EU to suspend U.S. tariff retaliation, will look for a deal with Trump by Aug. 1
The European Union will suspend retaliatory tariffs on U.S. goods scheduled to take effect Monday in hopes of reaching a trade deal with the Trump administration by the end of the month.
Article content
″This is now the time for negotiations,″ European Commission President Ursula von der Leyen told reporters in Brussels on Sunday, after President Donald Trump sent a letter announcing new tariffs of 30 per cent on goods from the EU and Mexico starting Aug. 1.
Article content
Article content
Article content
The EU — America's biggest trading partner and the world's largest trading bloc — had been scheduled to impose ″countermeasures″ starting Monday at midnight Brussels time (6 p.m. EDT; 22:00 GMT). The EU negotiates trade deals on behalf of its 27 member countries.
Article content
Von der Leyen said those countermeasures would be delayed until Aug. 1, and that Trump's letter shows ″that we have until the first of August″ to negotiate.
Article content
″We have always been clear that we prefer a negotiated solution,″ she said. If they can't reach a deal, she said that ″we will continue to prepare countermeasures so we are fully prepared.″
Article content
A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic.
We will continue working towards an agreement by August 1.
At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.
— Ursula von der Leyen (@vonderleyen) July 12, 2025
Article content
Article content
Europe's biggest exports to the U.S. are pharmaceuticals, cars, aircraft, chemicals, medical instruments and wine and spirits.
Article content
Italian Foreign Minister Antonio Tajani was heading to Washington for talks Monday with the U.S. administration and Congress. In a statement, Tajani's office said that in his talks with EU allies before the meetings, he stressed the need to 'negotiate with one's head held high.'
Article content
The right-wing government of Premier Giorgia Meloni, the only EU leader to attend Trump's inauguration, has sought to position itself as a ' bridge' between Brussels and Washington.
Article content
Trump has said his global tariffs would set the foundation for reviving a U.S. economy that he claims has been ripped off by other nations for decades. Trump, in his letter to the EU, said the U.S. trade deficit was a national security threat.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
6 minutes ago
- Globe and Mail
Taiwan Semiconductor May Profit from Chinese Manufacturing Issues
If there is one guarantee in today's stock market it's that volatility is sure to come back around, as President Trump still navigates through tariff negotiations with leading nations like China and Japan, there is a lot of gray space when it comes to how these deals will affect the technology sector, specifically in names exposed to the chipmaking and semiconductor industry. While these products and technology were not in the list of items to be tariffed in recent proposals, investors need to be aware that specific export routes to China have been tackled recently, lifting the amount (and type) of chipmaking technology that can get through to Asia's powerhouse. While this was previously seen as a negative, it actually presents a great opportunity for the leaders in the supply chain. A name that should immediately come to mind is Taiwan Semiconductor Manufacturing (NYSE: TSM), as it holds the majority of the supply chain's share; therefore, the stock is directly affected by pricing and inventory fluctuations in these demand bottlenecks. The reasons this stock could go higher will become clear to investors in just a minute. A Favorable Landscape for Taiwan Semiconductor Stock While some changes will occur regarding which technology can be introduced into Chinese markets, not all of the supply can be blocked off, especially as the United States and China attempt to build goodwill and move trade talks forward. That means that what little chipmaking equipment and raw materials can go into China will now become a commodity in high demand, and that is where Taiwan Semiconductor and its positioning in the industry come into play. As the main equipment manufacturer and provider, Taiwan Semiconductor is likely to hold a favorable pricing position. As demand grows and supply options remain limited, economic principles suggest that sellers such as Taiwan Semiconductor will now have greater pricing power. That dynamic will surely show up in the company's gross margins and bottom-line earnings in the coming quarters. In fact, during the initial release of the news for the technology sector, Taiwan Semiconductor delivered a rally of up to 11.6% over the past month, keeping it within 95% of its 52-week high levels. In terms of price action, investors can safely assume that the stock has considerable bullish optimism and momentum driving it. Other fundamental metrics are now building on top of this favorable price action, and they may lead investors to a new all-time high for Taiwan Semiconductor stock in this current economic environment. Demand Remains Hot for Taiwan Semiconductor's Products The neat thing about a company like Taiwan Semiconductor is that it reports its revenue numbers on a monthly basis, helping investors and Wall Street analysts keep their fingers on the pulse of this business at all times. Over the past quarter, these numbers have shown the market why there should be nothing but optimism in this company. Despite considerable uncertainty regarding tariff rates and ongoing negotiations, Taiwan Semiconductor experienced no change in demand, with the average annual revenue growth rate remaining at an impressive 45%. Even in May 2025, the month with the lowest growth rate, Taiwan Semiconductor reported an annualized 39.6% revenue increase. That should be enough to show investors how strong the company's positioning is within the industry, and also a reason to expect these