European markets drop after Trump's latest tariff warning
The US president's outburst came after a series of announcements last week including warnings of 50 percent levies on copper and Brazilian goods, 35 percent on Canadian goods, and a possible 200 percent charge on pharmaceuticals.
While observers warn the measures could deal a hefty blow to the global economy, investors are largely optimistic that governments will hammer out agreements before the White House's August 1 deadline.
In announcing his latest measures on Saturday, Trump cited Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the European Union.
The move threw months of painstaking talks with Brussels into disarray.
European Commission chief Ursula von der Leyen has insisted the bloc still wants to reach an accord -- and on Sunday delayed retaliation over separate US duties on steel and aluminium as a sign of goodwill.
Shares fell in Frankfurt and Paris, though London ticked higher.
In Asia, Hong Kong, Shanghai, Seoul, Singapore, Manila, Bangkok and Jakarta all rose, while Tokyo, Sydney, Taipei, Mumbai and Wellington edged down.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
eNCA
3 hours ago
- eNCA
UK to roll out red carpet for second Trump state visit
LONDON - Britain will welcome Donald Trump for an unprecedented second state visit in September, Buckingham Palace confirmed Monday, saying he would stay as the guest of King Charles III at Windsor Castle. The US president, "accompanied by the First Lady Mrs. Melania Trump, has accepted an invitation from His Majesty The King to pay a state visit to the United Kingdom from 17 September to 19 September 2025," said a palace statement. The visit will come only two months after Charles, and his wife Queen Camilla, welcomed French President Emmanuel Macron and his wife Brigitte to Windsor. Trump was invited by a personal letter from Charles, which Prime Minister Keir Starmer handed to him in February during a visit to Washington. Starmer has sought to woo Trump with a charm offensive to boost ties and gain better leverage for the UK in tough trade talks with Washington. A delighted Trump, who has long been a big fan of the British royal family, has called the invitation a "very great honour", and opened the letter from the king in the glare of the world's cameras. "This is really special, this has never happened before, this is unprecedented," Starmer said in the Oval Office as he handed Trump a hand-signed letter from the monarch. "This is truly historic." Britain rolled out the red carpet for Trump in 2019 when he met the late Queen Elizabeth II, King Charles's mother. No foreign leader has ever had a second state visit. The Times daily said the king had however sought to put off the new visit until later in Trump's second term, but "Starmer has gone against the wishes of the king" in bringing the visit forward. "The prime minister has expedited a full 'bells and whistles' visit in an attempt to capitalise on the president's fascination with the royal family," The Times said. Canada concerns Starmer will also meet with Trump this month when the Republican leader is expected to visit Scotland, where he has two golf resorts. The visit has not been publicly confirmed by the White House, but Downing Street said Monday that Trump would be "visiting in a private capacity" and "the prime minister is pleased to take up the president's invite to meet during his stay". Trump's threats against Canada have put Charles, who is the country's head of state, in a delicate position. Trump has threatened to slap a 35 percent tariff on imports from Canada starting August 1 and has regularly mused that Canada should become the 51st US state. Reading the letter aloud in the Oval Office in February, Trump said he had been invited to the historic Windsor Castle, near London, one of the royal family's ancient homes. After reading the letter, Trump said of Charles: "He's a beautiful man, a wonderful man -- I've gotten to know him very well, actually. First term and now second term." He added: "On behalf of our wonderful First Lady Melania and myself, the answer is yes and we look forward to being there and honouring the King and honouring really your country." Unlike Macron, who addressed the British parliament during his state visit last week, Trump is not currently scheduled to address the House of Commons which will be then on a break. During the French leader's visit last week, Britain laid on a pomp-filled welcome, including a horse-drawn procession and a lavish banquet in the castle where the leaders hailed a new era in UK-France relations.
TimesLIVE
4 hours ago
- TimesLIVE
Iran 'will respond' to reimposition of UN sanctions
Iran will react to any reimposition of UN sanctions over its nuclear programme, the country's foreign ministry spokesperson said on Monday, without elaborating on what actions Tehran might take. A French diplomatic source told Reuters last week that European powers would have to restore UN sanctions on Iran under the so-called "snapback mechanism" if there were no nuclear deal that guaranteed European security interests. The "snapback mechanism" is a process that would reimpose UN sanctions on Tehran under a 2015 nuclear deal that lifted the measures in return for restrictions on Iran's nuclear programme. "The threat to use the snapback mechanism lacks legal and political basis and will be met with an appropriate and proportionate response from the Islamic Republic of Iran," foreign ministry spokesperson Esmaeil Baghaei told a press conference, without giving further details. The 2015 deal with Britain, Germany, France, the US, Russia and China — known as the Joint Comprehensive Plan of Action (JCPOA) — states that if the parties cannot resolve accusations of "significant non-performance" by Iran, the "snapback mechanism" process can be triggered by the 15-member UN Security Council.
