US-Japan Trade Deal Hinges on Fund That Remains a Puzzle
The lack of clarity about how the fund will work adds to questions about the viability of the agreement, which imposes 15% tariffs on Japanese cars and other goods. While the start date and other basic elements are still unknown, Treasury Secretary Scott Bessent warned this week that the US would monitor implementation and bump the rate up to 25% if Trump isn't satisfied.
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The Hill
15 minutes ago
- The Hill
Trump, EU's von der Leyen strike trade deal for 15 percent tariffs
President Trump and President of the European Commission Ursula von der Leyen announced a trade deal on Sunday, setting tariffs at 15 percent for European goods, including automobiles. The European Union will purchase $750 billion worth of energy from the U.S. as part of the deal, Trump announced, and agreed to invest in the U.S. $600 billion more than the current investments for other goods. The agreement is lower than the 30 percent tariff Trump had threatened to impose on the EU, which would have begun on Aug. 1, and avoids a trade war with the U.S.'s largest trading partner. Trump and von der Leyen both touted the enormity of the deal they had agreed to during a meeting at the president's golf course in Turnberry, Scotland. 'I think it's the biggest deal ever made,' Trump said. 'We have a trade deal between the two largest economies in the world. It's a big deal, it's a huge deal, it will bring stability, it will be predictability,' von der Leyen said. 'It's a good deal, it's a tough deal.' When asked about concessions the U.S. made to reach the deal, von der Leyen acknowledged that there was an unbalanced trade relationship previously between the EU and the U.S., resulting in a deficit for the U.S. 'We wanted to rebalance the trade relation and we wanted to do it in a way that trade goes on between the two of us across the Atlantic,' she said. Trump went into the meeting with von der Leyen saying he thought there was a 50-50 chance the two leaders could strike a deal on Sunday. 'You're known as a tough dealmaker and negotiator,' von der Leyen said before the meeting. 'And fair,' Trump responded. 'This is really the biggest trading partnership in the world so we should give it a shot,' Trump said. Trump similarly reached a deal with Japan on trade earlier this week, which would set a 15 percent tariff on Japanese goods. That is lower than the 25 percent tariff Trump had threatened to impose on Japan beginning Aug. 1. Also in that deal, Trump said that Japan would invest $550 billion in projects in the U.S. and would open its markets to U.S. automobiles, rice and other agricultural products. The president on Sunday doubled down on tariffs starting on Aug. 1, telling reporters, 'The August 1 is there for everyone. The deals all start on August 1.'
USA Today
15 minutes ago
- USA Today
Trump, European Union reach trade deal ahead of looming deadline
President Donald Trump announced July 27 the United States had reached a trade deal with the European Union, days ahead of a self-imposed Aug. 1 deadline. Trump met with the EU's president, Ursula von der Leyen, during his trip to Scotland over the weekend, where the pair discussed terms and came to an agreement. The deal includes a 15 percent tariff on most European exports to the United States, similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but a deescalation from the 30% Trump threatened to impose earlier in July. The agreement also includes significant EU purchases of U.S. energy and military equipment, though details were not immediately available. "We made it," Trump said. Trump, who is seeking to reorder the global economy and reduce decades-old U.S. trade deficits, has so far 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." This is a developing story that will be updated.
CNN
15 minutes ago
- CNN
Qatari plane that could be new Air Force One will be ‘unconditional' gift to the Pentagon, agreement says
Federal agencies US military The Middle East Donald Trump FacebookTweetLink Defense Secretary Pete Hegseth and his Qatari counterpart have signed an agreement outlining the terms of Qatar's 'unconditional donation' of a Boeing jet to the Pentagon, confirming that the US will pay nothing for the plane, according to a copy of the memorandum of understanding reviewed by CNN. The agreement, signed by Hegseth and Qatar's deputy prime minister and minister of state for defense affairs, Saoud bin Abdulrahman Al-Thani, on July 7, says the plane — which is expected to be used by President Donald Trump as Air Force One once it is upgraded — is a 'bona fide gift' to the Defense Department. 'This donation is made in good faith and in the spirit of cooperation and mutual support between the parties,' the document says. 'Nothing in this MoU is, or shall be interpreted or construed as, an offer, promise, or acceptance of any form of bribery, undue influence, or corrupt practice.' The memorandum, while signed by both parties, could still be tweaked ahead of a formal announcement, a source familiar with the matter said. The aircraft is parked in San Antonio awaiting upgrades, CNN has reported. CNN has reached out to the Office of the Secretary of Defense, the Air Force and the Qatari Embassy for comment. The MOU was first reported by The Washington Post. The transfer of the jet from Qatar to the Trump administration sparked a political firestorm in the spring as Democrats and several influential Republicans, including supporters of the president, said they opposed the potential deal on ethics grounds. It also caught Air Force officials off guard, CNN has reported. While the Air Force was exploring options for getting a replacement plane for Air Force One faster than Boeing could deliver the new jets it had been contracted to build, the Air Force was initially under the impression that any transaction with the Qataris would involve a sale of the plane — not a donation, defense officials said. But after news of the US-Qatar discussions became public, Trump repeatedly described the plane as a 'GIFT, FREE OF CHARGE.' The memorandum signed by Hegseth and Al-Thani emphasizes the transfer of the plane is 'unconditional' and that it is 'not connected or otherwise related to any governmental decision and, as such, is not made, offered, promised or accepted because of any past, present or future official act or decision and is not intended to obtain or retain any improper advantage or to influence any official decision.' But beyond the ethical and legal questions, retrofitting and installing the required security and communications equipment on a second-hand plane from another government, even a friendly one, is a monumental task. To fund the upgrades, the Air Force has sought to transfer hundreds of millions of dollars from the vastly overbudget Sentinel program to an unspecified classified project, according to sources familiar with a congressional notification about the transfer. Sentinel is a land-based intercontinental ballistic missile system that is being developed to replace the US' aging Minuteman III missiles. Officially, the price tag to retrofit the Qatari plane for use by the president is classified, the Air Force previously told CNN. Air Force Secretary Troy Meink told lawmakers last month that it will 'probably' cost less than $400 million. An addendum to the Defense Department-Qatar agreement reviewed by CNN says the Air Force 'is in the process of finalizing the transfer of registration and will immediately begin execution of the required modifications.'
