Latest news with #pre-Trump2.0
Qatar Tribune
28-07-2025
- Business
- Qatar Tribune
US, EU strike trade deal: 15% tariff averts full-scale trade war
Agencies The US struck a framework trade agreement with the European Union on Sunday, imposing a 15 percent import tariff on most EU goodshalf the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. US President Donald Trump and European Commission President Ursula von der Leyen announced the deal at Trump's luxury golf course in western Scotland after an hour-long meeting that pushed the hard-fought deal over the line, following months of negotiations. 'I think this is the biggest deal ever made,' Trump told reporters, lauding EU plans to invest some $600 billion in the United States and dramatically increase its purchases of US energy and military equipment. In the end, Europe found it lacked the leverage to pull Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the US's favor. As such, Sunday's agreement on a blanket 15 percent tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. The cold shower is all the more bracing given that the EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30 percent 'reciprocal' tariff which Trump threatened to invoke in a few days. While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9 percent economic growth this year compared to just over 1 percent in a trade tension-free environment. But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on US tariffs averaging out at around 1.5 percent. Even when Britain agreed a baseline tariff of 10 percent with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a 'zero-for-zero' tariff pact. It took a few weeks of fruitless talks with their US counterparts for the Europeans to accept that 10 percent was the best they could get and a few weeks more to take the same 15 percent baseline which the United States agreed with Japan last week. 'The EU does not have more leverage than the US, and the Trump administration is not rushing things,' said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15 percent level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB. 'We were dealt a bad hand. This deal is the best possible play under the circumstances,' said one EU diplomat. 'Recent months have clearly shown how damaging uncertainty in global trade is for European businesses.' That imbalanceor what the trade negotiators have been calling 'asymmetry' - is manifest in the final deal. Not only is it expected the EU will call off retaliation and remain broadly open to US goods on more favorable terms, but it has also pledged $600 billion of investment in the United States over the course of Trump's term in office. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totaled some 93 billion euros - less than half its US goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the US digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud services. It remains to be seen whether the lop-sided deal will prompt European leaders to push ahead with the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an 'existential threat' for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. 'Let's look on the past months as a wake-up call,' said BGA President Dirk Jandura. 'Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world.'
Time of India
28-07-2025
- Business
- Time of India
Out-gunned Europe accepts least-worst US trade deal
In the end, Europe found it lacked the leverage to pull Donald Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15% tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. Explore courses from Top Institutes in Please select course: Select a Course Category Operations Management Finance CXO Management Data Science Others Cybersecurity others MBA PGDM Public Policy Data Science Product Management Degree Healthcare Data Analytics Leadership Project Management Digital Marketing Design Thinking Artificial Intelligence Skills you'll gain: Quality Management & Lean Six Sigma Analytical Tools Supply Chain Management & Strategies Service Operations Management Duration: 10 Months IIM Lucknow IIML Executive Programme in Strategic Operations Management & Supply Chain Analytics Starts on Jan 27, 2024 Get Details The cold shower is all the more bracing given that the EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Embark on a 2-night Chennai–high seas–Chennai adventure. Cordelia Cruises Book Now Undo For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few days. While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9% economic growth this year compared to just over 1% in a trade tension-free environment. Live Events But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%. Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff pact. It took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week. "The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB . "We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses." NOW WHAT? That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final deal. Not only is it expected the EU will call off retaliation and remain broadly open to U.S. goods on more favourable terms, but it has also pledged $600 billion of investment in the United States over the course of Trump's term in office. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud services. For now, the deal does not shift the dial significantly on the already modest near-term expectations for the European economy, which at least is seen buoyed by increased German spending on defence and infrastructure in the coming years. "We therefore still expect a modest slowing in (euro area) growth in 2H25," said Greg Fuzesi, euro area economist at JP Morgan, who also expected the ECB to make one further rate cut on top of 200 basis points of easing over the past year. It remains to be seen whether the lop-sided deal will prompt European leaders to push ahead with the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. "Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world."
