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 US 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 and €72 billion 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 on Thursday, 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 Sep 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
CNA
42 minutes ago
- CNA
Markets Dive After Trump Slaps New Tariffs on Dozens of Countries
LONDON: Stock markets slid Friday (Aug 1) after US President Donald Trump announced tariffs on dozens of trading partners and weak US jobs data fuelled the fall. Wall Street's Dow Jones index dropped more than 1.2 per cent as trading got underway in New York, while Paris and Frankfurt tumbled more than two per cent. The dollar gave up earlier gains against key currencies. With hours to go before Trump's Aug 1 deadline for governments to make toll-averting deals, the president unveiled a list of sweeping levies. The new tariffs range from 10 to 41 per cent and target exports from 69 countries, including Canada, India, Switzerland, Brazil and Taiwan. Trump's administration said the measures, effective Aug 7, would raise the US effective tariff rate to about 18 per cent, up from just 2.3 per cent last year. Hours later, the US Labor Department said the US economy added just 73,000 jobs in July while revising lower the figures for May and June. "The US payrolls data has eclipsed news about the latest tariff rates applied to the world's economies by Donald Trump, and is now dominating markets," said Kathleen Brooks, research director at XTB trading group. Earlier, she noted, tariffs were "the main theme sucking risk sentiment from financial markets". Governments around the world have been scrambling to cut deals with the White House since Trump unveiled his bombshell "Liberation Day" tariffs on Apr 2. He has delayed implementation of the tariffs several times - the latest move pushing them back by a week to Aug 7. MARKETS SLIDE WORLDWIDE US stocks were deep in the red Friday afternoon, with the Dow Jones Industrial Average down 1.46 per cent to 43,486.45, the S&P 500 losing 1.8 per cent to 6,225.55, and the Nasdaq falling 2.42 per cent to 20,610.91. Global equities followed suit, with Europe's STOXX 600 tumbling 1.89 per cent. SWITZERLAND, CANADA TARIFF HIT Some trading partners have reached deals with the United States - including Britain, the European Union, Japan and South Korea. China remains in talks with Washington to extend a fragile truce in place since May. For those in the crosshairs of the latest outburst, tariff rates range from 10 per cent to 41 per cent. Trump unveiled new levies Thursday on about 70 economies - including a blistering 35 per cent rate on Canada - as he seeks to reshape global trade to benefit the US economy. The Swiss government on Friday said it would negotiate with the United States to try to avoid the 39 per cent tariff that could hit key industries. Switzerland's mechanical and electrical engineering sector said it was "stunned" by the tariffs and would push for a negotiated solution. Canadian Prime Minister Mark Carney criticised the US move, vowing to protect Canadian jobs and diversify exports. Ottawa warned it may walk away from talks if no progress is made. India is also negotiating with Washington after being hit with a 25 per cent tariff that could affect US$40 billion worth of its exports, according to a government source. Other countries such as Brazil (50 per cent), Taiwan (20 per cent) and South Africa (30 per cent) were also affected. Southeast Asian economies, meanwhile, saw lower-than-expected rates of around 19 per cent, easing investor concerns. Shares in European pharmaceutical firms meanwhile slumped following the president's threat to punish them if they did not lower prices for medicines in the United States. Meanwhile, businesses like L'Oreal and other fashion and cosmetics firms are reportedly exploring use of the "First Sale" customs clause to soften the impact of the tariffs. Tariffs uncertainty overshadowed earnings from major tech titans this week that saw Apple on Thursday post double-digit quarterly revenue growth that beat expectations. Amazon said quarterly profits jumped 35 per cent as key major investments in AI technology paid off, though its outlook for the next three months disappointed.
CNA
an hour ago
- CNA
Trump moves nuclear submarines after statements by former Russian president
WASHINGTON: US President Donald Trump said on Friday (Aug 1) he had ordered two nuclear submarines to be repositioned to the "appropriate regions" in response to recent threats from former Russian President Dmitry Medvedev. 'I have ordered two nuclear submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that,' Trump posted on social media. He described Medvedev's recent remarks as 'highly provocative' and warned that 'words are very important, and can often lead to unintended consequences. I hope this will not be one of those instances.' The move marks the latest escalation in rhetoric between the two leaders, who have traded barbs over Russia's ongoing war in Ukraine. On Tuesday, Trump gave Moscow a 10-day deadline to agree to a ceasefire or face new US tariffs on Russian oil and on countries that purchase it. Russia has not signaled any willingness to meet Trump's conditions and continues to advance its own demands for peace. Medvedev, currently deputy chairman of Russia's Security Council, responded by accusing Trump of playing a 'game of ultimatums' and reminded the US leader of Russia's legacy nuclear strike capabilities inherited from the Soviet Union. The Kremlin has not directly commented on Trump's latest move, but Medvedev's remarks were widely covered in Russian state media. Once seen as a more moderate figure, Medvedev has in recent years become one of Moscow's most vocal anti-Western hardliners, often issuing hawkish statements that Kremlin critics describe as reckless. However, some Western diplomats view Medvedev's rhetoric as a window into broader thinking within the Kremlin's senior policy circles.
International Business Times
an hour ago
- International Business Times
Appeals Court Questions Trump's Use of Emergency Powers to Justify Tariffs
A US federal appeals court raised serious doubts about President Donald Trump's authority to impose broad tariffs under emergency powers. During a hearing in Washington, D.C., judges questioned whether the International Emergency Economic Powers Act (IEEPA) grants the president the legal right to impose tariffs on allied nations like Canada, China, and Mexico. Trump had used IEEPA to introduce what he called "reciprocal" tariffs in April and further increased them in February. The case now before the U.S. Court of Appeals for the Federal Circuit was brought by five small businesses and 12 Democratic-led states. They argue that Trump overstepped his powers and that only Congress has the constitutional right to set tariffs and taxes. Government lawyer Brett Shumate defended Trump's move, saying IEEPA gives the president broad authority in economic emergencies, including regulating imports. But Judge Jimmie Reyna responded, "IEEPA doesn't even mention tariffs." Several judges appeared skeptical throughout the 90-minute hearing, which concluded without a ruling date. The outcome of this case could have major implications. Trump, who made tariffs a key trade tool during his second term, claims they helped address unfair trade practices and boosted U.S. manufacturing. He cited the U.S. trade deficit and illegal fentanyl imports as justification. However, critics argue these reasons do not constitute an "extraordinary threat" under the law. Earlier this year, a lower court also ruled that IEEPA does not support tariffs based on long-term trade imbalances. The appeals court has allowed the tariffs to stay in place while legal challenges continue. With customs duties now generating over $100 billion in revenue this fiscal year, tariffs have become a significant funding source. Still, economists warn that they raise consumer prices and disrupt supply chains. The Trump administration argues that removing tariff power could harm trade negotiations, although recent deals with the EU, Japan, and others have moved forward. Trump has warned of further tariff hikes on countries not reaching new trade deals by August 1. The final decision in this case is likely to head to the U.S. Supreme Court if either side loses.
