Latest news with #transatlanticrelations
Bloomberg
29-07-2025
- Business
- Bloomberg
US, EU Race to Finalize New Trade Agreement
The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations. The euro fell to a five-week low of $1.1527 on Tuesday, having fallen about 1.8% since the trade deal was announced. That's after the common currency had surged to a near three-year high last week on the prospect of an agreement with the US. Meanwhile as the US continues trade talks with China in Stockholm, President Donald Trump said reports of him seeking a summit with China's Xi Jinping are 'not correct'. Today's guests: Ursula Marchioni, BlackRock EMEA Head of Investment and Portfolio Solutions, Patrick Hummel, UBS Head of European Autos Research, Vivian Lin Thurston, William Blair Investment Management Portfolio Manager, Anke Reingen, RBC Capital Markets Co-Head of Global Financials Research. (Source: Bloomberg)
Yahoo
29-07-2025
- Business
- Yahoo
EU, US Rush to Clinch Final Details and Lock In Trade Deal
(Bloomberg) -- The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy The euro fell to a five-week low of $1.1527 on Tuesday, having fallen about 1.8% since the trade deal was announced. That's after the common currency had surged to a near three-year high last week on the prospect of an agreement with the US. The EU over the weekend agreed to accept a 15% tariff on most of its exports, while the bloc's average tariff rate on American goods should drop below 1% once the deal goes into effect. Brussels also said it would purchase $750 billion in American energy products and invest $600 billion more in the US. 'The free trade principles that have underpinned transatlantic prosperity since the end of World War II are being systematically dismantled,' Karin Karlsbro, a Swedish member of the European Parliament's trade committee, said in a statement. 'The risk of European economic and political marginalization grows with each concession made.' German Chancellor Friedrich Merz, who initially cheered the deal as having 'succeeded' in avoiding a trade conflict and enabling the EU to safeguard its interests, seemed to sour on the accord. 'The German economy will suffer significant damage from these tariffs,' he told reporters Monday. 'I'm pretty sure this won't be limited to Germany and Europe. We'll also see the consequences of this trade policy in America.' French Prime Minister Francois Bayrou was also critical, saying on social media: 'It's a dark day when an alliance of free peoples, united to affirm their values and defend their interests, opts for submission.' The EU and US will seek to clinch a non-legally binding joint statement by Aug. 1 that will expand on some of the elements negotiated over the weekend, according to a senior EU official. Once the statement is finalized, the US will begin lowering its tariffs on specific sectors, in particular for cars and car parts, which currently face a 27.5% levy. The two sides will then start work on a legally binding text, said the official, who spoke on the condition of anonymity. The content and legal form of this document aren't clear, but it would require the support of at least a qualified majority of EU countries and possibly the European Parliament. The EU official said that reaching a consensus on the legal text could take a long time; many trade accords require years of negotiations. The EU won't start implementing the terms it agreed to — such as lowering tariffs on US products — until after this legal text is approved, according to the official. 'The agreement removes some tail downside risks but is short on details, which will need to be thrashed out over the coming weeks, risking new volatility,' Oliver Rakau — chief Germany economist at Oxford Economics — said in a note. 'Uncertainty is likely to remain elevated.' European Commission President Ursula von der Leyen said that the US agreed to bilaterally lower tariffs to zero on certain strategic products, including aircraft and component parts, certain generics, semiconductor equipment and some agricultural products. One potential sticking point in negotiations will be EU metal exports, which currently have a 50% tariff rate. The EU is pushing for a quota on metals that would lower the levies on a certain volume of goods, while anything above that would pay the 50% rate, according to the EU official. 'Uncertainty remains regarding all the details concerning the European steel industry,' said Axel Eggert, director-general of the European Steel Association. EU ambassadors will meet on Tuesday to discuss the trade situation. Discussions are ongoing on whether some goods, such as wine and spirits, would be exempt from the 15% tariff rate, the EU official said. Another possible issue is the EU's promise to purchase $750 billion of American energy imports over three years, an integral part to securing the deal. Yet it's hard to see how the EU attains such ambitious flows over such a short time frame. Total energy imports from the US accounted for less than $80 billion last year, far short of the promise made by von der Leyen to Trump. Total US energy exports were just over $330 billion in 2024. The EU's pledge to invest an additional $600 billion in the US is just as problematic. The investment is just an aggregate of pledges by companies and not a binding target as the European Commission can't commit to such goal, said the EU official. The uncertainty from the trade war has weighed on EU economic forecasts, with the commission in May cutting its GDP growth expectations for the year to 1.1%. It projected a 1.5% rate in November. Despite the critics, the commission, which handles trade matters for the EU, insists this was the only course of action. 'This is clearly the best deal we could get under very difficult circumstances,' Maros Sefcovic, the EU's trade chief, told reporters on Monday. --With assistance from Michal Kubala, Arne Delfs, John Ainger, David Goodman and Julien Ponthus. (Updates with currency move in the second paragraph.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. 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