CNBC
28-07-2025
- Business
- CNBC
U.S. trade deal offers initial relief but leaves Europe on the backfoot
After an initial sigh of relief at the U.S. and European Union avoiding further escalation by striking a trade agreement, concerns have grown that the framework deal is "unbalanced" and leaves Europe on the backfoot. The two trading partners on Sunday announced an agreement that includes a 15% tariff rate on most EU goods to the U.S. Some goods like aircraft components and certain chemicals are not set to be hit by tariffs, while autos will see duties reduced to the 15% rate. The agreement also includes provisions for the EU purchasing U.S. energy and increasing its investments in the country. The agreement halves the 30% tariff rate U.S. President Donald Trump had threatened the EU with and avoids any further escalation through for example countermeasures. Yet analysts and economists remain cautious as to the impact on both sides as negotiations are still set to take place. "It's a climb down from a much worse place," Cailin Birch, global economist at The Economist Intelligence Unit, told CNBC's "Europe Early Edition" on Monday. However, she noted, "a 15% tariff is still a big escalation from where we were pre-Trump 2.0." Birch also pointed out that a lot of uncertainty remains, with details about the steel and pharmaceutical sector still being unclear. European leaders struck similar notes overnight, with German Chancellor Friedrich Merz saying that while the EU was able to protect its core interests, he would have welcomed further easing of transatlantic trade. France's minister for Europe, Benjamin Haddad, meanwhile said in a Google-translated social media post that while the deal would bring "temporary stability" to some sectors, it is "unbalanced" overall. Holger Schmieding, chief economist at Berenberg, warned that while the "crippling uncertainty" was over, the damage for Europe is more frontloaded in comparison to the long-term impact on the U.S. "The deal is asymmetric. The US gets away with a substantial increase in its tariffs on imports from the EU and has secured further EU concessions to boot. In his apparent zero-sum mentality, Trump can claim that as a "win" for him," he said. As it will take some time for U.S. consumers to feel the impact of tariffs, Trump's supporters may not immediately realize they are being hurt by the president's policies, Schmieding explained. This may encourage Trump to continue to pursue economic policies that are "bad" for the U.S., he added. The Economist Intelligence Unit's Birch meanwhile pointed out that the U.S. also did not get everything it may have wanted from the deal. "Both sides are, are kind of set back a bit from this deal," she said. "The U.S. didn't make any headway on a lot of issues that have in recent history been critical to their trade approach to the EU. So agricultural standards, the tech industry regulating standard that has been a big bugbear, there was no real mention of those standards whatsoever," Birch explained, acknowledging that the deal is not yet done.
Economic Times
27-07-2025
- Business
- Economic Times
U.S EU Trade deal: Who wins after tariff agreement - Donald Trump or Europe?
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads FAQs U.S EU Trade deal agreement has finally been chalked. In the end, Europe found it lacked the leverage to pull Donald Trump 's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15 per cent tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9 per cent economic growth this year compared to just over 1% in a trade tension-free this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%.Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week."The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB ."We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses."That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final only is it expected that the EU will now call off any retaliation and remain open to U.S. goods on existing terms, but it has also pledged $600 billion of investment in the United States. The time-frame for that remains undefined, as do other details of the accord for talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud remains to be seen whether this will encourage European leaders to accelerate the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner."Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world."A1. President of USA is Donald Trump.A2. US is levying 15 per cent tariffs on Europe.
Time of India
27-07-2025
- Business
- Time of India
U.S EU Trade deal: Who wins after tariff agreement - Donald Trump or Europe?
U.S EU Trade deal agreement has finally been chalked. In the end, Europe found it lacked the leverage to pull Donald Trump 's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15 per cent tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. U.S EU Trade Deal Face-saver for Europe? Explore courses from Top Institutes in Please select course: Select a Course Category Finance Technology others Data Analytics Data Science PGDM MCA healthcare MBA Public Policy Product Management Leadership Healthcare Project Management Others Digital Marketing Design Thinking CXO Operations Management Management Cybersecurity Data Science Artificial Intelligence Degree Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few days. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Nazlat Alsman: Unsold Sofas Prices May Surprise You (Prices May Surprise You) Sofas | Search Ads Search Now Undo While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9 per cent economic growth this year compared to just over 1% in a trade tension-free environment. But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%. Live Events Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff pact. It took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week. "The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia to Swedish steelmaker SSAB . "We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses." Big Win for Donald Trump? That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final deal. Not only is it expected that the EU will now call off any retaliation and remain open to U.S. goods on existing terms, but it has also pledged $600 billion of investment in the United States. The time-frame for that remains undefined, as do other details of the accord for now. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix to Uber to Microsoft cloud services. It remains to be seen whether this will encourage European leaders to accelerate the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. "Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world." FAQs Q1. Who is President of USA? A1. President of USA is Donald Trump. Q2. How much tariffs USA is levying on Europe? A2. US is levying 15 per cent tariffs on Europe.
