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Business Times
27-05-2025
- Business
- Business Times
Brussels seeks companies' US spending plans as Trump hails move toward talks
[BERLIN] European Union officials have asked the EU's leading companies and CEOs for details of their US investment plans, according to two sources familiar with the matter, as Brussels prepares to advance trade talks with Washington after US President Donald Trump backtracked on threatened steep tariffs on imports from the bloc. Trump said on Tuesday the European Union's move to set up talks was positive and that he hoped Europe would 'open up' to trade with the US, even as he repeated a threat to impose trade terms if no agreement emerges. 'I have just been informed that the EU has called to quickly establish meeting dates. This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America,' Trump wrote on his social media platform. Over the weekend, Trump walked back a threat to impose 50 per cent tariffs on goods from the region beginning June 1 after 'a very nice call' with EU Commission chief Ursula von der Leyen. The reversal helped power global stocks higher on Tuesday, with US indexes recouping their losses from late last week. The S&P 500 Index was up 2 per cent in mid-afternoon trading, its biggest gain in two weeks. Ahead of the talks, members of the Confederation of European Business, also known as BusinessEurope, an alliance of 42 federations across the region, received a survey from the European Commission on Monday. It requested information on upcoming US investments with an instruction to respond as soon as possible, one source said. 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 A similar note seeking information on investment plans for the next five years was sent to the 59-person European Round Table for Industry, a second source said, with a note that the request came personally from von der Leyen. The roundtable's members include the CEOs of companies ranging from chip equipment maker ASML to chemicals group BASF, software company SAP, and automakers BMW and Mercedes-Benz. BusinessEurope's members include employer and industry associations representing an equally wide range of companies, notably Germany's auto sector, as well as the aerospace and pharmaceutical industries. BusinessEurope confirmed it had been contacted to assist with collecting the most recent data on European investment in the US to demonstrate the importance of EU-US economic ties. The European Round Table for Industry did not immediately respond to a request for comment, while the Commission declined to comment. The sources asked not to be named because they were not authorised to speak publicly on the issue. Uncertainty saps investor appetite The Commission, which oversees trade policy for the 27-nation European Union, is stepping up efforts to secure a deal with the United States to end US import tariffs on EU goods, or at least prevent any increases. The Commission is trying to establish what might satisfy Trump, having offered a deal in which both sides move to zero tariffs on industrial goods, and the EU buys more soybeans, arms and liquefied natural gas. Trump has made clear a chief goal of his tariffs is to re-industrialise the United States, towards which European corporate investment could contribute. Some of the biggest investment announcements from Europe so far have come from the pharmaceutical sector, with Swiss pharma companies Roche and Novartis pledging US$50 billion and US$23 billion respectively. France's Sanofi has said it wants to invest at least US$20 billion through 2030. However, further plans are under threat by Trump's executive order on drug pricing, Roche flagged earlier in May. At least seven other European companies have said they would increase investments in the US, but gave no specific details on spending plans, a Reuters review of releases and executive comments on earnings conference calls over the last two months shows. A survey by Germany's Chamber of Commerce and Industry this month found that 24 per cent of companies planned higher investments in the US in the coming year, but 29 per cent were reducing their investments. An industry association source speaking on condition of anonymity said the uncertainty caused by Trump's volatile policy announcements had reduced interest in US investment. Italian tyre maker Pirelli said it had to suspend plans to invest further in the US as it needed to ease tensions with Chinese state-owned group Sinochem, one of its major shareholders. Asean: No beggar-thy-neighbour South-east Asian leaders, meanwhile, on Tuesday agreed that any bilateral deals they might strike with the US would not harm the economies of fellow members. Malaysia's Prime Minister Anwar Ibrahim, the current chair of the Association of Southeast Asian Nations, said there was consensus during an Asean summit in Kuala Lumpur that any deals negotiated with Washington would ensure the interests of the region as a whole were protected. South-east Asia is among the regions hardest hit by the tariffs, with six of its countries facing levies of between 32 per cent and 49 per cent in July if negotiations on reductions fail. 'While proceeding with bilateral negotiations ... the consensus rose to have some sort of understanding with Asean that decisions should not be at the expense of any other country,' said Anwar, who on Monday said he had written to Trump requesting an Asean-US meeting on the tariffs. 'So we will have to protect the turf of 650 or 660 million people,' he said of Asean. REUTERS
Hindustan Times
27-05-2025
- Business
- Hindustan Times
Brussels seeks companies' US spending plans as Trump hails move toward talks
