EU approves counter-tariffs on US goods, says trade deal within reach
The 27-nation bloc's executive has repeatedly said its primary focus is on reaching a deal to avert 30 per cent US tariffs that U.S. President Donald Trump has said he will apply on Aug 1.
"Our focus is on finding a negotiated outcome with the US ... We believe such an outcome is within reach," an EU spokesperson said in response to reporters' questions.
Alongside negotiations, the Commission has pressed on with plans for potential countermeasures, merging two packages of proposed tariffs of 21 billion euros and 72 billion euros into a single list and submitting this to EU members for approval.
The rate would be up to 30 per cent, designed to mirror US tariffs, EU sources said.
Diplomats said EU countries overwhelmingly approved the measures today, which the Commission later confirmed.
The first package of countermeasures would enter force on Aug 7, with tariffs on soybeans and almonds delayed until Dec 1, an EU official said. The second package would enter force in two stages on Sept 7 and Feb 7.
So far the EU has held back from imposing any countermeasures, despite Trump's tariffs already covering 70 per cent of EU exports. EU member states authorised the first package of countermeasures in April, but these were immediately suspended to allow time for negotiations.
CLOSING ON DEAL
The EU and United States now appear to be heading towards a possible trade deal, according to EU diplomats, which would result in a broad 15 per cent tariff on EU goods imported into the US, mirroring a framework agreement Washington struck with Japan. Trump would still need to take any final decision.
The White House said discussions of a deal should be considered "speculation." Trump trade adviser Peter Navarro told Bloomberg News the report from the EU should be taken with "a grain of salt."
French Finance Minister Eric Lombard and Italian Industry Minister Adolfo Urso told a joint press conference in Paris they were not aware of a draft agreement, Urso adding he would only pass judgment when one was reached.
There was little information available about what the EU would offer the United States to secure a deal. One EU diplomat said the bloc was not looking at a pledge of investment in the United States, as Japan has agreed.
Another said the EU might reduce some of its own duties. Its current import duty for cars is 10 per cent.
Under the outlines of the potential deal, the 15 per cent rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5 per cent.
There could also be exemptions for sectors such as aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, diplomats said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
3 hours ago
- The Star
EU chief to meet Trump for trade talks
BRUSSELS, July 25 (Xinhua) -- European Commission President Ursula von der Leyen said on Friday that she will meet U.S. President Donald Trump on Sunday to discuss transatlantic trade. Von der Leyen said in a post on social media platform X that the two leaders had a "good call" and agreed to meet in Scotland to "discuss transatlantic trade relations, and how we can keep them strong." Trump told reporters before departing for Scotland that "I would say that we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU." The president is on a five-day visit, during which he is expected to visit two of his golf resorts and meet British Prime Minister Keir Starmer. Earlier this month, Trump threatened to impose 30 percent tariffs on European Union (EU) goods starting Aug. 1, prompting Brussels to accelerate trade talks. Should talks fail, EU member states have backed a retaliatory tariff package on around 93 billion euros (109 billion U.S. dollars) worth of U.S. imports, due to kick in on Aug. 7. (1 euro = 1.17 dollar)
The Star
3 hours ago
- The Star
Exclusive-US diplomats asked if non-whites qualify for Trump refugee program for South Africans
WASHINGTON (Reuters) -In early July, the top official at the U.S. embassy in South Africa reached out to Washington asking for clarification on a contentious U.S. policy: could non-whites apply for a refugee program geared toward white South Africans if they met other requirements? President Donald Trump's February executive order establishing the program specified that it was for "Afrikaners in South Africa who are victims of unjust racial discrimination," referring to an ethnic group descended mostly from Dutch settlers. In a diplomatic cable sent July 8, embassy Charge d'Affairs David Greene asked whether the embassy could process claims from other minority groups claiming race-based discrimination such as "coloured" South Africans who speak Afrikaans. In South Africa the term colouredrefers to mixed-raced people, a classification created by the apartheid regime still in use today. The answer came back days later in an email from Spencer Chretien, the highest-ranking official in the State Department's refugee and migration bureau, saying the program is intended for white people. Reuters was unable to independently verify the precise language in the email which was described to the news agency by three sources familiar with its contents. The State Department, responding to a request for comment on July 18, did not specifically comment on the email or the cable but described the scope of the policy as wider than the guidance in Chretien's email. The department said U.S. policy is to consider both Afrikaners and other racial minorities for resettlement, echoing guidance posted on its website in May saying that applicants "must be of Afrikaner ethnicity or be a member of a racial minority in South Africa." Chretien declined to comment through a State Department spokesperson. Greene did not respond to Reuters requests for comment. The internal back-and-forth between the embassy and the State Department - which hasn't been previously reported - illustrates the confusion in how to implement a policy designed to help white Afrikaners in a racially diverse country that includes mixed-race people who speak Afrikaans, as well as whites who speak English. So far the State Department has resettled 88 South Africans under the program, including the initial group of 59 who arrived in May. Another 15 are expected to arrive by the end of August, one of the sources said. Trump, a Republican who recaptured the White House pledging a wide-ranging immigration crackdown, placed an indefinite freeze on refugee admissions from around the world after taking office, saying the U.S. would only admit refugees who "can fully and appropriately assimilate." Weeks