Latest news with #EU-U.S.
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.
Yahoo
27-05-2025
- Business
- Yahoo
Wall Street's massive swings signal investors are now ‘too optimistic' about Trump's tariff agenda, warns UBS
Investors are being cautioned not to overreact to rapidly shifting U.S. trade policy, as markets rallied on a delayed EU tariff threat from President Trump—despite little change in economic fundamentals. Analysts warn that frequent policy reversals, driven by internal White House factions and media sensationalism, are creating volatility and pricing in unnecessary risk, even as U.S.-EU negotiations show signs of progress. Investors are being warned not to get caught up in the swings of trade policy as analysts highlights there may yet be more twists to come. Over the weekend markets rallied on the news that President Trump's latest tariff threats on the EU had been delayed—an emerging habit of the Oval Office—and will now come into effect on July 9. It marks a rapidly evolving trade picture between the U.S. and Europe, having gone from 20% tariffs threatened on 'Liberation Day' on April 2, to the universal 10% tariff a little over a week later, to the threat of 50% being introduced on June 1. Markets bounced on the news that this hypothetical crisis had been averted—as opposed to the fundamentals of the outlook improving—with economists also highlighting that a friendly call between Trump and EU commissioner Ursula von der Leyen does not guarantee relations will stay that way. As Mark Haefele, chief investment officer at UBS Global Wealth Management, wrote in a note yesterday seen by Fortune: 'While more time for EU-U.S. negotiations is good news, the speed of the recent rebound in stocks suggests that investors may have become too optimistic on path for trade discussions. At the start of last week the S&P 500 had risen to within 3% of an all-time high, up close to 20% from its low point on 8 April, when worries over the threat of a global trade war were at their most intense.' At the time of writing Europe's major stock indexes are up: London's FTSE 100 up 1%, Germany's DAX up 0.5% and Paris's CAC 40 up 0.16%. That's a far cry from Friday, when Trump threatened the June tariffs on Europe. In the moments following Trump's announcement on Truth Social last week, the DAX was down 2%, FTSE 100 down 0.9% and Paris's CAC 40 was down 2.4%. So when policy is changing so quickly, why are markets still believing the rhetoric coming out of the White House and potentially hamstringing their portfolios as a result? As UBS's Paul Donovan puts it: 'These retreats are so frequent that investors should rationally expect them. So why do markets still react to the initial announcements?' Donovan, who is UBS's chief economist, wrote there are three reasons why markets are continuing to react despite the fact many have learned that Trump's threats will not come to immediate fruition, The first is insurance, Donovan writes: 'For instance, supply might be diverted from other markets to the U.S. to build stockpiles before a threatened tariffs. Taking out insurance against low probability events still incurs a cost.' The second is that risk premiums are now being priced into markets because of policy changes, Donovan continues: 'Investors perceive two factions on trade policy—the conventional and a more radical faction. Aggressive tariff policies suggest the radical faction is dominating Trump, and markets favor the conventional over the unpredictable.' The third is the shock factor, Donovan adds: 'Aggressive tax increases are sensational and attract media coverage. The retreats are rather more mundane. This may shape consumers' perceptions of policy, if the potential damage of tariffs is remembered and Trump's retreats are forgotten. 'If consumers blame price increases on tariffs that may not actually materialize, it opens the way to more profit-led inflation by retailers.' As Haefele notes, part of the turnaround in markets' fortunes is an expectation that negotiations between the EU and the U.S. will continue to go well. The Trump 2.0 administration's view on the European trading bloc is not a particularly flattering one. The president has repeatedly said the EU was created with the sole purpose of taking advantage of the U.S.—as opposed to the more widely held view that the bloc was formed in the wake of the Second World War to prevent similar atrocities occurring in the future. Trump's tone was considerably warmer over the weekend following a call with von der Leyen, and the EU's chief negotiator has indicated negotiations are expected to continue 'at pace.' EU Commission spokeswoman Paula Pinho also told a news conference this weekend that von der Leyen and Trump agreed to 'fast-track' the negotiations. The result of the call means that 'there is a new impetus for these negotiations, and we will take it from there … from our side, we always said we were ready to make a deal.' A similar time pressure had been applied to negotiations with the U.K., which came away with the much-touted 'first mover' advantage when it came to an initial deal with the Trump team. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
EU trade negotiator says calls with US officials were 'good' after Trump extends tariff deadline
FRANKFURT, Germany (AP) — The European Union's chief trade negotiator said Monday he had 'good calls' with Trump administration officials and the EU was 'fully committed' to reaching a trade deal by a July 9 deadline, after Trump agreed to delay his threatened 50% tariff — or import tax — on European goods. Trade Commissioner Maros Sefcovic said on X that the EU's executive commission was pushing 'at pace' towards an EU-U.S. deal and the two sides were in constant contact. Sefcovic's calls with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer came a day after Trump said he would delay implementation of the 50% tariff from June 1 until July 9 to buy time for negotiations with the 27-country EU. That announcement came after Trump's call with EU Commission President Ursula von der Leyen, who told Trump that she 'wants to get down to serious negotiations,' according to the U.S. president on Sunday. In a social media post Friday, Trump had threatened to impose the 50% tariff on EU goods, asserting that the bloc had been 'very difficult to deal with' on trade and that negotiations were 'going nowhere.' The stakes are high given the size of the U.S.-EU trading relationship. Although the trade partners don't have a free trade agreement like the one the U.S. has with Mexico and Canada, some $1.8 trillion in goods and services cross the Atlantic in both directions each year. EU Commission spokeswoman Paula Pinho told a news conference that von der Leyen and Trump agreed to 'fast-track' the negotiations. The result of the call means that 'there is a new impetus for these negotiations, and we will take it from there ... from our side, we always said we were ready to make a deal.' The EU has offered Trump a 'zero for zero' deal in which tariffs would be removed on industrial goods including automobiles, but the U.S. administration has said it will not lower tariffs below a 10% baseline imposed on almost all its trading partners. Trump has also announced tariffs of 25% on steel and automobiles.
