Latest news with #PodForceOne
Qatar Tribune
18 hours ago
- Business
- Qatar Tribune
EU increasingly resigned to 10% baseline reciprocal tariff in trade talks with US
Agencies Brussels European officials are increasingly resigned to a 10 percent rate on 'reciprocal' tariffs being the baseline in any trade deal between the United States and the European Union, five sources familiar with the negotiations said. President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the US goods trade deficit with the EU. US Commerce Secretary Howard Lutnick has ruled out going below a 10 percent baseline rate for the so-called reciprocal tariffs that cover most goods the EU exports to the US. EU neg are still pressing for the rate to be lower than 10 percent, said the European sources, who spoke on condition of anonymity because of the sensitivity of the talks. But one of the sources, an EU official, said negotiating the level down had become harder since the US started drawing revenues from its global tariffs. 'The 10 percent is a sticky issue. We are pressing them but now they are getting revenues,' said the official. A second European source said there had been no acceptance by the EU of 10 percent as the baseline rate at talks, but acknowledged that it would be difficult to change or abolish that baseline. A spokesperson for the European Commission, the EU's executive body which negotiates trade deals for the 27-nation bloc, did not respond to a Reuters request for comment. The US government also did not immediately comment. US officials have long worked on the assumption that America will end up with higher tariffs with its trading partners and do not expect to move away from the 10% tariff rate in talks with the EU. US Treasury Secretary Scott Bessent told the 'Pod Force One' podcast in an interview broadcast Wednesday that Trump's decision to double tariffs had spurred greater willingness on the part of European leaders to negotiate. The EU has said publicly it will not settle for a double-digit baseline rate - as did Britain, which agreed a limited trade deal in May that retains 10 percent tariffs on British exports while cutting higher rates for steel and cars. Notable orders included one for up to 150 planes for Vietnamese budget airline VietJet. Trump has hit Europe with a 50 percent tariff on steel and aluminium and a 25 percent levy on cars, and the EU is trying to secure a deal before July 9, when reciprocal tariffs on most other goods could rise from 10 percent to up to 50 percent. With an annual trade surplus of $236 billion with the US in 2024, the EU has more to lose from tariffs than non-EU member Britain, which runs a trade deficit with the US. Trump, who has said he wants to use tariff revenues to help finance his sweeping tax-cut and spending bill, said on Tuesday the EU was not offering a fair deal. Washington has sought to fold non-tariff barriers, such as digital services taxes and corporate sustainability reporting rules, as well as LNG sales and food standards into the talks. The US posted a $258-billion budget surplus for April, up 23 percent from a year earlier, and the Treasury Department said net customs duties in April more than doubled versus the same period last year. The sweeping tariffs imposed by Trump since early April and the subsequent pauses on some of them have generated upheaval for companies worldwide, causing some to withdraw or refrain from giving financial guidance. European automakers have been hit hard. Mercedes pulled its earnings guidance, Stellantis suspended its guidance and Volvo Cars withdrew its earnings forecasts for the next two years. One European car executive said premium carmakers could stomach a 10 percent tariff but that it would be much tougher for a mass-market producer. The tariffs targeting steel and aluminium, and cars and car parts, were applied on grounds of national security, with investigations into pharmaceuticals, semiconductors, timber and trucks possibly leading to further increased duties. EU officials say they are not willing to accept these. Trump said on Tuesday that pharma tariffs were 'coming very soon'. A pharma industry source said the European Commission was resisting sector-specific tariffs. The Commission has told the pharma industry that while it does not want the 10% baseline reciprocal tariffs, accepting a 10% base tariff may provide leverage in those negotiations, the source said. A European beverage industry source said the wine and spirits sector would rather have a deal at 10 percent than protracted negotiations. Not securing a deal would have a 'huge negative impact... on our market,' said Rob van Gils, CEO of Austrian company Hammerer Aluminium Industries. 'It can be 0 it can be 10 percent. If it's both ways that's all manageable. It will not kill business.'