The Guardian
29-07-2025
- Business
- The Guardian
As Trump's tariff regime becomes clear, Americans may start to foot the bill
Burying the hatchet with Brussels, Donald Trump – flanked by the leader of the European Commission – hailed a bold new era of transatlantic relations, an ambitious economic pact, and declared: 'This was a very big day for free and fair trade.' That was seven years ago. And then on Sunday, the US president – flanked by a different leader of the European Commission – hailed another new era of transatlantic relations, another economic pact and declared: 'I think it's the biggest deal ever made.' Trumpian hyperbole can typically be relied upon as long as he's in the room, at the lectern or typing into Truth Social. What matters after that is the underlying detail – and we have very little, beyond a handful of big numbers designed to grab headlines. What we do know, as a result of this deal, is that European exports to the US will face a blanket 15% tariff: a tax expected, at least in part, to be passed along to US consumers. The price of key products shipped from the EU, from cars to medicine and wine, is about to come into sharp focus. This pact is not unique. Trump's agreement with Japan also hits Japanese exports to the US with a 15% tariff. Most British exports to the US face a 10% tariff under his deal with the UK. A string of countries without such accords, including Brazil, Canada and South Korea, are set to face even higher US tariffs from Friday. The Trump administration currently has a blanket 10% levy in place for US imports, although the president threatened to raise this to 'somewhere in the 15 to 20% range' earlier this week. Ignore, for a moment, the chaos and the noise. Put to one side the unpredictable stewardship of the world's largest economy, and its ties with the world. And forget the many U-turns, pauses and reprieves which have followed bold pronouncements, again and again and again. If you, like many businesses in the US and across the world, are struggling to keep up, take a step back and look at a single number. Since Trump took office, the average effective US tariff rate on all goods from overseas has soared to its highest level in almost a century: 18.2%, according to the Budget Lab at Yale. Trump argues this extraordinary jump in tariffs will bring in trillions of dollars to the US federal government. On his watch, tariffs have so far brought in tens of billions of dollars more in revenue this year than at the same point in 2024. But who picks up the bill? The president and his allies have position this fundamental shift in economic policy as a historic move away from taxing Americans toward taxing the world. But in reality, everyone pays. Tariffs are typically paid at the border, by the importer of the product affected. If the tariff on that product suddenly goes from 0% to 15%, the importer – as you'd expected – will try to pass it on. Every company at every stage of the supply chain will quite literally try to pass the buck, as much as possible. And the very end of the chain, economists expect prices will ultimately rise for consumers. The Budget Lab at Yale estimates the short-term impact of Trump's tariffs so far is a 1.8% rise in US prices: equivalent to an average income loss of $2,400 per US household. Sign up to This Week in Trumpland A deep dive into the policies, controversies and oddities surrounding the Trump administration after newsletter promotion The best public interest journalism relies on first-hand accounts from people in the know. If you have something to share on this subject you can contact us confidentially using the following methods. Secure Messaging in the Guardian app The Guardian app has a tool to send tips about stories. Messages are end to end encrypted and concealed within the routine activity that every Guardian mobile app performs. This prevents an observer from knowing that you are communicating with us at all, let alone what is being said. If you don't already have the Guardian app, download it (iOS/Android) and go to the menu. Select 'Secure Messaging'. SecureDrop, instant messengers, email, telephone and post See our guide at for alternative methods and the pros and cons of each. Big firms that have so far done their best to hold prices steady amid the blizzard of tariff uncertainty are now starting to warn of increases. Inflation, which Trump claims is very low in the US, picked up in June. The president appeared to reluctantly reckon with the reality that Americans may start to foot the bill for his tariffs before setting off for Scotland late last week. Asked about the prospect of using revenue from tariffs to distribute 'rebate' checks to US consumers, Trump said: 'We're thinking about that, actually … We're thinking about a rebate, because we have so much money coming in, from tariffs, that a little rebate for people of a certain income level might be very nice.' Given what inflation did to Joe Biden's electoral fortunes, and Trump's keen eye for populist policies, it's hardly a stretch to imagine those cheques – signed by Donald J Trump – landing in bank accounts in time for the midterm elections next November. And such a move would, indeed, be very nice. Especially as it appears increasingly likely that, after this week, Americans will probably be paying more for almost everything.