* European corporate spending could help re-industrialise US * Trump calls urgency around talks a 'positive event' * Some German companies losing interest in US investment, survey finds * ASEAN leaders vow to avoid beggar-thy-neighbor deals with the US BERLIN/WASHINGTON/KUALA LUMPUR, - E uropean Union officials have asked the EU's leading companies and CEOs for details of their U.S. investment plans, according to two sources familiar with the matter, as Brussels prepares to advance trade talks with Washington after U.S. President Donald Trump backtracked on threatened steep tariffs on imports from the bloc. Trump said on Tuesday the European Union's move to set up talks was positive and that he hoped Europe would "open up" to trade with the U.S., even as he repeated a threat to impose trade terms if no agreement emerges. "I have just been informed that the E.U. has called to quickly establish meeting dates. This is a positive event, and I hope that they will, FINALLY, like my same demand to China, open up the European Nations for Trade with the United States of America," Trump wrote on his social media platform. Over the weekend, Trump walked back a threat to impose 50% tariffs on goods from the region beginning June 1 after "a very nice call" with EU Commission chief Ursula von der Leyen. The reversal helped power global stocks higher on Tuesday, with U.S. indexes recouping their losses from late last week. The S&P 500 Index was up 2% in mid-afternoon trading, its biggest gain in two weeks. Ahead of the talks, members of the Confederation of European Business, also known as BusinessEurope, an alliance of 42 federations across the region, received a survey from the European Commission on Monday. It requested information on upcoming U.S. investments with an instruction to respond as soon as possible, one source said. A similar note seeking information on investment plans for the next five years was sent to the 59-person European Round Table for Industry, a second source said, with a note that the request came personally from von der Leyen. The roundtable's members include the CEOs of companies ranging from chip equipment maker ASML to chemicals group BASF, software company S, and automakers BMW and Mercedes-Benz. BusinessEurope's members include employer and industry associations representing an equally wide range of companies, notably Germany's auto sector, as well as the aerospace and pharmaceutical industries. BusinessEurope confirmed it had been contacted to assist with collecting the most recent data on European investment in the U.S. to demonstrate the importance of EU-U.S. economic ties. The European Round Table for Industry did not immediately respond to a request for comment, while the Commission declined to comment. The sources asked not to be named because they were not authorised to speak publicly on the issue. UNCERTAINTY SS INVESTOR PETITE The Commission, which oversees trade policy for the 27-nation European Union, is stepping up efforts to secure a deal with the United States to end U.S. import tariffs on EU goods, or at least prevent any increases. The Commission is trying to establish what might satisfy Trump, having offered a deal in which both sides move to zero tariffs on industrial goods, and the EU buys more soybeans, arms and liquefied natural gas. Trump has made clear a chief goal of his tariffs is to re-industrialise the United States, towards which European corporate investment could contribute. Some of the biggest investment announcements from Europe so far have come from the pharmaceutical sector, with Swiss pharma companies Roche and Novartis pledging $50 billion and $23 billion respectively. France's Sanofi has said it wants to invest at least $20 billion through 2030. However, further plans are under threat by Trump's executive order on drug pricing, Roche flagged earlier in May. At least seven other European companies have said they would increase investments in the U.S., but gave no specific details on spending plans, a Reuters review of releases and executive comments on earnings conference calls over the last two months shows. A survey by Germany's Chamber of Commerce and Industry this month found that 24% of companies planned higher investments in the U.S. in the coming year, but 29% were reducing their investments. An industry association source speaking on condition of anonymity said the uncertainty caused by Trump's volatile policy announcements had reduced interest in U.S. investment. Italian tyre maker Pirelli said it had to suspend plans to invest further in the U.S. as it needed to ease tensions with Chinese state-owned group Sinochem, one of its major shareholders. ASEAN: NO BEGGAR-THY-NEIGHBOR Southeast Asian leaders, meanwhile, on Tuesday agreed that any bilateral deals they might strike with the U.S. would not harm the economies of fellow members. Malaysia's Prime Minister Anwar Ibrahim, the current chair of the Association of Southeast Asian Nations, said there was consensus during an ASEAN summit in Kuala Lumpur that any deals negotiated with Washington would ensure the interests of the region as a whole were protected. Southeast Asia is among the regions hardest hit by the tariffs, with six of its countries facing levies of between 32% and 49% in July if negotiations on reductions fail. "While proceeding with bilateral negotiations ... the consensus rose to have some sort of understanding with ASEAN that decisions should not be at the expense of any other country," said Anwar, who on Monday said he had written to Trump requesting an ASEAN-U.S. meeting on the tariffs. "So we will have to protect the turf of 650 or 660 million people," he said of ASEAN.
