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Irish Times
3 days ago
- Business
- Irish Times
Truth Social diplomacy, a shock court ruling and fashion magnate advice: A week inside the EU-US tariff talks
European Commission president Ursula von der Leyen is not short of advice about how to handle Donald Trump. Bernard Arnault, founder and chief executive of French luxury brand giant LVMH, which owns Louis Vuitton, Moët Hennessy and Dior, privately chipped in with his opinion in recent days. The French businessman sat down with Ms von der Leyen late last week, the day before the US president threw European Union-US negotiations into another tailspin, by threatening to introduce blanket 50 per cent tariffs on June 1st. Mr Trump was later persuaded to push his sudden deadline out to July 9th , the date an original 90-day pause on the higher rates of his 'liberation day' tariffs was due to end. READ MORE Mr Arnault, who runs one of Europe's biggest companies, met Ms von der Leyen in the European Commission's headquarters in Brussels to talk about how to avert a transatlantic trade war. The commission, the European Union's (EU) executive branch that sets the bloc's trade policy, has been making little progress in talks with the Trump administration. [ US federal court blocks Trump from imposing sweeping tariffs Opens in new window ] The LVMH executive told Ms von der Leyen he was concerned about the uncertainty caused by Mr Trump's tariffs on global trade. Mr Arnault singled out the champagne wing of his empire, Moët & Chandon, during the discussion. In the May 22nd meeting, the details of which have not been reported before, Mr Arnault stressed the need to reach a deal on tariffs with Mr Trump. That is easier said than done. Ford Chief Lisa Brankin on accelerating the switch to EVs Listen | 41:35 For the last two months European businesses have been facing 10 per cent tariffs, which are import taxes, when selling goods into the US. Cars and steel products sold from the EU to the US have been subject to 25 per cent levies. The threat of across-the-board tariffs of 20 per cent, or even 50 per cent, if negotiations failed, has caused growing alarm across European industries. Separate duties targeting pharmaceutical imports are being considered, which would be a big economic blow to Ireland. But the New York-based Court of International Trade on Wednesday struck down Mr Trump's sweeping 'liberation day' tariffs, ruling these were not legal. The US administration has said it will appeal. 'It's a very significant ruling by the court. It gives you some hope that the rule of law still applies in the United States. Let's see what happens,' said Ignacio Garcia Bercero, who was the commission's chief negotiator on an EU-US trade deal abandoned in 2016. Current talks should pivot to focus on steel, aluminium and automobile tariffs, which are not affected by the ruling, the former senior official told The Irish Times. Negotiators had been racing to hammer out a deal with Mr Trump and head off the worst of his damaging trade levies before July 9th. The court ruling may buy the EU side more time. Sources in Dublin and in Brussels are optimistic the US president ultimately wants an agreement, despite the distance between negotiating positions at the moment. [ Court tariffs bombshell should inspire trading partners to defy Trump ] Mr Trump's post on Truth Social threatening 50 per cent tariffs took people by surprise last Friday, even if it was quickly walked back. 'It's all very volatile,' one Government source said. The shopping list of demands put forward by the White House at one point or another is long. It includes the EU rolling back tech regulations, lowering food safety standards that bar US chlorine-washed chicken and hormone-treated beef and scrapping digital services taxes in France and other countries. Mr Trump has also criticised value-added tax (VAT) charged on goods and services. Working out what is negotiating bluster and what the US side is genuinely interested in has been difficult. 'Don't ask me to predict what a final deal will look like,' one commission official said. The EU has offered to buy more US soybeans and liquefied natural gas (LNG) and to make it easier for the US to sell fish and lobster to the EU and for both sides to drop pre-Trump tariffs on industrial goods to zero. Some easing or tweaks to EU laws have reportedly been mentioned as another possible concession, but a rollback of online guardrails or food safety standards is a red line the commission won't cross. Before the New York court ruling there was a growing expectation the EU would have to stomach some baseline level of US tariffs, likely to be the global 10 per cent rate. Irish businesses were concerned about a no-deal scenario that would leave exports, such as Jameson whiskey or Kerrygold butter, facing a 20 per cent tariff. Irish products would then be sitting on a US supermarket shelf beside Scotch whiskey or a UK butter brand subject to a lower 10 per cent levy. Ms von der Leyen's top adviser, Bjoern Seibert, is right at the heart of the EU's response, directing the strategy behind the scenes. It is understood many of the decisions made inside the commission on this flow through him. He briefed representatives from the 27 EU states at the start of this week. The influential adviser suggested a clearer picture of what the US wanted in a deal was starting to emerge, two people said. Exact details of the ongoing negotiations are being kept under wraps. EU trade commissioner Maros Šefčovič and US commerce secretary Howard Lutnick had planned to focus their discussions on key sectors such as pharmaceuticals, cars, steel and computer chips. The pair speak on the phone regularly and have met several times. Other contested points were being discussed by officials. A delegation of commission trade staff is scheduled to travel to the US next week for talks. The two sides have been exchanging papers setting out their positions, something seen as a forerunner to intensive negotiations taking place in June. The commission has a set of retaliatory tariffs ready to go, if talks stall. These tariffs on US soybeans, Harley-Davidson motorbikes, oranges, steel and other products were paused until mid-July to signal to the US that Europe wanted to talk. A second, larger package of counter-tariffs under consideration would hit US aircraft manufacturers, bourbon whiskey, the automobile industry and many other sectors. 