Trump tariffs live: EU delays retaliatory trade tariffs, seeks deal after 30% US rate

Reuters

14-07-2025

8 minutes ago
07:54 EDT
European markets have given something of a gallic shrug to Trump's tariff threat against the region over the weekend, with investor concern instead appearing to build about the intensifying White House attack on Federal Reserve chair Jerome Powell.
As with the sweep of other August 1 tariff plans that Trump detailed in letters sent last week, investors suspect much may change between now and then and are reluctant to take the standing numbers at face value just yet.
What's more, there's still no real consensus on whether the U.S. trade war damages the American economy more or less than any of the countries it's targetting.
And in currency markets, the dollar has been the one unequivocal loser from the whole policy piece this year so far.
Read the full commentary here.
Opinions expressed are those of the author.
A timeline of Trump's tariffs
15 minutes ago
07:46 EDT
Paolo Laudani and Mateusz Rabiega
Struggling to keep track of all the tariff changes since Trump took office on January 20? Here are some of the key moments so far:
February:
Trump imposes 25% tariffs on Mexican and most Canadian imports and 10% on goods from China
Trump suspends his threat of tariffs on Mexico and Canada, but not China
March:
Trump says 25% tariffs on goods from Mexico and Canada will take effect from March 4
Trump exempts goods from Canada and Mexico under a North American trade pact for a month from the 25% tariffs
April:
He announces global tariffs with a baseline of 10% across all imports and higher duties on some of the U.S.' biggest trading partners
Trump pauses for 90 days most of his country-specific tariffs following an upheaval in financial markets that erased trillions of dollars.
Trump says he will raise the tariff on Chinese imports to 125% from the 104% level that took effect a day earlier
The U.S. grants exclusions on smartphones, computers an other electronics imported largely from China
May:
The U.S. and China agree to temporarily slash reciprocal tariffs
Under the 90-day truce, the U.S. to cut the extra tariffs it imposed on Chinese imports to 30% from 145%, while China's duties on U.S. imports would be slashed to 10% from 125%
June:
Trump signs an executive proclamation activating a hike in the tariffs on imported steel and aluminum to 50% from 25%.
July:
In letters sent to 14 countries including Japan and South Korea, Trump says he will introduce tariffs between 25% and 40% from August 1
Trump says the U.S. will impose a 35% tariff on imports from Canada next month
Trump threatens to impose a 30% tariff on imports from Mexico and the European Union starting on August 1
See the full tariff timeline here.
Production: Martin Schlicht, Gabi Sajonz, Michele Sani
Reuters spoke to commuters in Berlin on Monday morning, who were pessimistic about the new tariff threat.
The first speaker is Caren Gutschmidt.
'I don't think these tariffs are good. I think the EU should respond with counter-tariffs because we should not allow ourselves to be blackmailed by a U.S. government which is completely unreliable. You can't rely on statements or agreements. That's why we should take a strong stance. That's the only way this president will understand,' she said.
The second speaker, Markus Roemer, said:
'Let's hope for a deal. But even that is completely unpredictable. It could be that you make a deal and three days later he gets up and has a bad day and then the deal is off.'
The final speaker in the video is Sebastian, who only gave his first name.
'Everything is getting more expensive all the time. I don't think they (tariffs) will work. I wouldn't do it,' he said.
an hour ago
07:02 EDT
Ilona Wissenbach
German luxury carmaker Mercedes-Benz said on Monday that an agreement between the EU and the United States is crucial for the future economic success of both markets.
"It is therefore the responsibility of all parties involved to continue working intensively and as quickly as possible on a trade agreement," the company said.
"As a global company, we are committed to constructive cooperation and a political framework that promotes economic trade across international markets."
"It is now important that the EU and the U.S. remain in a constructive dialogue and reach a fair negotiated solution that is in the interests of both sides," it added.
Since April, EU carmakers have incurred a 25% U.S. import tariff on top of the 2.5% already in place.
The 30% tariff Trump announced over the weekend applies "separate from all sectoral tariffs", Trump wrote in his letter to Ursula von der Leyen.
Toby Gibb of Artemis Investment Management told Reuters investors have got a little complacent about the possible impact of tariffs.
Plus, high duties hitting European companies while trading volumes are low over the summer break could be a recipe for volatility.
Find out what's moving markets and why with Market Talk, Reuters' daily chat with an investor, economist or market analyst.
an hour ago
06:43 EDT
As of July 12, Trump has announced a fresh tariff rates for dozens of economies.
See how his July announcements compare to what had been announced in April or earlier:
U.S. stock index futures slipped on Monday, as Trump's fresh tariff threats targeting the European Union and Mexico dampened investor sentiment ahead of a week packed with economic data and second-quarter earnings.
At 5:30 a.m. ET (0930 GMT), Dow E-minis were down 130 points, or 0.29%, S&P 500 E-minis were down 17.75 points, or 0.28%, and Nasdaq 100 E-minis were down 65 points, or 0.28%.
The measured losses indicated investors are more accustomed to Trump's repeated tariff threats.
On Friday, the S&P 500 receded from an all-time high it hit the day before, and closed lower. It capped last week with minor losses.
In Canada, Futures linked to Canada's main stock index fell on Monday, with the latest threat of U.S. tariffs lowering investor risk appetite. Futures on the S&P/TSX index were down 0.1% by 06:05 a.m. ET