later, he issued an executive order that called for the U.S. to resettle Afrikaners, describing them as victims of "violence against racially disfavored landowners," allegations that echoed far-right claims but which have been contested by South Africa's government. Since the executive order, U.S. diplomats working to implement the program have been deliberating internally about which racial groups could be considered eligible, one of the sources said. In the July 8 cable, Greene laid out a summary of the different ethnic and racial groups in the country before seeking guidance on eligibility. In addition to Afrikaners and mixed-raceSouth Africans, Greene mentioned indigenous South Africans known as the Khoisan people. He said that members of the Jewish community had also expressed interest, but that in South Africa they are considered a religious minority and not a racial group. "In the absence of other guidance, [the U.S. embassy] intends to give consideration to well-founded claims of persecution based on race for other racial minorities," Greene wrote. At least one family identified as colouredhas already traveled to the U.S. as refugees, two people familiar with the matter said. The cable forced the administration to clarify its position on whether the policy is for whites only, and if it does include other aggrieved minorities, who would qualify, two of the people familiar with the matter said. Chretien, a conservative who wrote op-eds promoting the Heritage Foundation's "Project 2025" plan to overhaul the federal government, is the senior official at the State Department's Bureau of Population, Refugees, and Migration. During the apartheid era, which ended with the first democratic elections in 1994, South Africa maintained a racially segregated society with separate schools, neighborhoods and public facilities for people classified as Black, coloured, white or Asian. Blacks make up 81% of South Africa's population, according to 2022 census data. Coloured South Africans make up 8%, and Indians 3%. Afrikaners and other white South Africans constitute 7% of the population but own three-quarters of the privately held land in the country. When asked about the program in May, Trump said he was not giving Afrikaners preferential treatment because they are white. "They happen to be white, but whether they are white or Black makes no difference to me," he said. In response to a request for comment, a White House official said the administration's policy reflected Trump's executive order. 'We will prioritize refugee admissions for South African citizens, including Afrikaners and other racial minorities in South Africa, who have been targeted by the discriminatory laws of the South African government," the official said. The assertion that minority white South Africans face discrimination from the Black majority has spread in far-right circles for years andbeen echoed by white South African-born Elon Musk, a U.S. citizen who served as a top White House aide during the first four months of Trump's administration. The South African government has rejected the allegations of persecution and a "white genocide." There is no evidence to back up claims of widespread, race-based attacks in the country. During acombative Oval Office meetingwith South African President Cyril Ramaphosa in May, Trump showed a printed image of a Reuters video taken in the Democratic Republic of Congo as part of what he falsely presented as evidence of mass killings of white South Africans. The South African Chamber of Commerce said earlier this year that 67,000 people were interested in the program. (Reporting by Ted Hesson and Humeyra Pamuk in Washington and Kristina Cooke in San Francisco; Additional reporting by Jonathan Landay in Washington; Editing by Don Durfee and Michael Learmonth)
BusinessToday
4 hours ago
- BusinessToday
Elevated Volatility Anticipated For USD, MYR Pair
The Malaysian ringgit has displayed unexpected strength this week, hovering around the 4.22-4.23 mark against the US dollar as the Dollar Index (DXY) slipped below 98.0. This performance comes amidst shifting global currency dynamics and anticipation surrounding crucial trade negotiations. The US dollar faced downward pressure early in the week without a clear immediate catalyst. However, a stronger Euro, bolstered by defensive reallocations ahead of the August 1 deadline for potential US-EU tariffs, appears to have driven the greenback's weakness. Markets seem to be favoring the Euro in light of these trade uncertainties. Concurrently, the Japanese Yen also gained ground following a newly inked US-Japan trade agreement, further contributing to the US dollar's softening. These movements provided a tailwind for risk assets, prompting a rotation of investments from the US into emerging markets. From a data perspective, the US labour market remains firm, contrasting with emerging signs of weakness in housing data. Ahead of the Federal Reserve's upcoming policy decision – where a no-change in interest rates is widely expected – market attention will be fixed on key economic reports. These include the JOLTS (Job Openings and Labor Turnover Survey) report, ADP private sector jobs data, and the advance Q2 2025 GDP reading. A string of positive surprises from these indicators could reignite hawkish Federal Reserve expectations, potentially strengthening the US dollar. The outcome of the US-EU tariff deal, along with other pending negotiations, will also be closely watched in the run-up to Friday's deadline. Outlook for the Ringgit Kenanga Research indicates that softer US data will be necessary to support their call for a September Fed rate cut. For now, the consensus points towards a resilient US economy. A favorable US-EU trade deal is expected to further support the Euro and overall risk sentiment globally. For the Malaysian ringgit, a significant near-term risk remains the ongoing trade talks with the US. As Minister of Investment, Trade, and Industry Tengku Zafrul Abdul Aziz recently confirmed, negotiations are intensifying to reduce an impending 25% US import tariff to below 20% before the August 1 deadline. A 'no-deal' outcome from these discussions could exert considerable downward pressure on the ringgit. Given the data-heavy week and the politically sensitive trade negotiations, currency analysts expect elevated volatility for the USD/MYR pair, anticipating it to trade within the 4.20–4.25 range. Technically, the USD/MYR is currently anchored near its 5-day Exponential Moving Average (EMA) at 4.23, with immediate support at 4.22 and resistance at 4.23. Related
