US and EU close in on 15% tariff deal, FT reports
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Business Times
3 hours ago
- Business Times
Trump, EU's von der Leyen to meet to clinch trade deal
[GLASGOW] European Commission President Ursula von der Leyen is set to meet US President Donald Trump on Sunday (Jul 27) to clinch a trade deal for Europe that would likely see a 15 per cent baseline tariff on most EU goods, but end months of uncertainty for EU companies. US and EU negotiators huddled in final talks on tariffs facing crucial sectors like cars, steel, aluminium and pharmaceuticals before the meeting, which is expected at 1530 GMT on Trump's golf course in Turnberry, western Scotland. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland on Saturday and EU Trade Commissioner Maros Sefcovic arrived on Sunday morning. Lutnick told 'Fox News Sunday' that the EU needed to open its markets for more US exports to convince Trump to reduce a threatened 30 per cent tariff rate that is due to kick in on Aug 1. 'The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30 per cent tariffs that he set,' Lutnick said, adding that the EU clearly wanted – and needed – to reach an agreement. A separate US administration official was upbeat that a deal was possible. 'We're cautiously optimistic that there will be a deal reached,' the official said, speaking on condition of anonymity. 'But it's not over till it's over.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials on Sunday to agree on the amount of leeway von der Leyen would have. In case there is no deal and the US imposes 30 per cent tariffs from Aug 1, the EU has prepared counter-tariffs on 93 billion euros (S$140 billion) of US goods. EU diplomats have said a deal would likely include a broad 15 per cent tariff on EU goods imported into the US, mirroring the US-Japan trade deal, along with a 50 per cent tariff on European steel and aluminium for which there could be export quotas. EU officials are hopeful that a 15 per cent baseline tariff would also apply to cars, replacing the current 27.5 per cent auto tariff. Possible exemptions Some expect the 27-nation bloc may be able to secure exemptions from the 15 per cent baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the US. Trump told reporters there was 'not a lot' of wiggle room on the 50 per cent tariffs that the US has on steel and aluminium imports, adding, 'because if I do it for one, I have to do it for all.' The US president, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that von der Leyen was a highly respected leader and he was looking forward to meeting with her. He said there was a 50-50 chance that the two sides could reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. The EU now faces US tariffs on more than 70 per cent of its exports, with 50 per cent on steel and aluminium, an extra 25 per cent on cars and car parts on top of the existing 2.5 per cent and a 10 per cent levy on most other EU goods. EU officials have said a 'no-deal' tariff rate of 30 per cent would wipe out whole chunks of transatlantic commerce. A 15 per cent tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15 per cent baseline tariff with the US in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting. For Trump, aiming to reorder the global economy and reduce decades-old US trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the US$550 billion deal with Japan. So far, he has reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of '90 deals in 90 days.' REUTERS
Straits Times
4 hours ago
- Straits Times
Ukrainian drones target St Petersburg as Putin attends scaled-down Navy Day
Find out what's new on ST website and app. Russian President Vladimir Putin is seen onboard a Raptor patrol boat on Russia's Navy Day in Saint Petersburg, Russia, July 27, 2025. Sputnik/Alexei Danichev/Pool via REUTERS MOSCOW - Ukrainian drones targeted St. Petersburg on Sunday, Russian authorities said, forcing the airport to close for five hours as Vladimir Putin marked Russia's Navy Day in the city, despite the earlier cancellation of its naval parade due to security concerns. St. Petersburg usually holds a large-scale, televised navy parade on Navy Day, which features a flotilla of warships and military vessels sailing down the Neva River and is attended by Putin. Last year, Russia suspected a Ukrainian plan to attack the city's parade, according to state television. Kremlin spokesman Dmitry Peskov confirmed on Sunday that this year's parade had been cancelled for security reasons, following first reports of its cancellation in early July. Putin arrived at the city's historic naval headquarters on Sunday by patrol speed boat, from where he followed drills involving more than 150 vessels and 15,000 military personnel in the Pacific and Arctic Oceans and Baltic and Caspian Seas. "Today we are marking this holiday in a working setting, we are inspecting the combat readiness of the fleet," Putin said in a video address. The Russian Defence Ministry said air defence units downed a total of 291 Ukrainian fixed-wing drones on Sunday, below a record 524 drones downed in attacks on May 7, ahead of Russia's Victory Day parade on May 9. Top stories Swipe. Select. Stay informed. Singapore Tanjong Katong Road sinkhole did not happen overnight: Experts Singapore Workers used nylon rope to rescue driver of car that fell into Tanjong Katong Road sinkhole Singapore Car that fell into Tanjong Katong Road South sinkhole removed; road remains closed for repairs Asia Singapore-only car washes will get business licences revoked, says Johor govt Sport Arsenal beat Newcastle in five-goal thriller to bring Singapore Festival of Football to a close Singapore Benchmark barrier: Six of her homeschooled kids had to retake the PSLE Singapore For Singapore to do well, PAP govt has to continue to hold its own: SM Lee Asia S'porean trainee doctor in Melbourne arrested for allegedly filming colleagues in toilets since 2021 Alexander Drozdenko, governor of the Leningrad region surrounding St. Petersburg, said that over ten drones were downed over the area, and falling debris injured a woman. At 0840 GMT on Sunday Drozdenko said that the attack was repelled. St. Petersburg's Pulkovo airport was closed during the attack, with 57 flights delayed and 22 diverted to other airports, according to a statement. Pulkovo resumed operations later on Sunday. Russian blogger Alexander Yunashev, part of an official group of reporters travelling with Peskov, said Peskov had told him their flight from Moscow to St. Petersburg had been delayed by the drone attack for 2 hours on Sunday. REUTERS
CNA
4 hours ago
- CNA
US commerce secretary says Trump really likes TikTok, but app has to move to US ownership
WASHINGTON :U.S. President Donald Trump likes TikTok but the Chinese-owned short video app, used by some 170 million Americans, has to move to U.S. ownership, Secretary of Commerce Howard Lutnick said on Sunday. "The President really likes TikTok, and he said it over and over again, because, you know, it was a good way to communicate with young people," Lutnick said in an interview on Fox News Sunday with Shannon Bream. "But let's face it, you can't have the Chinese have an app on 100 million American phones, that is just not okay. So, it's got to move to American ownership, it's got to move to American technology, American algorithms," he said. "I know the President is positive towards TikTok, if it can move into American hands."