Irish Examiner
27-05-2025
- Business
- Irish Examiner
Brussels seeks detail on EU firms' US investment plans ahead of trade talks
European Union policymakers have asked the EU's leading companies and CEOs to swiftly provide detail of their US investment plans, according to two sources familiar with the matter, as Brussels prepares for trade talks with Washington. Members of the Confederation of European Business, also known as BusinessEurope, an alliance of 42 federations across the region, received a survey from the European Commission on Monday. It asked for information on upcoming US investments with the instruction to respond as soon as possible, one source said. A similar note seeking information on investment plans for the next five years was sent to the 59-person European Roundtable for Industry, a second source said, with a note that the request came personally from European Commission President Ursula von der Leyen. The roundtable's members include the CEOs of companies ranging from chip equipment maker ASML to chemicals group BASF to software company SAP, as well as carmakers BMW and Mercedes-Benz. BusinessEurope's members include employer and industry associations representing an equally wide range of companies, notably Germany's auto sector, as well as the aerospace and pharmaceutical industries. BusinessEurope and the European Roundtable for Industry did not immediately respond to requests for comment, while the commission declined to comment. The sources asked not to be named because they were not authorised to speak publicly on the issue. The commission, which oversees trade policy for the 27-nation EU, is stepping up efforts to secure a deal with the United States to end US import tariffs on EU goods, or at least prevent any increases. The commission is trying to establish what might satisfy US president Donald Trump, having offered a deal in which both sides move to zero tariffs on industrial goods, and the EU buys more soybeans, arms and liquefied natural gas. Trump has made clear a chief goal of his tariffs is to re-industrialise the US, towards which European corporate investment could contribute. Some of the biggest investment announcements from Europe so far have come from the pharmaceutical sector, with Swiss pharma companies Roche and Novartis pledging $50bn (€43.9bn) and $23bn respectively. France's Sanofi has said it wants to invest at least $20bn through 2030. However, further plans are under threat by Trump's executive order on drug pricing, Roche flagged earlier in May. At least seven other European companies have said they would increase investments in the US, but gave no specific details on spending plans, a Reuters review of releases and executive comments on earnings conference calls over the last two months shows. A survey by Germany's Chamber of Commerce and Industry this month found that 24% of companies planned higher investments in the US in the coming year, but 29% were reducing their investments. Reuters
Japan Times
19-05-2025
- Business
- Japan Times
Britain's big EU reset turns out to be just the start of talks
Prime Minister Keir Starmer heralded a "landmark deal' between the U.K. and the European Union on Monday that he billed as a reset moment for relations under his government. Still, with many details unresolved, Brexit never quite seems to be over. Starmer said an agreement to ease border checks on agri-food products would drive down prices at supermarkets and add some £9 billion ($12 billion) to annual gross domestic product by 2040. For its part, Brussels secured 12 years of ongoing access to British fishing waters on existing terms following a late concession from the U.K. Starmer sold the deal as a "win-win.' The mood music in the gilded hall of Lancaster House was warm and positive, with European Commission President Ursula von der Leyen praising the "leadership' of her "dear Keir,' and both leaders sending a message to Moscow that they were united in the face of Russia's ongoing invasion of Ukraine. Yet beyond those limited tangible outcomes, the remainder of the "renewed agenda' unveiled at a summit in London amounted to an agreement to keep negotiating. Talks in the weeks leading up to the event were often fraught and ran down to the wire, with much ultimately left unfinished. "Today's announcement has created the momentum to advance our vital economic partnership,' BusinessEurope Director-General Markus J. Beyrer said. "We now need to see real progress on making it easier to trade in goods and services,' he added. "We should also strive to facilitate the short-term mobility of professionals.' Indeed, the two sides agreed only to "work towards' a youth visa program that could facilitate the travel of students and young workers between Britain and the continent. The EU had been disappointed that the U.K. wasn't more ambitious at this meeting, while Starmer, determined not to be seen doing anything to increase immigration, insisted any such program would be capped and time-limited. Exactly how many young people from the EU will be allowed to come to the U.K. and for how long will be determined in future negotiations. British Prime Minister Keir Starmer speaks during a business reception on the sidelines of the U.K.