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Yahoo
a day ago
- Business
- Yahoo
Trump Announces 30% Duties on EU, Mexico
President Donald Trump revealed he isn't taking the weekend off as he released two open letters to prominent American trading partners informing them of steep new duty rates. On Saturday, the Commander in Chief took to Truth Social to post his missives to Mexican President Claudia Sheinbaum and European Commission President Ursula von der Leyen, telling both that the countries they represent will face 30-percent duties on goods across the board beginning Aug. 1. More from Sourcing Journal US Apparel Imports From China Fell to a 22-Year Low in May Amid Trade War Escalation US-Brazil Trade Battle Puts Shoe Firms in Crossfire Trump Hits Canada With 35% Tariffs In his letter to Sheinbaum, Trump reinvigorated earlier claims that Mexico has aided in the 'pouring' of drugs like fentanyl into the U.S. market and failed to control the activities of criminal cartels. 'Mexico has been helping me secure the border, BUT, what Mexico has done, is not enough,' he wrote. The colloquial style of the communication underscored Trump's familiar relationship with Sheinbaum, with whom he has been negotiating for months. As in previous letters, Trump stated that the new duty rate excludes already established sectoral tariffs, and he wrote that transshipment or retaliatory duties will result in stacked taxes to Mexican imports. The letter did not mention whether U.S.-Mexico-Canada Agreement-covered (USMCA) products would be exempt from the new tariffs, though a White House spokesperson told Politico Friday that Canada's USMCA-compliant products would remain duty-free under the trade agreement, which is due to be revisited in July 2026. The tenor of Trump's letter to von der Leyen was different, belying a frustration that the 27-member European trade bloc and the U.S. have not been able to reach a consensus about the future of their trade relationship. 'We have had years to discuss our Trading Relationship with The European Union, and have concluded that we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies and Trade Barriers,' the president wrote. He struck a more threatening tone as he addressed the European leader, declaring, 'The European Union will allow complete, open Market Access to the United States, with no Tariff being charged to us, in an attempt to reduce the large Trade Deficit.' As in previous communications with world leaders, Trump emphasized that if the trade bloc retaliates with its own duties, its tariff rate only stands to grow. The 30-percent tariff comes as a surprise given that American officials, like U.S. Trade Representative Ambassador Jamieson Greer, have been negotiating ceaselessly in recent weeks with members of the European Commission. A principle agreement presented to Trump last week involved the levying of 10-percent duties, which the trade bloc said would cause major pain to exporters. Reportedly, von der Leyen was informed of the contents of the president's letter in advance of its social media debut. 'A 30% tariff on EU exports would hurt businesses, consumers and patients on both sides of the Atlantic,' she wrote on Twitter shortly after the announcement. 'We will continue working towards an agreement by August 1. At the same time, we are ready to safeguard EU interests on the basis of proportionate countermeasures.' Sign in to access your portfolio
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Euro slips after Trump threatens 30% tariffs on EU
The euro last traded 0.12% lower at US$1.1679. (EPA Images pic) SINGAPORE : The euro fell to a three-week low early today while the Mexican peso also came under pressure after US President Donald Trump threatened to impose a 30% tariff on imports from two of the largest US trading partners beginning Aug 1. Trump on Saturday announced the latest tariffs in separate letters to European Commission president Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site. Both the EU and Mexico described the tariffs as unfair and disruptive, while the EU said it would extend its suspension of countermeasures to US tariffs until early August and continue to press for a negotiated settlement. Reaction in the currency market to Trump's latest tariff threats was largely muted in Asian trade, though the euro did slip to a roughly three-week low early in the session. The single currency later regained some ground and last traded 0.12% lower at US$1.1679. Against the Mexican peso, the dollar rose 0.25% to US18.6699. Elsewhere, however, the dollar made limited gains, with sterling down just 0.07% at US$1.3481, while the Japanese yen rose 0.1% to 147.28 per dollar. Investors have grown increasingly desensitised to Trump's slew of tariff threats, with his latest upheaval in the global trade landscape doing little to prevent US stocks from scaling record highs and offering just a slight boost to the dollar. 'It seems like financial markets have become insensitive to President Trump's tariff threats now, after so many of them in the past few months,' said Carol Kong, a currency strategist at Commonwealth Bank of Australia. 'Judging by the limited market reaction, markets might think that the latest threat from Trump is actually a manoeuvre to extract more concessions,' Kong said. In other currencies, the Australian dollar fell 0.14% to US$0.6565, while the New Zealand dollar slid 0.4% to Us$0.5984. Outside of tariff news, Trump on Sunday said that it would be a 'great thing' if Federal Reserve (Fed) chair Jerome Powell stepped down, again threatening to undermine the central bank's independence as he called for interest rates to be lowered. Traders could get a better clue on the future path for US rates when inflation data for June comes due tomorrow, where expectations are for US consumer prices to have picked up slightly last month. Markets are currently pricing in just over 50 basis points worth of Fed easing by December. In Asia, data on Monday showed China's exports regained momentum in June while imports rebounded, as exporters rushed out shipments to capitalise on a fragile tariff truce between Beijing and Washington ahead Trump's August deal deadline. Still, the figures did little to move the yuan, with the onshore unit little changed at 7.1704 per dollar. Its offshore counterpart edged up slightly to 7.1713 per dollar. Investors will be eyeing the release of Chinese gross domestic product figures tomorrow, next for greater clarity on the health of the world's second-largest economy. Growth in China is widely expected to have slowed down in the second quarter from a solid start to the year as trade tension with the US added to deflationary pressure.