'You need to have them ready ... You keep the gun on the table,' one EU official said of the measures. [ Tariff threat undermines State's ability to deliver economic forecasts, says Donohoe Opens in new window ] The European aviation industry previously warned the commission against targeting Boeing and other US manufacturers, correspondence shows. In an April 14th letter to Mr Šefčovič, Airlines for Europe, which counts Ryanair as a member, said import duties would have a 'severe impact' on European airlines. Companies had placed 'significant' orders for US-made aircraft that they could not cancel, the correspondence seen by The Irish Times said. The Government has objected to the inclusion of US bourbon, civil aircraft and medical devices on the commission's tariff list, which will be finalised next month. EU officials have been drawing up a contingency plan to hit the US even harder, should negotiations collapse and steep tariffs kick in. This would focus on services, rather than goods and products. One option is the EU's anti-coercion instrument (ACI), which has been dubbed the 'big bazooka'. This would allow the bloc to put a levy on US tech giants' digital ad revenues in Europe and restrict US firms from bidding on public contracts in the EU. The Government here is fiercely opposed to tech multinationals being dragged into the thick of the tariff dispute, given the number of those US companies with bases in Dublin. It is understood some commission officials believe there is a way to put tariffs on services without having to resort to the bazooka, which requires a months-long investigation first to confirm the EU is facing economic coercion. The federal trade court ruling has certainly strengthened the EU's hand in negotiations. However, if Mr Trump's blanket measures remain blocked, he may be more likely to pursue tariffs on targeted industries. Pharma could be top of the list. A few weeks back a senior commission official said jokingly that if the EU landed a deal in July to suspend all US tariffs, he would head off on a holiday for the rest of the month, plus August. It's fair to say nobody is booking flights or hotels just yet.
Malay Mail
6 days ago
- Business
- Malay Mail
Deal or not: What to know about the EU-US tariff talks before the extended July 9 deadline
BRUSSELS, May 27 — Before Donald Trump backtracked on his latest threat of heavy tariffs against the European Union, the US president had justified them on the grounds talks with the bloc were 'going nowhere'. Now, with the 50-per cent tariffs put on hold – and a July 9 negotiating deadline restored following a Trump call with EU chief Ursula von der Leyen – Brussels sees fresh impetus for a deal. Here is what we know about negotiations aimed at averting all-out trade war between the transatlantic partners: What's the status of EU-US trade talks? The US president has hit the EU with multiple waves of tariffs: 25-per cent duties on cars, steel and aluminium, and a 20-per cent levy on most European goods. That across-the-board tariff is suspended pending negotiations, though the EU remains subject to a 10-per cent US import levy along with countries around the world. The European Commission has been leading talks on behalf of the 27-country bloc in search of a mutually beneficial deal with Washington -- though with little to show so far. EU trade chief Maros Sefcovic has held multiple calls with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, and on Monday spoke again with both men. The EU remains 'fully committed' to reaching a deal, Sefcovic wrote on X after his calls on Monday. Trump and von der Leyen, meanwhile, have had sparing contacts – including a meeting on the sidelines of Pope Francis's funeral, and Sunday's phone call. A key challenge for the two sides, according to experts, is their different approach. 'Trump's demands appear to reflect deep US frustration with the EU's professional, calm and bureaucratic approach to trade negotiations -- clashing with Trump's willingness to quickly ink sexy-looking deals even if they mean very little in practice,' said Agathe Demarais of the European Council on Foreign Relations (ECFR). What does Trump want? Trump has called for eliminating the EU's surplus in goods trade with the United States, which he says could happen if European countries massively ramp up their purchase of American energy. He has also urged concessions from the bloc on what the United States describes as non-tariff trade barriers and dropping the value-added tax (VAT). Some of the demands including VAT are a non-starter for the EU. EU officials say they are not willing to budge on digital rules that force US Big Tech to make unwelcome changes to their platforms, including Apple, Facebook and Instagram. Little is known about what Washington has specifically asked for during talks. But there appears to be a lack of detail from Washington, with documents laying out generic demands of US partners, rather than being drawn up with the EU in mind. 