Time of India
a day ago
- Business
- Time of India
EU increasingly resigned to 10% baseline tariff in US trade talks, European sources say
European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the United States and the European Union , five sources familiar with the negotiations said. President Donald Trump has announced wide-ranging tariffs on trade partners and wants to reduce the U.S. goods trade deficit with the EU. U.S. Commerce Secretary Howard Lutnick has ruled out going below a 10% baseline rate for the so-called reciprocal tariffs that cover most goods the EU exports to the U.S. EU negotiators are still pressing for the rate to be lower than 10%, said the European sources, who spoke on condition of anonymity because of the sensitivity of the talks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like CVS Is Fuming Over New 87¢ Generic Viagra — See Why Health Alliance by Friday Plans Learn More But one of the sources, an EU official, said negotiating the level down had become harder since the U.S. started drawing revenues from its global tariffs. "10% is a sticky issue. We are pressing them but now they are getting revenues," said the official. A second European source said there had been no acceptance by the EU of 10% as the baseline rate at talks, but acknowledged that it would be difficult to change or abolish that baseline. Live Events A spokesperson for the European Commission , the EU's executive body which negotiates trade deals for the 27-nation bloc, did not respond to a Reuters request for comment. The U.S. government also did not immediately comment. U.S. officials have indicated they do not expect to move away from the 10% tariff rate. U.S. Treasury Secretary Scott Bessent told the "Pod Force One" podcast in an interview broadcast Wednesday that Trump's decision to double tariffs had spurred greater willingness on the part of European leaders to negotiate. The EU has said publicly it will not settle for a double-digit baseline rate - as did Britain, which agreed a limited trade deal in May that retains 10% tariffs on British exports while cutting higher rates for steel and cars. Trump has hit Europe with a 50% tariff on steel and aluminium and a 25% levy on cars, and the EU is trying to secure a deal before July 9, when reciprocal tariffs on most other goods could rise from 10% to up to 50%. With an annual trade surplus of $236 billion with the U.S. in 2024, the EU has more to lose from tariffs than non-EU member Britain, which runs a trade deficit with the U.S. Trump, who has said he wants to use tariff revenues to help finance his sweeping tax-cut and spending bill, said on Tuesday the EU was not offering a fair deal. Washington has sought to fold non-tariff barriers, such as digital services taxes and corporate sustainability reporting rules, as well as LNG sales and food standards into the talks. The U.S. posted a $258-billion budget surplus for April, up 23% from a year earlier, and the Treasury Department said net customs duties in April more than doubled versus the same period last year. TARIFF IMPACT The sweeping tariffs imposed by Trump since early April and the subsequent pauses on some of them have generated upheaval for companies worldwide, causing some to withdraw or refrain from giving financial guidance. European automakers have been hit hard. Mercedes pulled its earnings guidance, Stellantis suspended its guidance and Volvo Cars withdrew its earnings forecasts for the next two years. One European car executive said premium carmakers could stomach a 10% tariff but that it would be much tougher for a mass-market producer. The tariffs targeting steel and aluminium, and cars and car parts, were applied on grounds of national security, with investigations into pharmaceuticals, semiconductors, timber and trucks possibly leading to further increased duties. EU officials say they are not willing to accept these. Trump said on Tuesday that pharma tariffs were "coming very soon". A pharma industry source said the European Commission was resisting sector-specific tariffs. The Commission has told the pharma industry that while it does not want the 10% baseline reciprocal tariffs, accepting a 10% base tariff may provide leverage in those negotiations, the source said. A European beverage industry source said the wine and spirits sector would rather have a deal at 10% than protracted negotiations. Not securing a deal would have a "huge negative impact... on our market," said Rob van Gils, CEO of Austrian company Hammerer Aluminium Industries. "It can be 0 it can be 10%. If it's both ways that's all manageable. It will not kill business." One EU official said a 10% baseline rate would "not massively erode competitive positions, especially if others receive the same treatment."
