EU braces for US trade turbulence despite tariff deal
A senior EU official confirmed that executive orders to reduce tariffs on specific goods, including cars and car parts, are expected soon. 'We do expect further turbulence, but we have a clear insurance policy—the 15% tariff across the board. If the U.S. administration does not stick to that, we have the means to react,' the official said.
While the agreement covers most sectors, key industries like wine and spirits remain unresolved. Gabriel Picard, head of France's wine and spirits exporters federation, expressed cautious optimism. 'We are 48 hours away from a decision, and we have not lost hope that wines and spirits can be exempted,' he said.
The EU is also negotiating exemptions for essential products, aiming for a zero-tariff arrangement. However, discussions on steel and other sensitive sectors are taking longer due to volume-related complexities.
Despite the deal, business sentiment in the euro zone has dipped, reflecting concerns over unresolved trade issues. German engineering orders fell 5% in June, highlighting economic uncertainty. France and Germany have called for a stronger EU stance in future trade talks. - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
SEC ends lawsuit against Ripple, company to pay $125 million fine
FILE PHOTO: A representations of cryptocurrency Ripple is seen in front of a stock graph and U.S. dollar in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/Illustration/File Photo NEW YORK (Reuters) -The U.S. Securities and Exchange Commission said it ended its case accusing Ripple Labs of selling unregistered securities, leaving a $125 million fine intact and ending one of the cryptocurrency industry's highest-profile lawsuits. Ripple and the SEC agreed on Thursday to dismiss their appeals of the fine imposed by U.S. District Judge Analisa Torres in Manhattan and her injunction against the sale of Ripple's XRP token to institutional investors. XRP is the third-largest cryptocurrency by market value, trailing bitcoin and Ethereum, according to the market service CoinMarketCap. The SEC sued Ripple in December 2020, near the end of U.S. President Donald Trump's first White House term, accusing it of selling XRP tokens without registering them as securities. In a mixed ruling in July 2023, Torres said XRP was covered by securities laws when sold to institutional investors, while XRP that Ripple sold on public exchanges was not. She imposed the fine in August 2024. Following Trump's reelection, a more crypto-friendly SEC began retreating from some enforcement cases, and together with Ripple asked Torres to lift the injunction and reduce the fine to $50 million. She refused, saying neither side came close to showing "exceptional circumstances" that outweighed the public interest in enforcing the injunction and $125 million fine. The SEC said the dismissal of the appeals means the injunction and fine remain in effect. Stuart Alderoty, Ripple's chief legal officer, in a post on X referred to the SEC's actions and said the dismissals mark "the end" of the case. Since Trump reentered the White House, the SEC has also ended civil lawsuits against crypto exchanges Binance, Coinbase and Kraken. The case is SEC v Ripple Labs Inc, U.S. District Court, Southern District of New York, No. 20-10832. (Reporting by Jonathan Stempel in New York; Editing by Joe Bavier)
The Star
4 hours ago
- The Star
Zambia concerned by 'financial strain' of new US visa bond
Mulambo Haimbe, Zambian Foreign Minister, speaks during the 4th International Conference on Financing for Development, in Seville, Spain, July 1, 2025. REUTERS/Claudia Greco/File Photo LUSAKA (Reuters) -Zambia's government said on Friday it was concerned about the "unnecessary financial strain" that would be caused by a new rule requiring its citizens to pay bonds of up to $15,000 to obtain some types of U.S. visas. Starting August 20, President Donald Trump's administration will require visa applicants from Zambia and Malawi to post a bond of $5,000, $10,000, or $15,000 under a pilot programme for tourist and business visas, the State Department said on Tuesday. "While the (U.S.) government has a prerogative to initiate policy changes, the Zambian government views this development with serious concern, given its potential economic implications on trade, investment, tourism and people-to-people exchanges," Zambia's Foreign Minister Mulambo Haimbe said in a statement. "This includes the unnecessary financial strain on Zambian nationals." The move comes as Trump cracks down on illegal immigration, targeting countries with high overstay rates. The bond amount will be returned if the applicant leaves the U.S. within the allowed window of time and complies with all the terms of their visa status. Haimbe said his government would engage with U.S. counterparts to explore possible solutions. He added that it would not affect Zambians applying for student visas or those issued a valid visa before August 20. The Southern African country's average household income is roughly $150 per month, according to the government's latest statistical report. "For most Zambians... this bond is not just unaffordable, it's laughable," said Anthony Mukwita, a Zambian international relations analyst and former diplomat in a Facebook post. "It could drill a borehole and bring clean water to an entire village," Mukwita said. "Instead, it is being used to buy a chance at an American dream, a dream that's increasingly looking like a gated community with a very expensive entry fee." Neighbouring Malawi's government has not yet officially responded to the measure. ($1 = 23.1500 Zambian kwachas) (Reporting by Chris Mfula; Writing by Nellie Peyton;)
The Star
4 hours ago
- The Star
Pinterest slumps after flagging soft ad spend in major market U.S
A keyboard is placed in front of a displayed Pinterest logo in this illustration taken February 21, 2023. REUTERS/Dado Ruvic/Illustration (Reuters) -Pinterest shares plunged about 15% on Friday after the image-sharing platform warned of weaker ad spending in the U.S., its biggest market, due to the removal of the "de minimis" trade loophole. Tariffs-driven uncertainty and a suspension of the exemption that allowed packages valued at or under $800 to be shipped to the U.S. without facing import duties have forced some Asian e-commerce companies to scale back their U.S. marketing budgets. Those companies are now focusing on Europe and their home markets, where advertising rates are typically lower than those in North America, impacting ad revenues at Pinterest. The company, known for curating links to lifestyle products such as home decor, fashion accessories and beauty items, saw a 25% decline in advertising prices in the second quarter. With U.S. tariffs in place, the trend is expected to continue. "Management's comments on tariff concerns extending into the third quarter likely spooked the Street," Roth Capital Partners analysts said. A user growth slowdown, especially in North America, also added to investor worries. The company added 8 million users in the quarter to 578 million, lower than the 17 million in the first. It is much smaller than rivals such as Meta-owned Instagram. The stalled user growth is a "significant" concern, AJ Bell head of financial analysis Danni Hewson said. "As followers of the fortunes of MySpace, Bebo and Vine could tell you, it can be hard to regain relevance in the social media world once you have lost it." To boost engagement and attract more ad dollars, Pinterest has been doubling down on investments in shopping tools and personalization. But that is pushing up costs just as revenue growth is under pressure, hitting profits. The company's quarterly adjusted profit per share of 33 cents fell short of expectations of 35 cents on Thursday as total costs and expenses jumped 15%. (Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber)