The Citizen
4 hours ago
- The Citizen
Government must intervene with US tariffs, act stronger with police corruption
There is no time for South Africa's government to drag its feet with responding to the US tariffs and corruption in the police. Government must urgently consider interventions to lower US tariffs as South Africa braces for the impact of them. In addition, people expected stronger action from President Cyril Ramaphosa to deal with the corruption in the police. Busisiwe Mavuso, CEO of Business Leadership South Africa (BLSA), says in her weekly newsletter that the notification from the White House that many of South Africa's exports will face 30% tariffs from August is 'deeply concerning'. 'While there may be scope to negotiate some reprieve, we must prepare for the worst-case scenario. Although exports from SA to the US make up just 2.2% of gross domestic product (GDP), some of that basket will be unaffected because there are specific exemptions, particularly for raw materials, such as platinum, gold, chrome and coal that the US deems critical. 'The most critical sectors to be affected are vehicles and parts, agricultural output, steel and aluminium (which faces 50%) and other manufactured goods. That will hit certain companies hard where they are significantly exposed to the US market.' ALSO READ: Ordinary South Africans will feel impact of US tariffs Businesses affected will find other markets, but it takes time She says some of those businesses will be able to find new markets for their output, but that takes time. In the short term, they will face a shock that will ripple through their supply chains. She said she worries about how the automotive sector will withstand this. She points out it is not just vehicle manufacturers, but the many parts manufacturers and other service providers who support them. 'Under the Trump tariff regime, vehicles and parts will get their own tariff of 25%. 'The US acquired R35 billion in luxury cars and components last year, with a third of that consisting of parts, many provided by relatively small businesses. 'The citrus industry is also bracing for a huge impact. South Africa has become the world's second-largest citrus exporter after Spain, but the biggest in the southern hemisphere, positioning it well for northern hemisphere winter demand.' ALSO READ: Trump's new 30% tariff less about trade and more about power The US market consumed around R1.8 billion of citrus exports, supporting about 140 000 jobs across the value chain. 'Add to that wine, beef and other exports and large parts of our agricultural sector will be hit. 'The critical question is whether affected companies can survive long enough to pivot to new markets. Shifting production capabilities and securing alternative import agreements takes years, not months. In the interim, hundreds of thousands of jobs hang in the balance.' Urgent decisions needed on US tariffs Mavuso says government must make urgent policy decisions. 'Much like during Covid, when companies were forced to close during lockdowns, the shocks are temporary. But losing companies and the thousands of jobs would be permanent. 'Then, government took the decision to support companies with loan schemes and support jobs with the Temporary Employer/Employee Relief Scheme (Ters). Similar interventions should urgently be considered to deal with the tariff fallout.' Of course, she says, government should also actively engage their US counterparts to find ways to avoid the full impact of the tariffs, but we must prepare for the worst. We cannot be left scrambling for a solution only after all other options have failed, she says. ALSO READ: Where Trump's tariffs will hurt most She points out that government's recent R753 million emergency funding for HIV programmes, necessitated by the US withdrawal of Pepfar, demonstrates a model for the challenge and response. 'While this represents only a tenth of Pepfar's previous spending, it shows government can move quickly when crises demand action. 'We must get ahead of this challenge. Government should immediately establish a tariff impact fund to support viable companies through the transition period while simultaneously working with affected industries to identify and develop alternative markets. Parallel diplomatic efforts with US counterparts remain important, but we cannot wait for their outcome.' Police corruption also needs urgent attention Turning to the governance crisis exemplified by the Senzo Mchunu affair, Mavuso says the crisis also demands urgent attention. 'The decision Ramaphosa announced last night to grant the police minister leave of absence is welcome, although proper suspension pending investigation would have been more appropriate given the serious allegations of lying to parliament and interfering in police investigations of political assassinations in KwaZulu-Natal. 'The president's appointment of Firoz Cachalia as acting minister does suggest an effort to put someone into the role without political baggage and is welcome. However, it would have been better to see stronger action. 'Just two weeks ago, the president dismissed a deputy minister for the relatively minor infraction of taking an overseas trip without final approval. If we fire officials for procedural violations, how can we treat potential obstruction of justice investigations with less severity?' Inquiry's recommendations must not gather dust again The commission of inquiry offers hope, provided it receives proper resources to support Acting Deputy Chief Justice Mbuyisile Madlanga, who has been appointed to head it, she says. 'The Nugent Commission on Sars and the PIC Commission successfully contributed to restoring those institutions, proving commissions can work when properly structured and supported. 'However, we cannot afford the delays and budget overruns that have plagued other inquiries, nor can we allow recommendations to gather dust like many from the Zondo Commission on state capture. Judge Madlanga will need to be swift and recommend immediate actions to suspend those who pose particular risk to the security services.' ALSO READ: Cameron questions urgency of commission into Mchunu probe Mavuso says this situation strikes at the heart of our criminal justice system. 'Police must have unwavering political backing to investigate crime without fear or favour. Any suggestion of political interference is devastating to public trust and emboldens criminal syndicates that have infiltrated our political systems. 'These networks must be dismantled and the president must lead this charge by ensuring police have his full backing to pursue investigations wherever they lead.'