'There is no clarity around US trade goals, making negotiations almost impossible for Europe. EU negotiators are left pondering what American demands really are,' ECFR's Demarais said. What about the EU? The EU wants to avoid swingeing tariffs that would hurt the European economy – already suffering sluggish growth – and damage an economic and trade relationship worth an estimated US$9.5 trillion. The European side says it has put forward a detailed and structured proposal, including its headline offer of a two-way tariffs exemption on industrial products, including cars. Trump has been dismissive of the zero-for-zero proposal as not enough by itself to close the transatlantic trade deficit. With China in Trump's crosshairs, the EU has also proposed areas for collaboration to address his concerns – without directly referring to Beijing. The EU has meanwhile threatened to hit around US$136 billion worth of American goods – and warned US tech services could be targeted as well – if talks fail. What happens next? If von der Leyen's words from Sunday are taken at face value, the aim is for talks to advance 'swiftly and decisively'. Besides renewed contacts between the negotiating teams, there are expectations Trump and von der Leyen could meet to address the trade standoff in person during the G7 leaders' summit in Canada next month. — AFP
Yahoo
6 days ago
- Business
- Yahoo
EU 'fully committed' to reaching US trade deal: commissioner
The European Union remains "fully committed" to reaching a trade agreement with the United States, the bloc's trade commissioner Maros Sefcovic said Monday following calls with top US officials. The contacts come after US President Donald Trump threatened Friday, but then postponed, to hit EU goods with a huge tariff, voicing frustration that talks with the EU were "going nowhere". Sefcovic said in a post on X that he had "good calls" with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. "We continue to stay in constant contact," he added. Trump has called for eliminating the EU's surplus in goods trade with the United States. On Friday, he threatened to impose 50-percent tariffs on the bloc from June 1, sending markets into a tailspin. The US president had already hit the bloc with multiple waves of tariffs, including 25-percent duties on cars, steel and aluminium. The European Commission has been leading talks on behalf of the 27-country bloc in search of a mutually beneficial deal with Washington -- though with little to show so far. But Trump agreed Sunday to delay the heftier levies on the EU until July 9 after a phone call with EU chief Ursula von der Leyen. While the dollar remained under pressure Monday, European markets rallied over news of the delayed tariffs. "The stock market seems to dance to Trump's tune: first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the US president," said Jochen Stanzl, chief market analyst at CMC Markets trading platform. European Central Bank President Christine Lagarde on Monday criticised Trump's "terrible language" about the European Union, in response to his comments that the bloc was formed to "screw" the United States. "It's against history. And it's certainly not the purpose of this region," she said, urging negotiations on a deal. The EU remains subject to a 10-percent tariff that Trump imposed last month on imports from nearly every country around the world. Brussels is consulting with member states on plans to impose tariffs on US goods worth nearly 100 billion euros ($113 billion) if negotiations fail to produce a deal. The US trade deficit in goods with the European Union was $236 billion in 2024. But when taking account of services, where US firms are dominant, the European Commission calculates that the overall US trade deficit stood at $57 billion. Sefcovic has said that the European Union could cover that figure by buying US liquefied natuaral gas and some farm products. cjc/giv/tw
Yahoo
6 days ago
- Business
- Yahoo
EU 'fully committed' to reaching US trade deal: commissioner
The European Union remains "fully committed" to reaching a trade agreement with the United States, the bloc's trade commissioner Maros Sefcovic said Monday following calls with top US officials. The contacts come after US President Donald Trump threatened Friday, but then postponed, to hit EU goods with a huge tariff, voicing frustration that talks with the EU were "going nowhere". Sefcovic said in a post on X that he had "good calls" with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer. "We continue to stay in constant contact," he added. Trump has called for eliminating the EU's surplus in goods trade with the United States. On Friday, he threatened to impose 50-percent tariffs on the bloc from June 1, sending markets into a tailspin. The US president had already hit the bloc with multiple waves of tariffs, including 25-percent duties on cars, steel and aluminium. The European Commission has been leading talks on behalf of the 27-country bloc in search of a mutually beneficial deal with Washington -- though with little to show so far. But Trump agreed Sunday to delay the heftier levies on the EU until July 9 after a phone call with EU chief Ursula von der Leyen. While the dollar remained under pressure Monday, European markets rallied over news of the delayed tariffs. "The stock market seems to dance to Trump's tune: first a threat, then a pullback, quickly followed by a rebound as speculative investors anticipate a concession from the US president," said Jochen Stanzl, chief market analyst at CMC Markets trading platform. European Central Bank President Christine