
US, EU Trade Talks Bolstered by Trump's Agreement with Japan
European negotiators were hoping to reach an agreement to dodge the 30% tariff rate Trump has said he would impose on imports from the 27-nation bloc on August 1.
The rate, which could also extend to cars, would mirror the framework agreement the U.S. has struck with Japan, which Trump announced late on Tuesday.
There could be concessions for sectors like aircraft and lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. Washington does not, however, appear willing to lower its current 50% tariff on steel, they said.
The White House did not immediately respond to a request for comment. Trump trade adviser Peter Navarro told Bloomberg News the report from the EU should be taken with 'a grain of salt.'
As talks continued, the European Commission said it would press on with potential counter-measures in case a deal was not reached.
EU member states were set to vote on 93 billion euros of counter-tariffs on U.S. goods on Thursday, European diplomats said. A broad majority of members support using anti-coercion instruments if there is no deal, they said.
Trump was aiming to secure an agreement on the heels of a complicated deal reached with Japan, the largest foreign investor in the U.S. That deal included a $550 investment and loan pledges from Japan and its commitment to buy 100 Boeing airplanes and boost purchases of U.S. agricultural products.
That investment – to be spent at Trump's discretion – would focus on key industries like energy, semiconductors, critical minerals, pharmaceuticals and shipbuilding, the White House said on Wednesday.
Tariffs on Japan's auto sector will drop from 27.5% to 15% as part of the agreement, reviving hopes for similar treatment for European cars.
Asian and European stock markets rallied as investors cheered the U.S.-Japan agreement, but U.S. stocks showed a more modest rise and earnings reports were gloomy.
American businesses making everything from chips to steel reported downbeat results on Wednesday, revealing how the Trump administration's chaotic trade policy has hurt profits, added to costs, upended supply chains and weighed on consumer confidence.
U.S. automakers signaled their unhappiness with the Japan deal, raising concerns about a trade regime that cuts tariffs on Japanese auto imports while leaving 25% tariffs on imports from their plants and suppliers in Canada and Mexico.
'Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,' said Matt Blunt, the president of the American Automotive Policy Council, which represents General Motors GM.N, Ford F.N and Chrysler parent Stellantis STLAM.MI.
CAR TARIFFS
Automobile stocks led the climb of European shares after the Japan deal spurred hopes that the U.S. was budging over tariffs on EU cars. EU officials have previously said Washington has shown little sign of doing so.
U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg Television that Japan received the 15% rate on auto tariffs 'because they were willing to provide this innovative financing mechanism' that he did not think other countries could replicate.
Trump, however, has appeared open to a range of options as the U.S. negotiates trade deals.
'I will only lower tariffs if a country agrees to open its market,' Trump wrote in a social media post on Wednesday.
The Republican president said late on Tuesday that other countries would be coming to Washington for talks this week. Governments were scrambling to close trade deals before next week's deadline that the White House has repeatedly pushed back under pressure from markets and intense lobbying by industry.
U.S. and Chinese officials plan to meet in Stockholm next week to discuss extending an August 12 deadline for negotiating a trade deal.
White House spokesperson Karoline Leavitt on Wednesday would not discuss expectations for the meeting, but said Bessent 'looks forward to continuing discussions with his Chinese counterparts.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Nikkei Asia
an hour ago
- Nikkei Asia
Can BRICS spearhead a new multipolar world order?
Leaders of the newly expanded BRICS group pose for a photo at the summit in Rio de Janeiro, Brazil, on July 7. © Reuters TORU TAKAHASHI TOKYO -- One of the most pressing strategic challenges facing Japan, and many other Asian countries, is how to navigate a world marked by growing uncertainty while safeguarding the principles of multilateralism. Unfortunately, this critical issue received little attention during Japan's recent upper house election. Yet the long-standing norm of multilateral cooperation -- a cornerstone of the existing international order -- is under strain. Two recent international summits underscored this "clear and present danger" and its far-reaching repercussions.


Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
Possible Trade Restrictions May Increase Eel Price in Japan; Availability of Summer Delicacy Could Decline
The European Union has proposed making all 19 eel species subject to trade regulations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). If the proposal is approved at an international conference scheduled to start in November, the supply of imported eels, which lately have been available at relatively affordable prices, could be affected. Affordable eels from Asia 'When I want to treat myself a little, eel is the way to go,' said a company employee, 35, from Koto Ward, Tokyo, as he munched on eel at major chain Naruse's Unagi Sengakuji Store in Tokyo's Minato Ward on July 18. The temperature in Tokyo that day exceeded 30 C, and the restaurant was packed with customers trying to beat the summer heat at lunchtime. Prices of eel bowls served at the store start at ¥1,600. The low price is achieved by importing grilled Japanese and American eel farmed elsewhere in Asia. Since opening in 2022, Naruse's Unagi has grown rapidly, expanding to about 400 stores. However, Masahiro Yamamoto, president of Franchise Business Incubation, Inc., the operator of Naruse's Unagi, said, 'We have endured rising rice prices and kept our prices steady, but this time we may have no choice but to pass on the costs.' Processed eel also targeted The cause of his headache is a proposal made last month by the EU to the CITES Secretariat. European eel — which is classified as critically endangered on the International Union for Conservation of Nature and Natural Resources (IUCN) Red List — has already been subject to trade restrictions, and the latest EU proposal calls for trade restrictions on the remaining 18 species, including Japanese eel, which is widely consumed in Japan. The main reasons cited for the proposal were the declining number of Japanese eels and illegal trade of European eels claimed to be other species with a similar appearance. If more than two-thirds of countries approve the proposal at an international conference starting in late November, countries that export the species will be required to issue permits for each export, including processed products such as kabayaki grilled eel, in principle. According to the Fisheries Agency, 60,941 tons of eel was distributed domestically last year. Of this, only 52 tons were from domestically produced wild eels, while 44,730 tons, or 70% of the total, were imported primarily from aquaculture operations. A senior official from the agency expressed concerns that, if the EU's proposal is adopted, 'Additional procedural burdens and rising costs could lead to price hikes or make exporters more cautious, potentially reducing domestic distribution volumes.' Tough negotiations On April 16, the EU sent a draft proposal, about 80 pages long, to the Japanese government. The proposal was aimed at gathering opinions from member countries for submission to the CITES Secretariat. Feeling a sense of crisis, the agency had its staff work during the Golden Week holidays to compile a rebuttal, arguing that 'Japanese eel resources are abundant, and the proposal lacks scientific basis,' and sent it to the EU. On June 19 and 20, Japan held talks with China, South Korea and Taiwan, which farm eels for export to Japan, and agreed to work together to persuade other member countries to reject the proposal. However, the outlook is not bright. Among the 184 member countries and regions, only a few have a culture of eating eel. Many of the negotiators representing their countries are environmental officials rather than fisheries officials, and proposals based on resource protection tend to be easily approved. 'We expect tough negotiations, but we have no choice but to do our best to persuade other countries in order to protect Japan's food culture,' an agency official said.


Yomiuri Shimbun
an hour ago
- Yomiuri Shimbun
Govt to Support Domestic Mass Production of Next-Generation Solar Cells; Aims for 1GW Annual Production Capacity by '30
The Economy, Trade and Industry Ministry plans to promote the domestic mass production of next-generation perovskite solar cells. Using a government fund, the ministry plans to select companies to support within this fiscal year with the aim of achieving an annual production capacity of about 1 gigawatt, which is sufficient to meet the energy needs of about 300,000 government aims to further popularize the adoption of solar power generation by also strengthening support for tandem solar panels, which utilize both silicon and perovskite cells. These panels are expected to be capable of achieving power generation efficiency of 1.5 times to 2 times greater than conventional solar panels. Tandem solar panels can also easily replace conventional solar panels as they can use the same mounts and wiring. Using the Green Innovation Fund, aimed at promoting decarbonization technologies, the ministry will provide financial support for the development and demonstration of mass production technologies. Companies eligible for support will be required to reduce power generation costs to 12 yen or less per kilowatt-hour, which is about 10% less than for conventional solar panels, and achieve a lifespan of about 20 years. As key players for domestic production, the ministry envisages such companies as Kaneka Corp. — a chemical manufacturer leading the development of tandem cells — and Choshu Industry Co. — which holds about a 20% share of the domestic market for solar cells for residential use. As domestic companies account for as much as about 70% of the residential solar cell market, the ministry considers this an area with potential for expansion. In the solar cell sector, Chinese manufacturers are leading the market, with multiple companies having already begun mass production of tandem cells, a stage no Japanese company has yet reached. Choshu Industry plans to set up a test line at its main factory by the end of this year, aiming to start mass production as soon as possible. In the development of perovskite solar cells, Sekisui Chemical Co. is leading the market with a thin and lightweight film type, while Panasonic Corp. is pioneering a glass type that can be used as a building material.