Latest news with #EUUSdeal
RNZ News
21 hours ago
- Automotive
- RNZ News
EU heading towards 15 percent tariff deal with US, EU diplomats say
By Philip Blenkinsop , Reuters Photo: AFP / Brendan Smialowski The European Union is heading towards a trade deal with Washington that would result in a broad 15 percent tariff on EU goods imported into the US, avoiding a harsher 30 percent levy slated to be implemented from 1 August, two EU diplomats said on Wednesday. The rate, which could also extend to cars, would mirror the framework agreement the United States struck with Japan . Officials from the European Commission, which negotiates trade deals on behalf of the 27-nation bloc, briefed EU envoys on the state of talks with their US counterparts. US President Donald Trump would ultimately make any final decision on a deal, however. Under the outlines of the potential deal, the 15 percent rate could apply to sectors including cars and pharmaceuticals and would not be added to long-standing US duties, which average just under 5 percent. There could also be concessions for sectors like aircraft, lumber as well as some medicines and agricultural products, which would not face tariffs, the diplomats said. Washington does not, however, appear willing to lower its current 50 percent tariff on steel, they said. The Commission said earlier on Wednesday that its primary focus was to achieve a negotiated outcome to avert the threatened 30 percent tariffs. At the same time it planned to submit counter-tariffs on €93 billion (US$109 billion) worth of US goods to EU members for approval. A vote is expected on Thursday, though no measures would be imposed until 7 August. Germany supported the EU readying countermeasures, a government representative said. If Trump's 30 percent tariffs are implemented, EU diplomats also said there was broad support among European governments to activate wide-ranging so-called "anti-coercion" measures, which would allow the bloc to target US services and other sectors. The EU appears to be following in the footsteps of Japan, whose agreement with the United States is the most significant Trump has struck since launching his tariff offensive in April. European shares climbed around 1 percent, led by automobile stocks, following the US-Japan announcement. One stand-out feature of that deal was that the same 15 percent rate applies to cars, compared to the current US tariff of 27.5 percent, something the EU may want for its own auto exports. The US imported vehicles and automotive parts valued at more than US$55b from Japan last year. EU exports were €47.3b (US$55.45b). Far fewer US cars were sold into the EU or Japanese markets. EU officials say Washington has shown little sign of budging on car tariffs, but the Japan deal could hint at flexibility. "Whatever the Japanese got will become the minimum for the EU negotiating objectives," said Simon Evenett, professor of geopolitics and strategy at IMD Business School. - Reuters
Irish Times
09-07-2025
- Business
- Irish Times
EU and US on brink of tariff deal to avoid trade war
The European Union and the United States are believed to be on the brink of a deal that would stop the transatlantic dispute over tariffs escalating into a full blown trade war. Negotiations between the two sides are near to concluding an 'agreement in principle', which sources say could be finalised imminently, if approved by US president Donald Trump . The 'agreement in principle', if signed off on by Mr Trump, would buy time for technical negotiations to continue, to iron out the more complex details of the future EU-US trading relationship, without the threat of steeper tariffs hanging over the discussions. The European Commission's trade negotiators, led by Maroš Šefčovič , are understood to be close to an agreement on the broad parameters of a deal on tariffs with US officials. Mr Šefčovič spoke to commerce secretary Howard Lutnick in the last 48 hours and had a further call scheduled with trade negotiator Jamieson Greer on Wednesday evening. READ MORE The high-level contact follows a telephone call on Sunday between Mr Trump and European Commission president Ursula von der Leyen , which she said helped 'move things forward'. The outline of a draft agreement negotiated between the EU and US would see the 10 per cent tariff Mr Trump put on nearly all EU imports remain. However, EU officials were hopeful of securing tariff exemptions for the aviation and spirits sectors in the deal, according to briefings given to diplomats in Brussels in recent days. The exact details of the agreement could be subject to change before it is finally signed off. US tariffs charged on imports coming from the EU were due to increase to at least 20 per cent on July 9th, but the deadline was extended to August 1st by Mr Trump earlier this week. Negotiations between US and EU officials had intensified in recent weeks, as the initial deadline loomed. [ EU working 'day and night' for tariff deal, Ursula von der Leyen says Opens in new window ] EU negotiators have been pushing back on a last-minute proposal tabled by the Trump administration, that would have seen tariffs on EU agricultural products set at a higher 17 per cent rate. The text of any deal will likely only