap up a deal is enormous. "We'll get this deal done in the best way possible," an EU official told DW on the condition of anonymity. "But it's very clear that not only in the EU institutions, but also around the member states, people just don't want to go through this anymore." "In the volatile world we're in, everyone wants to have reliable trading partners, and the US just isn't that right now," the source added. In the coming days, the G7 and NATO summits in Canada and the Netherlands respectively, might have presented an opportunity for Trump and European Commission President Ursula von der Leyen to meet. However, the European Commission said on Thursday that no bilateral meetings were currently planned. "That could still change," Commission spokesperson Miriam Garcia Ferrer told reporters at a briefing in Brussels.
Business Recorder
13-06-2025
- Business
- Business Recorder
European shares drop as trade optimism wanes
FRANKFURT: European equities logged their fourth consecutive decline on Thursday as trade optimism dimmed, while mounting geopolitical tensions prompted a pullback from risk assets. The pan-European STOXX 600 closed 0.3% lower, after touching its lowest levels in over a week during the session. This extended selloff marks its longest daily losing streak in over two months. The primary catalyst was the persistent lack of clarity surrounding global trade policy. US President Donald Trump on Wednesday announced a willingness to extend trade talk deadlines while indicating it might not be 'necessary' as 'offer letters' are imminent. While recent talks with China resulted in a deal, they failed to dismantle existing tariffs or resolve long-standing structural trade imbalances. Treasury Secretary Scott Bessent said the European Union had been slower in presenting robust proposals, but was now showing 'better faith'. However, markets were sceptical about an EU-US deal before Trump's July 8 deadline, when the tariff pause expires. Geopolitical worries fueled more market caution after Trump said some US personnel were being moved out of the Middle East amid rising tensions with Iran. 'If Israel were to strike Iran, the consequences ... would depend on the severity of Iran's retaliation,' said James Swanston, senior economist at Capital Economics. Surging oil prices provided a tailwind for the energy sector to become the session's standout performer. Utilities, often traded as a bond proxy, gained 0.8%, in tandem with Eurozone bond prices. Travel and leisure dropped the most among sectors. Boeing shares fell 8% after one of its jets operated by Air India crashed in India's Ahmedabad, claiming more than 200 lives. London's FTSE 100 gained 0.2%. Fresh data highlighted a sharp deceleration in Britain's economy in April, partly due to Trump's tariffs and subdued consumer spending. 'The Bank of England will almost certainly leave interest rates steady at its June meeting and will keep its options open for the subsequent meeting in August,' said Paul Dales, chief UK economist at Capital Economics.
Business Times
12-06-2025
- Business
- Business Times
Europe: Shares drop as trade optimism wanes, geopolitical tensions rise
EUROPEAN equities logged their fourth consecutive decline on Thursday as trade optimism dimmed, while mounting geopolitical tensions prompted a pullback from risk assets. The pan-European Stoxx 600 closed 0.33 per cent lower at 549.84, after touching its lowest levels in over a week during the session. This extended selloff marks its longest daily losing streak in over two months. The primary catalyst was the persistent lack of clarity surrounding global trade policy. US President Donald Trump on Wednesday announced a willingness to extend trade talk deadlines while indicating it might not be 'necessary' as 'offer letters' are imminent. While recent talks with China resulted in a deal, they failed to dismantle existing tariffs or resolve long-standing structural trade imbalances. Treasury Secretary Scott Bessent said the European Union had been slower in presenting robust proposals, but was now showing 'better faith'. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up However, markets were sceptical about an EU-US deal before Trump's July 8 deadline, when the tariff pause expires. Geopolitical worries fueled more market caution after Trump said some US personnel were being moved out of the Middle East amid rising tensions with Iran. 'If Israel were to strike Iran, the consequences ... would depend on the severity of Iran's retaliation,' said James Swanston, senior economist at Capital Economics. Surging oil prices provided a tailwind for the energy sector to become the session's standout performer. Utilities, often traded as a bond proxy, gained 0.8 per cent, in tandem with Eurozone bond prices. Travel and leisure dropped the most among sectors. Boeing shares fell 8 per cent after one of its jets operated by Air India crashed in India's Ahmedabad, claiming more than 200 lives. London's FTSE 100 gained 0.2 per cent. Fresh data highlighted a sharp deceleration in Britain's economy in April, partly due to Trump's tariffs and subdued consumer spending. 'The Bank of England will almost certainly leave interest rates steady at its June meeting and will keep its options open for the subsequent meeting in August,' said Paul Dales, chief UK economist at Capital Economics. European Central Bank executive board member Isabel Schnabel said ECB interest rates are in a 'good place' despite an expected slowing of inflation. Traders see just one more 25 basis point cut by the end of 2025. Among stocks, BE Semiconductor Industries (BESI) rose 3.6 per cent after raising its long-term financial targets ahead of its investor day. Halma gained 3.3 per cent after the health and safety device maker's annual adjusted pretax profit beat expectations. REUTERS
