How India's oil arbitrage has hit the European sanctions wall
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First Post
17 minutes ago
- First Post
Did EU get a raw deal in Trump trade pact? 7 facts
While the agreement may have averted a full-blown trade war and restored some predictability, many analysts argue the EU signed away too much: steep tariffs, massive purchases and little leverage in return. Whether this fiscal toll brings long-term value or leaves Brussels as a weaker negotiator remains under scrutiny. read more The sweeping trade agreement unveiled Sunday between the United States and European Union, forged under intense pressure from President Donald Trump, has sent shockwaves through European capitals, with many questionings whether the deal leaves the EU at a stark disadvantage. Here are seven crucial facts illustrating the challenges and concessions embedded in the pact: US imposes across-the-board 15% tariff on EU exports The agreement sets a 15% baseline tariff on nearly all EU goods entering the US, a sharp escalation from the previous average US tariff of about 1.6% on a trade-weighted basis for EU products. Core EU exports, including cars, machinery and manufactured goods are now hit by the full 15% rate. While this prevented Trump's threatened 30% or even 50% duties, it remains a dramatic rise and the highest generalised tariff level imposed on the EU in decades. Major EU concessions on US energy A central element of the deal is the EU's agreement to purchase approximately $750 billion in US energy over the coming years, with a particular focus on liquefied natural gas (LNG) to replace Russian supplies. This marks one of the largest single-sector purchase commitments ever included in a transatlantic trade deal and reflects significant US leverage on Europe's energy security. $600 billion in new EU investments in the US Brussels has agreed to direct around $600 billion in additional investments to the United States in forthcoming years, covering green energy, manufacturing, and military equipment. For context, this matches the scale of the recently announced EU investment pledges for China, underlining the magnitude of this concession. Deal struck during Trump's private tour The agreement was finalised on Trump's private golf estate in Scotland outside EU soil while the UK, no longer a member of the EU, secured a different trade arrangement with the US seen as more favourable. The optics highlight a European desperation to avert more punitive tariffs especially as London was exempted from the harshest terms on steel and aluminium. EU pulls back on retaliation, misses broader show of strength In opting for a settlement, Brussels scrapped or dialled back threatened counter-tariffs, unlike China and Canada both of which have previously matched Trump's measures step for step. Some analysts and European commentators argue the EU missed a chance to assert broader strength instead settling under pressure to avoid economic escalation. Trump's core agenda intact: Steel and aluminium tariffs remain unchanged Despite EU negotiating efforts, the deal leaves in place Trump's 50% tariffs on European steel and aluminium, with only vague promises of a future quota-based relaxation. These metals remain an especially sore point among EU industry lobbyists and the longevity of these trade barriers highlights the limited EU leverage in core strategic sectors. Narrow exemptions: Some sectors spared but automobiles face full impact Certain sectors notably aircraft parts, select chemicals and some agri-products won zero-tariff exemption status. However, automobiles, representing a major chunk of EU exports to the US, fall under the full 15% tariff, a significant new cost for German, French and Italian carmakers already grappling with global market headwinds. While European leaders hailed the agreement as 'providing certainty' and averting a full-scale trade war, many in Europe see it as a lopsided settlement extracted at a moment of vulnerability. The tariff levels, energy purchase commitments, and investment pledges all signify a substantial shift in the transatlantic economic balance, one that, at least for now, appears to favour the US and President Trump's tough bargaining tactics. STORY CONTINUES BELOW THIS AD
Business Standard
19 minutes ago
- Business Standard
China's Shanghai Composite index edges up by 0.12%
Asian shares rose broadly on Monday, though Japanese markets fell sharply due to profit taking after last week's rally. Underlying sentiment remained supported somewhat as the EU and the U.S. struck a last-minute trade agreement and reports suggested the U.S. and China are likely to extend their tariff truce for another 90 days. The EU-U.S. agreement includes a 15 percent tariff on EU goods, down from the 30 percent originally proposed. The EU has committed to purchasing $750 billion worth of U.S. energy and investing $600 billion more into the American economy as part of the agreement. The dollar index held near a one-week high ahead of a busy week for markets, with key data releases, the Federal Reserve's interest-rate decision and earnings reports from major tech companies awaited. Magnificent Seven members Apple Inc., Inc., Microsoft Corp. and Meta Platforms Inc. are all due to report their numbers this week. Gold held steady near $3,340 per ounce in Asian trade while oil prices climbed on optimism that the U.S.-EU trade deal could boost economic activity and lift energy demand. China's Shanghai Composite index edged up by 0.12 percent to 3,597.94 ahead of U.S.-China talks in Stockholm to resolve trade tensions and extend the truce before it expires on August 12. Investors shrugged off data that showed China's industrial earnings fell for a second straight month in June.
Time of India
28 minutes ago
- Time of India
Lavrov Tears Into Europeans For Making Russia ‘World's Villain'; Calls US-EU Trade Deal Big Blow
Russian Foreign Minister Sergey Lavrov sounded an alarm that the deal between the U.S. and EU will inevitably lead to the collapse of European industry. At the Youth Forum 'Territory of Meanings,' Lavrov cautioned: 'American energy resources will be significantly more expensive than Russian ones… this will lead to further deindustrialization of Europe… and the outflow of investments.' He decried the pact as a 'heavy blow'—a strategic shift that may gut Europe's competitive edge while funnelling capital across the Atlantic. Watch. Read More