Lagarde on Monday criticised Trump's "terrible language" about the European Union, in response to his comments that the bloc was formed to "screw" the United States. "It's against history. And it's certainly not the purpose of this region," she said, urging negotiations on a deal. The EU remains subject to a 10-percent tariff that Trump imposed last month on imports from nearly every country around the world. Brussels is consulting with member states on plans to impose tariffs on US goods worth nearly 100 billion euros ($113 billion) if negotiations fail to produce a deal. The US trade deficit in goods with the European Union was $236 billion in 2024. But when taking account of services, where US firms are dominant, the European Commission calculates that the overall US trade deficit stood at $57 billion. Sefcovic has said that the European Union could cover that figure by buying US liquefied natuaral gas and some farm products. cjc/giv/tw Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
The Guardian
6 days ago
- Business
- The Guardian
EU hopes for speedy deal to resolve US trade war after Trump delays 50% tariffs
EU leaders have expressed hopes of a speedy deal to resolve the trade war with the US after Donald Trump announced he was delaying his threatened 50% tariffs for the bloc until 9 July. The US president said on Sunday that he would pause the border tax due to be imposed on 1 June, which he had only announced two days earlier, after what he called a 'very nice call' with the head of the EU executive, Ursula von der Leyen. The European commission president persuaded Trump to delay the duties by more than one month to give the two sides more time to negotiate. Her chief spokesperson, Paula Pinho, said the pair had agreed 'to fast-track the trade negotiations and to stay in close contact'. Von der Leyen initiated the call, the EU spokesperson said, adding 'there was, it seems, a mutual intention to speak to each other'. The EU trade commissioner Maroš Šefčovič is due to speak to US commerce secretary Howard Lutnick later on Monday. The pair last spoke on Friday, after Trump's latest tariff threat. The French president, Emmanuel Macron, said on Monday that he hoped Washington and Brussels could get to the lowest tariffs possible. 'The discussions are advancing,' he told reporters during a trip to Vietnam. 'There has been a good exchange between President Trump and President Von der Leyen and I hope we can continue on this road and return to the lowest possible tariffs that will allow for fruitful exchanges.' Italy's prime minister, Giorgia Meloni, who is deemed to have one of the closest relationships to the White House among EU leaders, was reported by local media to be trying to organise a meeting between Trump and European leaders in early June. Ireland's foreign minister, Simon Harris, said there was 'no time to waste' to find a deal that is good for the US and EU economies. 'These contacts at the highest political level present the opportunity for negotiations to move forward. This is our priority. We want to see meaningful and substantive talks,' he said. Speaking on Monday, the commission confirmed that the EU's 'zero-for-zero' offer to eliminate tariffs on cars and industrial goods in transatlantic trade remained on the table. 'We believe that is a very attractive starting point for a good negotiation that could lead to benefits on both sides of the Atlantic,' trade spokesperson Olof Gill said. The commission declined to comment on the detailed talks between Trump and von der Leyen. Von der Leyen had a brief exchange with Trump at the Pope's funeral last month, her first since his return to the White House. Analysts have suggested the US president, who has repeatedly voiced hostility towards the EU and multilateral institutions, prefers to deal with national leaders. Trump initially announced a 20% levy on EU goods being sold into the US as part of his 'liberation day' tariffs unveiled on 2 April, but a week later he reduced that to 10% to allow for time for talks. However on Friday, he claimed negotiations were 'going nowhere', upped the rate to 50% and brought the deadline forward to 1 June. European markets rose on Monday on the news the EU now faces a 10% duty until 9 July, with the Stoxx Europe 600 index reversing Friday's losses. US markets were closed for a public holiday on Monday, but futures rose on the U-turn news. The flip-flopping on border taxes has left many businesses unsure of what plans to make, with many withdrawing their financial forecasts in response. Trump's 25% tariffs on steel, aluminium and cars remain in place. Šefčovič held a video conference on Monday with the chief executives of the carmakers Mercedes-Benz, Volkswagen, BMW and Stellantis to reassure them. The EU has suspended its retaliatory tariffs on €21bn (£18bn) of US agricultural and industrial goods in Republican states, but they will kick in on 14 July without a deal. The European commission is also consulting member states and European industry on a further round of retaliatory tariffs targeting €95bn (£80bn) of US goods, including bourbon, cars and industrial machinery. The commission has previously said it has not ruled out targeting US tech firms or banks, a potent but politically explosive target, as the US runs a €109bn (£91bn) trade surplus with the EU in service industries. Trump is more focused on the US trade deficit in goods, worth €198bn (£166bn) in 2024. Speaking before Trump's latest round of on-off tariff threats, a senior EU diplomat said all options for retaliation were on the table, but stressed the wish for a settlement: 'At the moment we still want to be de-escalatory and in a negotiating mood.'