DW
12-06-2025
- Business
- DW
China, UK trade deals with Trump pile pressure on EU – DW – 06/12/2025
Following Britain, China has struck a trade deal with the US, President Donald Trump has announced. Meanwhile, the EU is still pondering its way out of tariff hell, and US officials make clear it is back of the line. After London comes Beijing: US President Donald Trump announced a breakthrough in talks with China to put an end to their rapidly escalating tariff war on Wednesday night, though the details of the agreement remain unclear, and key elements are still awaiting formal approval. "Our deal with China is done, subject to final approval with President Xi [Jinping] and me," Trump wrote on his social media platform, Truth Social. "Full magnets, and any necessary rare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)" One day later, the scope of the deal remains uncertain. Neither Trump nor US officials had clarified which tariffs might be lifted or what concessions were included, according to the Associated Press news agency. Negotiations appear to be ongoing. 'Liberation Day' wounds healing Two months ago, Trump announced a blanket baseline 10% tariffs on virtually all goods imported into the US, an event he dubbed "Liberation Day." Higher country-specific rates followed, with Chinese imports hit particularly hard. Beijing immediately retaliated, with sharp increases of its own, sending bilateral tariffs soaring — peaking at 145% in some cases — on a trade relationship worth $583 billion (approximately €503.5 billion) in 2024. Trump's tariff spree is all part of a grand plan to put 'America First,' particularly in the production of goods Image:/AFP While recent negotiations have helped bring mutual tariffs down, tensions remain. As of mid-May, US tariffs on Chinese goods averaged 51%, while Chinese tariffs on US goods stood at 33%, according to the Peterson Institute for International Economics, a US think tank. The UK and the US struck a much-vaunted deal one month ago. However, tariffs on key goods remain in place, pending further implementation. Europe treads cautiously Compared to China, the EU has so far opted for a rather restrained approach, with high-level officials engaged in intensive talks. As of April, most EU exports to the US have faced 10% tariffs. Additional 25% duties on steel and aluminum, imposed in March, remain in effect. The bloc has so far avoided the higher rates slapped on China. British Prime Minister Keir Starmer was proud of his US deal. Will von der Leyen be able to get one over the line? Image: Carl Court/AFP The EU was poised to hit back with significant countermeasures on everything from whiskey to motorcycles prepared a second package, though both have been paused as EU-US negotiations continue. Brussels is pushing for a "zero-for-zero" trade agreement, aiming to eliminate tariffs on industrial goods. So far, talks have stalled. One of Trump's key complaints is the persistent trade imbalance. In 2024, the US imported significantly more goods from the EU than it exported, with a trade deficit of $216 billion, according to official US figures. However, the EU frequently argues that the US sells far more services to the bloc than the other way round. One option the European Commission, which as the EU executive branch represents the 27 member states in negotiations, has proposed is pushing EU companies and countries to buy more natural gas from the US, a shift that is already well under way since it turned away from Russia following its full-scale invasion of Ukraine in 2022. EU's nuclear option If all else fails for the EU and Trump resorts to 50% tariffs or even higher rates, there has been some discussion of another more radical move from the EU. "Should Europe retaliate if Trump's tariffs hit on 9 July, and how? If yes, then there seems to be general agreement that, beyond tariffs on goods, US digital services are the most likely and vulnerable target," Tobias Gehrke of the European Council on Foreign Relations posted late last month on social media platform Bluesky. Gehrke pointed to the EU's Anti-Coercion Instrument, a legal framework which empowers the EU to target services and could limit US companies' access to public procurement contracts in Europe. It came into effect in 2023, but has never been used, Time is of the essence With talks ongoing, US Secretary of Commerce Howard Lutnick has indicated that the bloc is at the back of the line. "I'm optimistic that we can get there with Europe," Lutnick told US broadcaster CNBC on Wednesday. "But Europe will probably be at the very, very end." On Thursday, US outlet Bloomberg reported that EU officials expect talks to extend beyond the current July 9 deadline, citing unnamed sources close to the negotiations. Italy's pecorino cheesemakers feel effects of Trump tariffs To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video For negotiators, the pressure to wrap up a deal is enormous. "We'll get this deal done in the best way possible," an EU official told DW on the condition of anonymity. "But it's very clear that not only in the EU institutions, but also around the member states, people just don't want to go through this anymore." "In the volatile world we're in, everyone wants to have reliable trading partners, and the US just isn't that right now," the source added. In the coming days, the G7 and NATO summits in Canada and the Netherlands respectively, might have presented an opportunity for Trump and European Commission President Ursula von der Leyen to meet. However, the European Commission said on Thursday that no bilateral meetings were currently planned. "That could still change," Commission spokesperson Miriam Garcia Ferrer told reporters at a briefing in Brussels.