-EU summit at No. 10 Downing St. in London on Monday. | EPA / VIA Bloomberg While the U.K. publicly claimed it had scored a victory by securing the right of British citizens to use e-gates in EU countries — something that could end long passport queues which have become a frustration since Brexit — the text described only their "potential use where appropriate.' Starmer was later forced to concede to reporters that he wasn't sure if Britons would be allowed to use EU e-gates on their holidays this summer, with the details still to be thrashed out. Similarly, a defense and security pact committed to "swiftly explore' U.K. access to the EU's new €150 billion ($169 billion) defense fund, with no confirmation on when that might happen, what conditions would be attached, or how much Britain would have to pay for its companies to be involved. Von der Leyen suggested it could take "weeks' to answer those questions. Again, Starmer was unsure. As such, there seemed to be a gulf between the grandiose rhetoric used by the U.K. government to sell the deal and its likely impact on the economy. Downing Street has in recent days tried to forge a narrative of Starmer as a globe-trotting deal-maker, appearing to borrow from the high-tempo announcements of President Donald Trump to claim he had signed three "trade deals' in two weeks with India, the U.S. and the EU. "Deals that will grow our economy, putting more money in the pockets of working people,' the prime minister argued Monday. Yet while it's true that Starmer concluded a free trade agreement with New Delhi, it is likely to add no more than 0.1% to U.K. economic output in the long run, according to Bloomberg Economics calculations. The outline of an agreement with the U.S. may have reduced some tariffs but it was well short of an FTA, and while the agri-food agreement with the EU should deliver a gain for the British economy, even by the government's own numbers it is only likely to translate to around 0.2% of GDP. The reality is that while the U.K.'s red lines on declining to join the EU's single market or customs union remain, and the EU continues to refuse to allow any cherry-picking of the most attractive aspects of membership without the trade-offs on free movement of people, any reset of ties was always going to be limited. The agreement contains little about services, which dominate the U.K.'s economy, and no agreement was reached to recognize professional qualifications. The deal paves the way for Britain to join the bloc's electricity market, however, and to link up the U.K. and EU's carbon markets. Starmer has learned a lesson: it is not easy negotiating with the EU. The U.K. had originally been prepared to extend fishing arrangements with the EU by no more than four years, causing Brussels to insist on an equivalent time-limit on the sanitary and phytosanitary deal. Eventually the EU dropped that latter demand, but only after Starmer had agreed to lengthen the fishing deal to 12 years. "Everyone will either present it as a great deal that will boost economic growth, or a sell out. And it's not really either of those things,' said Raoul Ruparel, former U.K. Brexit negotiator who is now a director at Boston Consulting Group. "A few helpful bits, but none of those really make a material economic difference — other than the SPS stuff in the agricultural sector, it doesn't really affect many businesses.' Looming behind Starmer is the specter of Brexit campaigner Nigel Farage, now leader of the Reform U.K. party which is currently leading opinion polls. Farage told Bloomberg Starmer's deal on fisheries "will be the end of the industry,' a precursor to attacks he can be expected to make on the Labour government as he targets its working class heartlands in the years to come. That'll be front and center of the prime minister's mind in his future talks with the EU, especially on migration.