run to several pages. It is unclear whether it will include a reference to pharmaceuticals, a sector Mr Trump has promised to hit with huge import duties at a later date. The negotiating teams have been exploring a quota scheme that would allow European car manufacturers to offset some portion of the tariffs they would be charged, based on the size of their manufacturing footprint in the US. The commission had threatened to put counter-tariffs on imports of a range of US products, such as aircraft, medical devices, automobiles, bourbon and agricultural produce, in the event talks collapsed without agreement. Government sources in Dublin said they were on standby for developments, but cautioned it was hard to be sure a deal would be concluded in the coming days, given the unpredictability of the Trump administration. [ China warns countries on agreeing US tariff deal that would come at Beijing's expense Opens in new window ] While much of the substance of the agreement was believed to be very close to being settled, diplomatic sources in Brussels also warned that Mr Trump could decide to reopen large aspects of the negotiations unexpectedly. An agreement that averts the prospect of cripplingly high US tariffs on European trade from the start of next month would be hugely welcomed in Government Buildings. However, there is concern about the possibility Mr Trump could introduce separate tariffs on pharmaceutical products at a later date. Pharmaceuticals make up the bulk of the Republic's exports across the Atlantic, given the large concentration of US pharma firms with manufacturing sites in Ireland.
BreakingNews.ie
07-07-2025
- Business
- BreakingNews.ie
Taoiseach ‘hopeful' of EU-US deal as tariff deadline pushed back
The Taoiseach remains 'hopeful' that the EU can reach a deal with the US on tariffs, as the Trump administration pushed back a deadline for increased rates. Micheál Martin said both sides continue to negotiate the 'fine detail' of future arrangements. Advertisement White House Press Secretary Karoline Leavitt announced on Monday that US President Donald Trump would be delaying an increase to the baseline 10 per cent tariff rate to August 1st. President of the European Commission Ursula von der Leyen. Photo: Carl Court/PA. Countries had been working to a Wednesday deadline to make a new deal with the Trump administration. Speaking to the media after a phone call with European Commission President Ursula von der Leyen on Monday, Mr Martin said: 'We remain hopeful that the US and the European Union can agree an outline agreement or framework principle agreement this week. 'There's still a number of issues to negotiated, nothing has been rejected, definitively. Advertisement 'But what it does illustrate, though, that even if a framework agreement is arrived at, there would be a lot of negotiations subsequently. 'So therefore, whilst it would create some degree of clarity in terms of where we are in the short term, there would still be a number of issues outstanding in respect of that trade issue between the European Union and the United States and indeed between other countries.' Mr Martin said he supported the Commission's position that an agreement should be reached to provide certainty to consumers, businesses and industry. US Ambassador to Ireland Edward S Walsh with Tanaiste Simon Harris. Photo: Brian Lawless/PA. Asked if he expected a 10 per cent baseline tariff to remain in place, the Taoiseach said: 'There are certain realities that probably will emerge from this that will have impact – and are having impact – on a number of sectors. Advertisement 'But at least it gives us some sense of the landscape that we have to deal with.' After the tariff deadline was pushed back, Tánaiste Simon Harris said this would give further time for the EU and US to reach an agreement in principle on a 'mutually beneficial agreement that works for both sides'. In a statement, he said: 'However, it remains the position of the EU and the Irish Government that we would like to conclude discussions on a trade agreement before August 1.' Mr Harris added: 'I remain cautiously optimistic about reaching agreement in principle on a Framework Agreement. Advertisement 'I want to be clear that while it is likely there will be some form of tariffs going forward, their imposition even at a lower rate is bad for consumers, jobs, economic growth and investment.' World Trump seeks to pressure trading partners to make d... Read More Ireland has consistently called for zero-for-zero tariffs in as many areas as possible. The remaining uncertainty around pharmaceuticals remains a significant cause of concern. Mr Harris said: 'My hope is that in the coming days and weeks both sides can work intensively and constructively to bring about an agreement.' Advertisement
The Independent
07-07-2025
- Business
- The Independent
Taoiseach ‘hopeful' of EU-US deal as tariff deadline pushed back