Framework deal possible with US by deadline, South Korea says
2 hours ago
06:28 EDT
Hyunjoo Jin
FILE PHOTO: Pyeongtaek port, South Korea, July 8, 2025. REUTERS/Kim Hong-Ji
It may be possible to strike an "in-principle" deal with the U.S. by the August 1 deadline, South Korea's top trade envoy, Minister for Trade Yeo Han-koo, said on Monday, according to local media reports.
He also signalled that Seoul may be open to allowing Washington greater access to its agriculture markets.
"I believe it's possible to reach an agreement in principle in the U.S. tariff negotiations, and then take some time to negotiate further," the Newsis news agency quoted Yeo as telling local media reporters.
Han-koo, who held high-level talks with U.S. officials last week, said South Korea was seeking to avoid "unfair" U.S. tariffs on key industrial sectors that would undermine industrial cooperation with its main security ally and trading partner, the media reports said.
"Twenty days are not enough to come up with a perfect treaty that contains every detail," he added.
South Korea is in a race to reach a compromise trade pact in the hope of avoiding a 25% tariff slapped on its exports, the same level faced by Japan.
'I cannot imagine walking away without any effort'
2 hours ago
05:45 EDT
Philip Blenkinsop
Earlier we brought you some comments from EU trade commissioner Maros Sefcovic as he arrived for a meeting of EU trade ministers in Brussels.
Here is a bit more of what he said:
"We continue to engage with the US administration and prioritize a negotiated solution by the new deadline of August 1. I cannot imagine walking away without any effort."
But the EU would have to prepare for all outcomes, he said, "including, if necessary, well considered, proportionate countermeasures to restore the balance."
A 30% tariff rate would make it almost impossible to continue trading as before, with enormous consequences for supply chains and negative impacts on both sides of the Atlantic, he said.
"And therefore I think we have to do, and I will definitely do, everything I can to prevent this super-negative scenario," he told reporters before the EU ministers meeting.
What about EU retaliatory tariffs?
2 hours ago
05:37 EDT
Julia Payne
While the EU has said it is preparing retaliatory tariffs in response to Trump's planned 30% levy on EU exports, it is focussed on reaching a deal for now.
On Sunday the EU said it would extend its suspension of countermeasures to U.S. tariffs until early August.
Ursula von der Leyen, head of the EU's executive Commission which handles trade policy for the 27 member states, said the bloc would maintain its two-track approach: keep talking and prepare retaliatory measures.
"We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now," von der Leyen told a press conference.
Von der Leyen's decision to resist immediate retaliatory measures points to the European Commission's desire to avoid a spiralling tit-for-tat escalation in the trade war while there remains a chance of negotiating an improved outcome.
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
3 hours ago
05:29 EDT
Klaus Lauer
Germany 's DIHK Chamber of Commerce said the escalating tariff conflict with the United States posed a 'serious threat' to many German companies.
"The EU trade ministers are called upon to act jointly and decisively to prevent further tariffs and secure supply chains. Only a united Europe can effectively defend its economic interests," the chamber's head of trade Volker Treier said.
"Instead of summer holidays, tough negotiations are now needed to avert a collapse of transatlantic trade."
"Europe must also do its homework in order to be an attractive trading partner, particularly with regard to tax policy and the reduction of bureaucracy," he added.
Italians on the streets of Rome on Monday were not happy with Trump's latest tariff move.
'A scandal. In a globalised world like the one we live in today, there can't be such a dominant figure. It is truly arrogant, overbearing, but unfortunately, he is the President of the United States and he wins," said the first person in the video, Stefania Bernardini.
The second speaker is Davide Iannace.
"I haven't thought about it that much, but it is the classic behaviour of a president who needs easy money for his very expensive domestic policies. More than anything else, this," he said.
The third man in the video chose not to be named.
"A rip-off. I think (Italian Prime Minister Giorgia) Meloni said she will handle it, that she has a friendship with Trump. Let's see what she manages to do. I don't really believe in it, but people believe in it. Let's hope for the best," he said.
The final speaker is Tiziano, who only gave his first name. He said:
'Yeah, not good. Not good for us or for them. For us. because there's definitely going to be economic fallout, and for them it is also a matter of vision, the vision of the United States.
"The ones who should be helping you are instead trying to take a position of... Trump is often seen as a bully and that's exactly what he looks like. In fact, a bully is bullying Europe and also kind of the rest of the world. This helps no one.'
FILE PHOTO: The Dubai Financial Market, United Arab Emirates November 8, 2020. REUTERS/Christopher Pike
Major stock markets in the Gulf fell in early trade on Monday, although the losses were limited as investors are accustomed to Trump's policy swings.
Saudi Arabia's benchmark index eased 0.2%, hit by a 0.4% fall in Al Rajhi Bank .
However, ACWA Power Co advanced more than 1%. The firm signed power purchase agreements on Sunday for clean energy projects with a capacity of 15 gigawatts and investments worth around $8.3 billion, the Saudi state news agency (SPA) said.
Dubai's main share index dropped 0.3%, with sharia-compliant lender Dubai Islamic Bank declining 0.9% and toll operator Salik Company losing 0.7%.
In Abu Dhabi, the index lost 0.3%.
The decreased 0.5%, weighed down by a 0.8% slide in petrochemical maker Industries Qatar.