France 24
a day ago
- Business
- France 24
Asian markets mostly rise on lingering trade deal optimism
The US president's outburst came after a series of announcements last week including warnings of 50 percent levies on copper and Brazilian goods, 35 percent on Canadian goods, and a possible 200 percent charge on pharmaceuticals. While observers warn the measures could deal a hefty blow to the global economy, investors are largely optimistic that governments will hammer out agreements before the White House's August 1 deadline. In announcing his latest measures on Saturday, Trump cited Mexico's role in illicit drugs flowing into the United States and a trade imbalance with the European Union. The move threw months of painstaking talks with Brussels into disarray. European Commission chief Ursula von der Leyen has insisted the bloc still wants to reach an accord -- and on Sunday delayed retaliation over separate US duties on steel and aluminium as a sign of goodwill. EU officials threatened in May to impose tariffs on US goods worth around 100 billion euros ($117 billion), including cars and planes, if talks fail. French President Emmanuel Macron backed efforts to reach an agreement that "reflects the respect that trade partners such as the European Union and the United States owe each other". But he urged the bloc to "step up the preparation of credible countermeasures" if the two sides fail to reach an agreement. Analysts also pointed out that the levies against Mexico and Canada come even after Trump agreed a trade deal with the two during his first administration. Still, Asian investors brushed off Friday's losses in New York and Europe, remaining hopeful that governments will strike deals with Washington and avoid the worst of the tariffs. Hong Kong, Shanghai, Sydney, Seoul, Singapore, Manila and Jakarta all rose, with Tokyo, Wellington and Taipei edging down. Bitcoin hit a new record high of $119,490. "It is hard to say whether the muted market response over the week is best characterised by resilience or complacency," said National Australia Bank's Taylor Nugent. "But it is difficult to price the array of headlines purportedly defining where tariffs will sit from 1 August when negotiations are ongoing." Traders are also keeping a nervous eye on the Federal Reserve as Trump continues to berate boss Jerome Powell for not cutting interest rates soon enough, saying Sunday "I hope he quits", and adding "He should quit". Reports also said the president's allies were targeting the Fed chief over his handling of an expensive renovation at the bank's headquarters, with some suggesting they were building a case to have him removed over it. However, strategists warned that such a move would bring the independence of the central bank into question and send US Treasury yields soaring and the dollar plunging. Key figures at around 0230 GMT Tokyo - Nikkei 225: DOWN 0.3 percent at 39,469.72 (break) Hong Kong - Hang Seng Index: UP 0.1 percent at 24,174.34 Shanghai - Composite: UP 0.4 percent at 3,524.93 Euro/dollar: UP at $1.1693 from $1.1690 on Thursday Pound/dollar: DOWN at $1.3496 from $1.3497 Dollar/yen: DOWN at 147.01 yen from 147.38 yen Euro/pound: UP at 86.64 pence from 86.59 pence © 2025 AFP
Japan Times
a day ago
- Business
- Japan Times
EU to engage more with other nations hit by U.S. tariffs — including Japan
The EU is preparing to step up its engagement with other countries hit by U.s. President Donald Trump's tariffs following a slew of new threats to the bloc and other American trading partners, according to people familiar with the matter. Contacts will take place with nations, including Canada and Japan, and could include the potential for coordination, said the people, who spoke on condition of anonymity to discuss private deliberations. The move comes as talks between the EU and the U.S. have dragged on and continue to be stuck on several issues, including cars and tariff rates on agriculture. Member states were briefed on the status of talks on Sunday. Earlier in the day, European Commission chief Ursula von der Leyen said the bloc will extend the suspension of trade countermeasures against the U.S. until Aug. 1 to allow for further talks. The measures had been adopted in response to tariffs imposed earlier by Trump on steel and aluminum before being paused a first time, and were due to snap back into place at midnight on Tuesday. "At the same time, we will continue to prepare further countermeasures so we are fully prepared,' von der Leyen told reporters in Brussels on Sunday, while reiterating the EU's preference for a "negotiated solution.' The current list of countermeasures would hit about €21 billion ($24.5 billion) of U.S. goods, while the EU has another one ready of about €72 billion, as well as some export controls, that will be presented to member states as early as Monday, said the people. Von der Leyen also said that the EU's anti-coercion instrument (ACI), the bloc's most powerful trade tool, won't be used at this point. "The ACI is created for extraordinary situations,' she said. "We are not there yet.' In a social media post responding to Trump's announcement, French President Emmanuel Macron called for the speeding-up of preparations for credible countermeasures, including the anti-coercion tool, if no agreement is reached by Aug. 1. German Chancellor Friedrich Merz on Sunday evening said 30% tariffs would hit exporters in Europe's largest economy "to the core' if a negotiated solution in the trade conflict can't be found. Merz said he was coordinating closely with other leaders to ensure tariffs of such magnitude don't come into force. "That requires two things: unity in the European Union and good lines