bottlenecks to keep the financials pushing on during the coming months and quarters. As bullish as these revenue figures may seem, they're not the deal-maker in this current setup. What will drive the stock higher is where this revenue ultimately ends up. With a gross profit margin rate of up to 57.4% as of the latest quarter, investors can see where the value compounding will likely come from. As a large portion of each sale is retained within this highly efficient business, investors can safely expect decent growth in future earnings. As a matter of fact, Wall Street analysts now forecast up to $2.65 in earnings per share (EPS) in Taiwan Semiconductor for the fourth quarter of 2025, a net jump of 25% from today's reported $2.12 in EPS. As most investors already know, where EPS growth goes, so does the stock price. Considering that the Chinese bottlenecks due to embargoes are a relatively recent event, the increased buying power (and higher margins) have likely not yet been factored into these forecasts, increasing the chances that Taiwan Semiconductor will beat these Wall Street expectations. This might be why Charles Shi, an analyst from Needham & Co., reiterated his Buy rating on the company, this time also placing a $270 per share valuation on it. From the current trading price, this view calls for a new 52-week high and a net upside potential of 18%, with a high likelihood of being revised higher in light of these new economic developments. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Winnipeg Free Press
2 hours ago
- Winnipeg Free Press
Search ends for those missing after Yemen's Houthi rebels sink ship in Red Sea
DUBAI, United Arab Emirates (AP) — The search for those missing after Yemen's Houthi rebels sank a ship in the Red Sea has ended as at least four people are presumed dead and 11 others remain unaccounted for, the private security firms involved said Monday. The announcement came as satellite photos show long, trailing oil slicks from where the bulk carrier Eternity C sank, as well as another where the sinking of the bulk carrier Magic Seas by the Iranian-backed Houthis took place. Both ships were attacked over a week ago by the rebels as part of their campaign targeting vessels over the Israel-Hamas war in the Gaza Strip that's upended shipping in the Red Sea, through which $1 trillion of goods usually passes a year. Search called off as mariners missing The private security firms Ambrey and Diaplous Group ran the search for those missing from the Eternity C, which had a three-man security team aboard but requested no escort from either the U.S. Navy or a European Union force in the region. The ship came under attack July 7 and faced hours of Houthi assaults by small arms and bomb-carrying drones before ultimately sinking in the Red Sea. The initial attack on the Eternity C came a day after the attack on the Magic Seas. Both ships were Liberian-flagged, Greek-owned vessels. Ten people were recovered alive from the attack, including eight Filipino crew members and a Greek and Indian from the vessel's security team, the EU's Operation Aspides said. At least four are presumed to have been killed in the attack, leaving 11 others missing, the EU mission has said. The Houthis claimed to have taken some mariners after the attack, but have offered no evidence of that. The U.S. Embassy in Yemen said it believed the rebels had 'kidnapped' some of the crew. 'The decision to end the search has been taken by the vessel's Owner reluctantly but it believes that, in all the circumstances, the priority must now be to get the 10 souls safely recovered alive ashore and to provide them with the urgent medical support they need at this difficult time,' a statement by the security firms said. 'The thoughts of all those involved in the rescue operation are with the families of those who remain missing.' Oil slicks seen after two vessels sank The attacks on the vessels also raised concerns about damage to the environment in the Red Sea, home to corals and wildlife that draws divers, tourists and scientists. Satellite photos from Planet Labs PBC analyzed Monday by The Associated Press show large, spreading oil slicks in the southern Red Sea where the vessels sank. Wim Zwijnenburg, an analyst with the Dutch peace organization PAX, estimated the length of the slick from the Eternity C at some 80 kilometers (50 miles) and from the Magic Seas at some 65 kilometers (40 miles). He warned it could threatened wildlife reserves in nearby Eritrea in Africa and elsewhere. Currently on hiatus A review of funny, uplifting news in Winnipeg and around the globe. The oil comes from the ship's tanks and had been used for their own propulsion. Other shipping disasters have seen much of the slicks evaporate on their own, though they cause damage to the environment, too. Houthis have attacked shipping since 2023 From November 2023 to December 2024, the Houthis targeted more than 100 ships with missiles and drones. In their campaign so far, the Houthis have sank four vessels and killed at least eight mariners. The Houthis stopped their attacks during a brief ceasefire in the war. They later became the target of an intense weekslong campaign of airstrikes ordered by U.S. President Donald Trump before he declared a ceasefire had been reached with the rebels. The Houthis' new attacks come as a new possible ceasefire in the Israel-Hamas war remains in the balance. Meanwhile, the future of talks between the U.S. and Iran over Tehran's battered nuclear program is in question after Israel launched a 12-day war against the Islamic Republic that saw the Americans bomb three Iranian atomic sites.
CBC
2 hours ago
- CBC
Trump's latest tariff threat has European leaders plotting response
U.S. President Donald Trump's latest tariff threat of 30 per cent on goods from the EU and Mexico as of Aug. 1 has European leaders plotting their response while also pledging to negotiate a deal before the deadline.
