Latest news with #PhilipBlenkinsop
Yahoo
2 days ago
- Business
- Yahoo
Angry France slams US trade pact 'submission' as EU peers breathe sigh of relief
By Philip Blenkinsop and Michel Rose BRUSSELS (Reuters) -France denounced the trade agreement between the European Union and the U.S. as a "submission" on Monday though other EU states largely backed a deal they acknowledged was lopsided but which averts an economically damaging trade war with Washington. The framework deal, announced on Sunday between two economies accounting for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods from next month, but offers some protection for critical industries like cars and pharmaceuticals. That is half the rate Washington had threatened, though much more than Europeans hoped for. U.S. President Donald Trump, who has sought to leverage tariff threats to reshape global trade since returning to the White House this year, feted the accord on Sunday during a trip to Scotland, calling it "the biggest deal ever made". But France, Europe's second largest economy, poured scorn on the agreement. "It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission," Prime Minister Francois Bayrou wrote on X. French President Emmanuel Macron made no public comment. While the mood among other European governments was decidedly sombre, most agreed that the failure to strike a deal would have been disastrous. "This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard," said German Chancellor Friedrich Merz, who heads the 27-nation EU bloc's largest economy. Speaking to journalists on Monday, the top trade official for the European Commission, which negotiates trade deals for the EU, said allowing the 30% tariffs to be imposed would have been "much, much worse". "This is clearly the best deal we could get under very difficult circumstances," EU Trade Commissioner Maros Sefcovic said. Several EU countries acknowledged that the deal establishes some certainty with Europe's biggest trading partner following months of turmoil, with Sweden, for example, calling it the "least bad alternative" and Spain backing it, albeit "without enthusiasm." Any final deal is likely to need approval from EU capitals. STILL WORK TO DO Since managing trade falls under the responsibilities of the European Commission, unhappiness with the outcome of the months-long negotiations from countries like France will not scupper the framework agreement. But there is still work to be done. Many of the specifics of the agreement were not immediately known, but EU officials said they would be clarified in a joint statement that should be finalised by August 1. Further negotiations over the coming weeks will be held to reach a full-fledged deal. Even Germany said more work was necessary, including with regards to the steel sector. Trump said the deal, including an investment pledge topping the deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. Japan's package will consist of equity, loans and guarantees from state-run agencies of up to $550 billion to be invested at Trump's discretion, Tokyo says. EU officials, in contrast, said the EU's $600 billion investment pledge is based on the combined intended private-sector investments expressed by European companies. The deal will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. MORE CLARITY, BUT A CHALLENGE European stocks opened up on Monday, with the STOXX 600 touching a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. Still, European companies were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices edged higher on Monday. (Additional reporting by Sudip Kar-Gupta, Jan Strupczewski, Julia Payne, Adam Jourdan; Writing by Ingrid Melander; Editing by Joe Bavier) 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
RNZ News
7 days 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
Yahoo
21-07-2025
- Business
- Yahoo
EU to ramp up retaliation plans as US tariff deal prospects dim
By Philip Blenkinsop BRUSSELS (Reuters) -The European Union is exploring a broader set of possible counter-measures against the United States as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats. An increasing number of EU members, including Germany, are now considering using wide-ranging "anti-coercion" measures which would let the bloc target U.S. services and other sectors in the absence of a deal, diplomats say. The European Commission, which negotiates trade agreements on behalf of the 27-member bloc, had appeared on course for a agreement in which the EU would still have faced a 10% U.S. tariff on most of its exports, with some concessions. Such hopes now seem dashed after President Donald Trump's threat to impose a 30% tariff by August 1, and following talks between EU Trade Commissioner Maros Sefcovic and U.S. counterparts in Washington last week. Sefcovic, who has said a 30% tariff would "practically prohibit" transatlantic trade, delivered a sober report on the current state of play to EU envoys on Friday, diplomats told Reuters. U.S. counterparts had come up with diverging solutions during his meetings, including a baseline rate that could be well above 10%, the EU diplomats added. "Each interlocutor seemed to have different ideas. No one can tell (Sefcovic) what would actually fly with Trump," one diplomat said. Prospects of easing or removing 50% U.S. tariffs on steel and aluminium and 25% on cars and car parts appear limited. 'NUCLEAR OPTION' Washington has also rejected the EU's demand for a "standstill" arrangement, whereby no further tariffs would be imposed after a deal is struck. The rationale, according to diplomats, is that Trump's hands cannot be tied on national security, the basis of Section 232 trade investigations into pharmaceuticals, semiconductors and timber. Accordingly, the mood has pivoted among EU countries, EU diplomats say, and they are more ready to react, even though a negotiated solution is their preferred option. The EU has one package of tariffs on 21 billion euros ($24.5 billion) of U.S. goods that is currently suspended until August 6. The bloc must still decide on a further set of countermeasures on 72 billion euros of U.S. exports. Discussions have also increased on using the EU's wide-ranging "anti-coercion" instrument (ACI) that allows the bloc to retaliate against third countries that put economic pressure on member states to change their policies. Brought in more with China in mind, it would allow the bloc to target U.S. services, limit U.S. companies' access to public procurement or financial services markets or restrict U.S. investment. France has consistently advocated using the ACI, but others have baulked at what some see as a nuclear option. Trump has warned he will retaliate if other countries take action against the United States. European Commission President Ursula von der Leyen said a week ago that the ACI was created for extraordinary situations, adding: "We are not there yet." The Commission would need a qualified majority of 15 countries making up 65% of the EU population to invoke it. It would not do so unless it was confident of passing it, but there are now growing signs of support building, with Germany among the countries saying it should be considered, EU diplomats say. ($1 = 0.8590 euros) Sign in to access your portfolio