The Star
a day ago
- Business
- The Star
Fed's Powell says he expects to see more tariff-driven price hikes in coming months
WASHINGTON: Federal Reserve Chair Jerome Powell said on Wednesday goods price inflation will pick up over the course of the summer as President Donald Trump's tariffs work their way to U.S. consumers, who he argued would bear some of those costs. "Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer," Powell told a news conference after the Fed again held rates steady. "We know that because that's what businesses say. That's what the data say from the past." Trump administration officials, including U.S. Treasury Secretary Scott Bessent, have said that the steep tariffs, including 25% on imported steel and aluminum goods and over 50% on many Chinese goods, would not be passed on to the consumer, as some companies have opted not to raise prices and foreign producers would eat the costs. The U.S. Treasury took in a record $23 billion in customs receipts in May because of Trump's new import taxes, nearly quadrupling the $6 billion collected in May 2024. The tariffs' impact on inflation will drive the pace and timing of any Fed decision to cut borrowing rates. Fed policymakers on Wednesday projected two quarter-point rate cuts this year but a slower pace of future easing as they estimated higher inflation flowing from the tariff agenda. Powell told reporters that increased inflationary impacts from tariffs would emerge in the coming months. "We've had goods inflation just moving up a bit," he said in a news conference after the Fed's policy meeting. "We do expect to see more of that over the course of the summer." Powell said it has taken time for goods tariffs to work through the distribution chain, noting many goods now being sold by retailers were imported months before tariffs were imposed. These will be replaced by newer imports that are subject to the duties. "So we're beginning to see some effects, and we do expect to see more of them over coming months," he said. "We do also see price increases in some of the relevant categories, like personal computers and audio-visual equipment and things like that, attributable to tariff increases." Bessent told the "Pod Force One" podcast in an interview released on Wednesday that recent consumer and producer price data had shown a 0.1 percentage point increase last month, and the cumulative data showed the best rates since 2020. "All these predictions have just been baseless," he said, also pointing to a rise in wages for hourly workers. Powell did note that some of the uncertainty associated with tariffs has come down as Trump has backed away from the far higher tariff rates that he announced in April, including 145% on Chinese goods. "I think we learned in April, after the March meeting, that substantially higher tariffs were likely. And since then, the estimates of ... the tariffs ... have actually moved back down, although still at an elevated level," Powell said. "So we're adapting in real time." Bessent told the podcast that U.S. officials would probably meet with their Chinese counterparts again in person in about three weeks after agreeing last week in London to ease bilateral tariffs and get a delicate trade truce back on track. He gave no further details about the meeting, but said China needed to rebalance its economy and focus more on domestic consumption than exporting. - Reuters
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Business Standard
a day ago
- Business
- Business Standard
'Someone has to pay': Fed chair warns on tariffs as inflation risks grow
The US's Federal Open Market Committee (FOMC) on Wednesday left its benchmark interest rate unchanged for the fourth time this year. Fed Chair Jerome Powell said 'uncertainty is unusually elevated', pointing to US President Donald Trump's fast-shifting tariff agenda with major trade partners. Holding steady, Powell added, keeps the central bank 'well positioned to respond in a timely way' as economic conditions evolve, from global conflicts to domestic policy shifts. Powell made clear that the next few months are likely to bring stronger goods-price inflation as levies work their way through supply chains. 'Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer,' he told reporters, noting that many retailers are only now replacing pre-tariff inventory. 'We do expect to see more of that over the course of the summer.' Pointing to early signs — higher price tags on personal computers and audio-visual gear — he summed it up: 'Someone has to pay for the tariffs." Treasury downplays consumer pain, hails revenue surge Trump administration officials insist the impact on shoppers will be mild. US Treasury Secretary Scott Bessent argued on the 'Pod Force One' podcast that recent price data show only a '0.1 percentage point' uptick and called dire forecasts 'baseless", citing wage gains for hourly workers. Customs receipts, however, tell another story: the Treasury collected a record $23 billion in May, nearly four times the haul a year earlier, as 25 per cent duties on steel and aluminium and higher rates on Chinese imports took hold, news agency Reuters reported. Even though the Fed kept interest rates unchanged, it still expects to cut rates twice later this year. However, future rate cuts might happen more