of communication with the American president,' the conservative leader told ARD in an interview. Trump has sent letters to a slew of trading partners, tweaking tariff levels proposed in April and inviting them to further talks. In a letter published Saturday, the U.S. president warned the EU it would face a 30% rate from next month if better terms can't be negotiated. The EU had sought to conclude a tentative deal with the U.S. to stave off higher tariffs, but Trump's letter punctured recent optimism in Brussels over the prospects for an 11th-hour agreement. Other countries like Mexico, which has also been negotiating with the U.S., were surprised to receive similar letters. The EU is seeking a tariff no higher than 10% on agricultural exports. An offset mechanism that some carmakers had pushed as a way to grant tariff relief to companies in return for investments in the U.S. isn't under consideration for now, amid worries from the EU that it could shift production across the Atlantic. The bloc's negotiators are focusing talks on car tariffs instead, according to people familiar with the matter, who spoke on condition of anonymity to discuss private deliberations. Negotiations between the U.S. and EU are expected to continue this week, the people said. The U.S. and the EU have been discussing an initial deal that would see most EU exports hit with a 10% tariff, with limited exemptions for some industries such as aviation and medical devices. The EU has also been arguing for lower rates on spirits and wines, as well as mitigating through quotas the 50% tariffs that Trump has imposed on steel and aluminum. The U.S. has proposed a 17% tariff on agricultural products. Any initial agreement would also cover nontariff barriers, economic security cooperation and strategic purchases. In addition to a universal levy now due in August, Trump has also introduced 25% levies on cars and parts, as well as double that on metals. The president is working to introduce sectoral levies in other areas, including pharmaceuticals and semiconductors, and recently announced a 50% duty on copper. Any deal at this stage wouldn't automatically shield the EU from those sectoral measures, but the bloc continues to seek preferential treatment in the potentially affected industries.
Telegraph
2 days ago
- Business
- Telegraph
EU backs down from trade retaliation as Trump threatens 30pc tariffs
Brussels has backed down at the eleventh hour from plans to impose €21bn (£18bn) retaliatory tariffs on the US after Donald Trump threatened to punish the bloc with 30pc levies. The EU's tariffs on US steel and aluminium exports were due to come into effect from midnight on Monday, but Ursula von der Leyen, the European Commission president, said these will now be put on hold until early August. The reprieve will give negotiators in Brussels more time as they battle to secure a trade agreement with the US. The import tariffs threatened by the US president on Saturday night are three times higher than those imposed on Britain. Ms Von der Leyen said: 'We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now.' Her comments represent a marked shift in tone from the EU, which has been attempting to play hardball with the US president. Writing on Truth Social on Saturday, Mr Trump warned the EU and Mexico they faced higher tariffs from August 1. His announcement came after weeks of negotiations between US officials and major trading partners. In an open letter to Ms Von der Leyen, Mr Trump wrote: 'We have had years to discuss our trading relationship with the European Union, and we have concluded we must move away from these long-term, large, and persistent trade deficits, engendered by your tariff, and non-tariff policies, and trade barriers. 'Our relationship has been, unfortunately, far from reciprocal ... This deficit is a major threat to our economy and, indeed, our national security.' European divide Britain was the first country to independently strike a deal with Washington in May, although most exports are subject to a 10pc tariff. Ms Von der Leyen said the bloc would not implement its list of counter-tariffs and instead stated 'the time is for negotiations'. She also announced a 'political agreement' with Indonesia to conclude with a free trade deal in September. 'When economic uncertainty meets geopolitical volatility, partners like us must come closer together,' she told Indonesian President Prabowo Subianto, in a thinly veiled swipe at the US. Leaders across the EU remain divided on whether the bloc should continue to negotiate with the aim of securing an improved deal or opt for a trade framework. Lars Klingbeil, Germany's finance minister, said that 'serious and solution-oriented negotiations' with the Trump administration were still necessary. 'Our hand remains outstretched but we won't accept just anything,' Mr Klingbeil told the Sueddeutsche Zeitung newspaper. He warned that the EU would have to take 'decisive counter measures' if an agreement with the US could not be reached. Simon Harris, Ireland's foreign affairs minister, told RTE: 'We prefer to do our negotiations around the table. He tends to do his negotiations on Truth Social and he can do it however he wishes … we're continuing to intensively engage.' Emmanuel Macron, the French president, called on the European Commission to 'assert the Union's determination to defend European interests resolutely'. He added that retaliation from the bloc might need to include anti-coercion measures. However, Matteo Salvini, Italy's deputy prime minister, hit out at the EU's negotiation strategy. 'Trump has no reason to attack our country but once again we are paying the price for a German-led Europe,' he said.