Yahoo
04-07-2025
- Business
- Yahoo
US trade deal eludes Europe days out from Trump's deadline, sources say
By Philip Blenkinsop and Julia Payne BRUSSELS (Reuters) -European Union negotiators have failed so far to achieve a breakthrough in trade negotiations with the Trump administration and may now seek to extend the status quo to avoid tariff hikes, five EU diplomats briefed on the talks said on Friday. The EU had already dropped hopes of a locking in a comprehensive trade agreement ahead of Trump's July 9 deadline, but following the Washington talks it was not clear if it would even secure a lighter agreement in principle. The Commission told EU envoys on Friday afternoon that it believed the United States was willing to "pause" the current tariffs in place for partners with which it reached an initial agreement, with possible tariff relief later. Without a preliminary agreement, broad U.S. tariffs on most imports would rise from their current 10% to the rate set out by Trump on April 2. In the EU's case that would be 20%. Two of the EU diplomats who spoke to Reuters said the Commission appeared to be pushing more for the first option, to extend the status quo, and then seek to negotiate further. U.S. Treasury Scott Bessent said on Thursday negotiations were set to continue into the weekend. The EU currently faces 50% tariffs on steel and aluminium exports to the United States, 25% tariffs on cars and car parts and the 10% levy on most other products. The EU has agreed a package of 21 billion euros ($24.7 billion) of countermeasures, but not put them into force. The bloc is also looking into a second package, originally envisaged at 95 billion euros. That has now been whittled down to 72 billion euros after lobbying from various EU members, two of the diplomats said. ($1 = 0.8490 euros) 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
Hindustan Times
26-06-2025
- Business
- Hindustan Times
EU leaders meet to decide on whether to back quick US trade deal or seek better terms
By Philip Blenkinsop and Jan Strupczewski EU leaders meet to decide on whether to back quick US trade deal or seek better terms BRUSSELS -European Union leaders are to tell the European Commission on Thursday whether they want to reach a quick trade agreement with the United States on terms that favour Washington or keep fighting for a better deal. A quick deal seems to be the preferred option for most, officials and diplomats said, as the EU can then seek to address the unfavourable bias with some rebalancing measures of its own. "I support the Commission, I support the President of the European Commission in her endeavours to make progress on competitiveness. I also support the European Commission in all its endeavours to reach a trade agreement with the USA quickly," German Chancellor Friedrich Merz said. "I want us to get Mercosur off the ground and conclude further trade agreements. Europe is facing decisive weeks and months," he said. The Commission, which negotiates trade agreements on behalf of the EU, will ask leaders of the EU's 27 members meeting in Brussels how they want to respond to President Donald Trump's July 9 deadline for a deal, now less than two weeks away. The bloc has said it is striving for a mutually beneficial agreement, but as Washington looks set to stick to its 10% across-the board tariffs on most EU goods and threatening higher rates with prolonged talks, EU diplomats said a growing number of EU countries were now favouring a quick resolution. "A trade war makes both sides of the Atlantic poorer and is just stupid. So I support the approach of the Commission president, who always kept calm and has negotiated for a result," said Belgian Prime Minister Bart De Wever. "If that were to end in one-sided and unfair tariffs then we have to take proportionate and very targeted countermeasures." The bloc is already facing U.S. import tariffs of 50% on its steel and aluminium, 25% for cars and car parts, along with a 10% tariff on most other EU goods, which Trump has threatened could rise to 50% without an agreement. The United States' only completed trade deal to date is with Britain, with the broad 10% tariff still in place. U.S. officials say it will not go lower for any trading partner. Some 23 of the leaders will come to Brussels straight from the NATO summit in the Hague. Few will want to follow accord there with an economic war. "There is a group of EU countries that want to protect companies by seemingly accepting something they have gotten used to – a 10% baseline," one EU diplomat said. REBALANCING MEASURES One question EU leaders face is whether it should respond with its own measures to such a baseline tariff. The European Union has agreed, but not imposed, tariffs on 21 billion euros of U.S. goods and is debating a further package of tariffs on up to 95 billion euros of U.S. imports. Some EU countries favour watering it down. Among the EU rebalancing options is a tax on digital advertising, which would hit U.S. giants like Alphabet Inc's Google, Meta, Apple, X or Microsoft and eat into the trade surplus in services the U.S. has with the EU. The bloc has a trade surplus with the U.S. in goods. The Commission has proposed an EU-U.S. deal to cut respective tariffs on industrial goods to zero, along with potential further EU purchases of liquefied natural gas and soybeans. Washington has shown little obvious interest, preferring to highlight items it considers as barriers, such as EU value-added tax, environmental standards and rules on online platforms, on which the EU does not want to move. On the sidelines of the summit, EU leaders will also seek to allay the concerns of Slovakia and Hungary over ending their access to Russian gas as foreseen by the EU's plan to phase out all Russian gas imports by the end of 2027. EU diplomats said EU leaders' assurances over gas should allow the two countries to back the EU's 18th package of sanctions against Russia, which they are now blocking. Before the start of the summit however, Slovakia's Prime Minister Robert Fico said he would demand a delay in voting for the sanctions until Slovak concerns were addressed. This article was generated from an automated news agency feed without modifications to text.