slowly because rising prices from tariffs could increase inflation risks. The headline rate of inflation ticked up to 2.4 per cent in May from 2.3 per cent, above the Fed's 2 per cent goal but below earlier forecasts. For now, the labour market remains 'healthy and stable', Powell said, with job creation continuing even as quit rates and vacancies soften. There is 'nothing that's troubling at this time,' he added, predicting that artificial intelligence 'should be creating jobs at the same time it may be replacing' others. Political heat Trump has repeatedly urged the Fed to move faster. ''Too Late' Jerome Powell is a FOOL, who doesn't have a clue. Other than that, I like him very much!' the US President posted on May 8, arguing that inflation is virtually nonexistent and 'tariff money [is] pouring into the US'. Powell has brushed off the criticism. After meeting Trump at the end of May, he reiterated that the FOMC 'will make those decisions based solely on careful, objective, and non-political analysis". Asked again on Wednesday about the jabs, he replied: 'That's what matters to us... That's all that matters". Next steps: Watching prices — and politics Powell acknowledged that some tariff worries have eased since April, when the White House floated even steeper duties — up to 145 per cent on Chinese goods — before dialing them back. Still, further talks with Beijing are expected 'in about three weeks', Bessent said, as both sides seek to revive a fragile trade truce. With summer approaching, the Fed chair warned that fresh, tariff-laden shipments are just hitting US shores: 'We're beginning to see some effects, and we do expect to see more of them over coming months.' How high prices climb — and how consumers react — will help determine whether the promised rate cuts arrive on schedule or slide into 2026.
Business Times
2 days ago
- Business
- Business Times
Fed's Powell says he expects to see more tariff-driven price hikes in coming months
[WASHINGTON] Federal Reserve Chair Jerome Powell said on Wednesday goods price inflation will pick up over the course of the summer as President Donald Trump's tariffs work their way to US consumers, who he argued would bear some of those costs. 'Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer,' Powell told a news conference after the Fed again held rates steady. 'We know that because that's what businesses say. That's what the data say from the past.' Trump administration officials, including US Treasury Secretary Scott Bessent, have said that the steep tariffs, including 25 per cent on imported steel and aluminum goods and over 50 per cent on many Chinese goods, would not be passed on to the consumer, as some companies have opted not to raise prices and foreign producers would eat the costs. The US Treasury took in a record US$23 billion in customs receipts in May because of Trump's new import taxes, nearly quadrupling the US$6 billion collected in May 2024. The tariffs' impact on inflation will drive the pace and timing of any Fed decision to cut borrowing rates. Fed policymakers on Wednesday projected two quarter-point rate cuts this year but a slower pace of future easing as they estimated higher inflation flowing from the tariff agenda. Powell told reporters that increased inflationary impacts from tariffs would emerge in the coming months. 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 'We've had goods inflation just moving up a bit,' he said in a news conference after the Fed's policy meeting. 'We do expect to see more of that over the course of the summer.' Powell said it has taken time for goods tariffs to work through the distribution chain, noting many goods now being sold by retailers were imported months before tariffs were imposed. These will be replaced by newer imports that are subject to the duties. 'So we're beginning to see some effects, and we do expect to see more of them over coming months,' he said. 'We do also see price increases in some of the relevant categories, like personal computers and audio-visual equipment and things like that, attributable to tariff increases.' Bessent told the Pod Force One podcast in an interview released on Wednesday that recent consumer and producer price data had shown a 0.1 percentage point increase last month, and the cumulative data showed the best rates since 2020. 'All these predictions have just been baseless,' he said, also pointing to a rise in wages for hourly workers. Powell did note that some of the uncertainty associated with tariffs has come down as Trump has backed away from the far higher tariff rates that he announced in April, including 145 per cent on Chinese goods. 'I think we learned in April, after the March meeting, that substantially higher tariffs were likely. And since then, the estimates of ... the tariffs ... have actually moved back down, although still at an elevated level,' Powell said. 'So we're adapting in real time.' Bessent told the podcast that US officials would probably meet with their Chinese counterparts again in person in about three weeks after agreeing last week in London to ease bilateral tariffs and get a delicate trade truce back on track. He gave no further details about the meeting, but said China needed to rebalance its economy and focus more on domestic consumption than exporting. REUTERS