Telegraph
13-05-2025
- Business
- Telegraph
‘Nasty' EU finds itself at the back of Trump's trade deal queue
Donald Trump has doused EU hopes that his rapprochement with Britain and China might quickly lead to a trade ceasefire with Brussels. As he announced his breakthrough with Beijing on Monday, Mr Trump turned his fire on the EU, describing the bloc as 'nastier than China'. 'They treated us very unfairly,' Mr Trump told reporters. 'They sell us 13m cars. We sell them none. They sell us their agricultural products. We sell them virtually none. They don't take our products. That gives us all the cards. 'The European Union is in many ways nastier than China, and we've just started with them. Oh, they'll come down a lot. You watch.' Although the EU last Thursday said it was ready to hit the US with tariffs on €95bn (£80bn) of American imports, Mr Trump that same day described European Commission president Ursula von der Leyen as 'fantastic' and said, 'I hope we're gonna meet'. This was taken as a signal that Mr Trump might be open to doing a deal with the EU, a bloc he has previously said was created explicitly to 'screw' the US. Pressure is now growing on the EU to strike a deal, particularly as Japan and Korea may also agree terms with Mr Trump on tariffs before Brussels gets a look-in. Europe's powerful business lobby is growing increasingly skittish at the prospect of a trade war erupting with the US when the 90-day tariff pause elapses in early July. Fredrik Persson, BusinessEurope's president, has urged the two sides to eliminate the existing tariffs and commit to avoiding any further levies. 'We should preserve tariff-free arrangements that support our companies in key sectors such as aerospace, spirits, and medical devices,' he said. Maros Sefcovic, the EU trade negotiator, has been to Washington in the past month to hold initial talks, while tech commissioner Henna Virkkunen will also head to the US on Tuesday. Mr Trump has complained about the EU's crackdown on US tech companies, an issue that may have to be folded into any deal on tariffs. At the weekend, Ms von der Leyen said she would meet Mr Trump only if there was a 'concrete package to discuss'. But the president's comparison of the EU and China has dialled down expectations of a breakthrough. Trade experts questioned Mr Trump's claim that the EU was 'nastier' than China. 'It is true that the EU does impose some tariffs and regulatory barriers to US trade, but they are not comparable to China,' says Sam Lowe, a partner at advisory firm Flint Global. 'The EU average applied tariff is very low.' Before Mr Trump re-entered the White House, the average US tariff rate on imports from the EU was just under 1.5pc, while the EU's average tariff on US imports was 1.35pc. But during the president's 'liberation day' announcement on April 2, Mr Trump hit the EU with a 20pc reciprocal tariff, plus a 25pc tariff on imports of vehicles and car parts. A week later, he suspended the reciprocal tariffs, including the EU's 20pc rate, for 90 days to allow the White House to fix bilateral deals. Mr Trump last week nailed down the first such deal with Britain, and on Monday announced the details of a major climbdown in his tariff war with China. 'Zero for zero' tariff package But the EU remains in limbo. If the 20pc US tariff comes into force in early July, it will hit €379bn of EU exports to the US, while the 25pc tariff piles more pain on €50bn-plus of automotive goods. The Bruegel Institute estimates that a no-deal outcome across the Atlantic could wipe 0.7 percentage points off US GDP, and 0.3 points off the EU's economy. Brussels could even unleash its 'anti-coercion instrument', originally created to face down threats from China, against US services sectors like tech and banking. Mr Trump's preference for personal relationships and his suspicion of the bloc have left Europe's individual leaders having to do much of the diplomatic heavy lifting with the US president. French president Emmanuel Macron, Ireland's taoiseach Micheál Martin, Germany's Friedrich Merz and Italy's Giorgia Meloni have all tried their own individual charm offensives. But Mr Trump has a personal beef with some of these countries, ranging from Ireland's wooing of US tech and pharmaceutical companies to Germany's 'freeloading' of US defence. The EU has also struggled to move as quickly in trade talks with countries like China and the UK, because it must build consensus among its 27 member states. However, given its single market boasts 460m consumers, the bloc will no doubt have undeniable heft once trade negotiations begin in earnest.