The Taoiseach remains 'hopeful' that the EU can reach a deal with the US on tariffs, as the Trump administration pushed back a deadline for increased rates. Micheal Martin said both sides continue to negotiate the 'fine detail' of future arrangements. White House Press Secretary Karoline Leavitt announced on Monday that US President Donald Trump would be delaying an increase to the baseline 10% tariff rate to August 1. Countries had been working to a Wednesday deadline to make a new deal with the Trump administration. Speaking to the media after a phone call with European Commission President Ursula von der Leyen on Monday, Mr Martin said: 'We remain hopeful that the US and the European Union can agree an outline agreement or framework principle agreement this week. 'There's still a number of issues to negotiated, nothing has been rejected, definitively. 'But what it does illustrate, though, that even if a framework agreement is arrived at, there would be a lot of negotiations subsequently. 'So therefore, whilst it would create some degree of clarity in terms of where we are in the short term, there would still be a number of issues outstanding in respect of that trade issue between the European Union and the United States and indeed between other countries.' Mr Martin said he supported the Commission's position that an agreement should be reached to provide certainty to consumers, businesses and industry. Asked if he expected a 10% baseline tariff to remain in place, the Taoiseach said: 'There are certain realities that probably will emerge from this that will have impact – and are having impact – on a number of sectors. 'But at least it gives us some sense of the landscape that we have to deal with.' After the tariff deadline was pushed back, Tanaiste Simon Harris said this would give further time for the EU and US to reach an agreement in principle on a 'mutually beneficial agreement that works for both sides'. In a statement, he said: 'However, it remains the position of the EU and the Irish Government that we would like to conclude discussions on a trade agreement before August 1.' Mr Harris added: 'I remain cautiously optimistic about reaching agreement in principle on a Framework Agreement. 'I want to be clear that while it is likely there will be some form of tariffs going forward, their imposition even at a lower rate is bad for consumers, jobs, economic growth and investment.' Ireland has consistently called for zero-for-zero tariffs in as many areas as possible. The remaining uncertainty around pharmaceuticals remains a significant cause of concern. Mr Harris said: 'My hope is that in the coming days and weeks both sides can work intensively and constructively to bring about an agreement.'
Yahoo
07-07-2025
- Business
- Yahoo
Taoiseach ‘hopeful' of EU-US deal as tariff deadline pushed back
The Taoiseach remains 'hopeful' that the EU can reach a deal with the US on tariffs, as the Trump administration pushed back a deadline for increased rates. Micheal Martin said both sides continue to negotiate the 'fine detail' of future arrangements. White House Press Secretary Karoline Leavitt announced on Monday that US President Donald Trump would be delaying an increase to the baseline 10% tariff rate to August 1. Countries had been working to a Wednesday deadline to make a new deal with the Trump administration. Speaking to the media after a phone call with European Commission President Ursula von der Leyen on Monday, Mr Martin said: 'We remain hopeful that the US and the European Union can agree an outline agreement or framework principle agreement this week. 'There's still a number of issues to negotiated, nothing has been rejected, definitively. 'But what it does illustrate, though, that even if a framework agreement is arrived at, there would be a lot of negotiations subsequently. 'So therefore, whilst it would create some degree of clarity in terms of where we are in the short term, there would still be a number of issues outstanding in respect of that trade issue between the European Union and the United States and indeed between other countries.' Mr Martin said he supported the Commission's position that an agreement should be reached to provide certainty to consumers, businesses and industry. Asked if he expected a 10% baseline tariff to remain in place, the Taoiseach said: 'There are certain realities that probably will emerge from this that will have impact – and are having impact – on a number of sectors. 'But at least it gives us some sense of the landscape that we have to deal with.' After the tariff deadline was pushed back, Tanaiste Simon Harris said this would give further time for the EU and US to reach an agreement in principle on a 'mutually beneficial agreement that works for both sides'. In a statement, he said: 'However, it remains the position of the EU and the Irish Government that we would like to conclude discussions on a trade agreement before August 1.' Mr Harris added: 'I remain cautiously optimistic about reaching agreement in principle on a Framework Agreement. 'I want to be clear that while it is likely there will be some form of tariffs going forward, their imposition even at a lower rate is bad for consumers, jobs, economic growth and investment.' Ireland has consistently called for zero-for-zero tariffs in as many areas as possible. The remaining uncertainty around pharmaceuticals remains a significant cause of concern. Mr Harris said: 'My hope is that in the coming days and weeks both sides can work intensively and constructively to bring about an agreement.'