San Francisco Chronicle
26-05-2025
- Business
- San Francisco Chronicle
EU trade negotiator says calls with US officials were 'good' after Trump extends tariff deadline
FRANKFURT, Germany (AP) — The European Union's chief trade negotiator said Monday he had 'good calls' with Trump administration officials and the EU was 'fully committed' to reaching a trade deal by a July 9 deadline, after Trump agreed to delay his threatened 50% tariff — or import tax — on European goods. Trade Commissioner Maros Sefcovic said on X that the EU's executive commission was pushing 'at pace' towards an EU-U.S. deal and the two sides were in constant contact. Sefcovic's calls with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer came a day after Trump said he would delay implementation of the 50% tariff from June 1 until July 9 to buy time for negotiations with the 27-country EU. That announcement came after Trump's call with EU Commission President Ursula von der Leyen, who told Trump that she 'wants to get down to serious negotiations,' according to the U.S. president on Sunday. In a social media post Friday, Trump had threatened to impose the 50% tariff on EU goods, asserting that the bloc had been 'very difficult to deal with' on trade and that negotiations were 'going nowhere.' The stakes are high given the size of the U.S.-EU trading relationship. Although the trade partners don't have a free trade agreement like the one the U.S. has with Mexico and Canada, some $1.8 trillion in goods and services cross the Atlantic in both directions each year. EU Commission spokeswoman Paula Pinho told a news conference that von der Leyen and Trump agreed to 'fast-track' the negotiations. The result of the call means that 'there is a new impetus for these negotiations, and we will take it from there ... from our side, we always said we were ready to make a deal.' The EU has offered Trump a 'zero for zero' deal in which tariffs would be removed on industrial goods including automobiles, but the U.S. administration has said it will not lower tariffs below a 10% baseline imposed on almost all its trading partners. Trump has also announced tariffs of 25% on steel and automobiles.
Hindustan Times
26-05-2025
- Business
- Hindustan Times
EU trade negotiator says calls with US officials were 'good' after Trump extends tariff deadline
FRANKFURT, Germany — The European Union's chief trade negotiator said Monday he had 'good calls' with Trump administration officials and the EU was 'fully committed' to reaching a trade deal by a July 9 deadline, after Trump agreed to delay his threatened 50% tariff — or import tax — on European goods. Trade Commissioner Maros Sefcovic said on X that the EU's executive commission was pushing 'at pace' towards an EU-U.S. deal and the two sides were in constant contact. Sefcovic's calls with U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer came a day after Trump said he would delay implementation of the 50% tariff from June 1 until July 9 to buy time for negotiations with the 27-country EU. That announcement came after Trump's call with EU Commission President Ursula von der Leyen, who told Trump that she 'wants to get down to serious negotiations,' according to the U.S. president on Sunday. In a social media post Friday, Trump had threatened to impose the 50% tariff on EU goods, asserting that the bloc had been 'very difficult to deal with' on trade and that negotiations were 'going nowhere.' The stakes are high given the size of the U.S.-EU trading relationship. Although the trade partners don't have a free trade agreement like the one the U.S. has with Mexico and Canada, some $1.8 trillion in goods and services cross the Atlantic in both directions each year. EU Commission spokeswoman Paula Pinho told a news conference that von der Leyen and Trump agreed to 'fast-track' the negotiations. The result of the call means that 'there is a new impetus for these negotiations, and we will take it from there ... from our side, we always said we were ready to make a deal.' The EU has offered Trump a 'zero for zero' deal in which tariffs would be removed on industrial goods including automobiles, but the U.S. administration has said it will not lower tariffs below a 10% baseline imposed on almost all its trading partners. Trump has also announced tariffs of 25% on steel and automobiles.