Yahoo
29-07-2025
- Business
- Yahoo
EU, US Rush to Clinch Final Details and Lock In Trade Deal
(Bloomberg) -- The European Union dodged an imminent trade war with the US this week, but markets and a growing chorus of critics have dispelled early hopes that the deal will bring a sense of stability back to transatlantic relations. Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy The euro fell to a five-week low of $1.1527 on Tuesday, having fallen about 1.8% since the trade deal was announced. That's after the common currency had surged to a near three-year high last week on the prospect of an agreement with the US. The EU over the weekend agreed to accept a 15% tariff on most of its exports, while the bloc's average tariff rate on American goods should drop below 1% once the deal goes into effect. Brussels also said it would purchase $750 billion in American energy products and invest $600 billion more in the US. 'The free trade principles that have underpinned transatlantic prosperity since the end of World War II are being systematically dismantled,' Karin Karlsbro, a Swedish member of the European Parliament's trade committee, said in a statement. 'The risk of European economic and political marginalization grows with each concession made.' German Chancellor Friedrich Merz, who initially cheered the deal as having 'succeeded' in avoiding a trade conflict and enabling the EU to safeguard its interests, seemed to sour on the accord. 'The German economy will suffer significant damage from these tariffs,' he told reporters Monday. 'I'm pretty sure this won't be limited to Germany and Europe. We'll also see the consequences of this trade policy in America.' French Prime Minister Francois Bayrou was also critical, saying on social media: 'It's a dark day when an alliance of free peoples, united to affirm their values and defend their interests, opts for submission.' The EU and US will seek to clinch a non-legally binding joint statement by Aug. 1 that will expand on some of the elements negotiated over the weekend, according to a senior EU official. Once the statement is finalized, the US will begin lowering its tariffs on specific sectors, in particular for cars and car parts, which currently face a 27.5% levy. The two sides will then start work on a legally binding text, said the official, who spoke on the condition of anonymity. The content and legal form of this document aren't clear, but it would require the support of at least a qualified majority of EU countries and possibly the European Parliament. The EU official said that reaching a consensus on the legal text could take a long time; many trade accords require years of negotiations. The EU won't start implementing the terms it agreed to — such as lowering tariffs on US products — until after this legal text is approved, according to the official. 'The agreement removes some tail downside risks but is short on details, which will need to be thrashed out over the coming weeks, risking new volatility,' Oliver Rakau — chief Germany economist at Oxford Economics — said in a note. 'Uncertainty is likely to remain elevated.' European Commission President Ursula von der Leyen said that the US agreed to bilaterally lower tariffs to zero on certain strategic products, including aircraft and component parts, certain generics, semiconductor equipment and some agricultural products. One potential sticking point in negotiations will be EU metal exports, which currently have a 50% tariff rate. The EU is pushing for a quota on metals that would lower the levies on a certain volume of goods, while anything above that would pay the 50% rate, according to the EU official. 'Uncertainty remains regarding all the details concerning the European steel industry,' said Axel Eggert, director-general of the European Steel Association. EU ambassadors will meet on Tuesday to discuss the trade situation. Discussions are ongoing on whether some goods, such as wine and spirits, would be exempt from the 15% tariff rate, the EU official said. Another possible issue is the EU's promise to purchase $750 billion of American energy imports over three years, an integral part to securing the deal. Yet it's hard to see how the EU attains such ambitious flows over such a short time frame. Total energy imports from the US accounted for less than $80 billion last year, far short of the promise made by von der Leyen to Trump. Total US energy exports were just over $330 billion in 2024. The EU's pledge to invest an additional $600 billion in the US is just as problematic. The investment is just an aggregate of pledges by companies and not a binding target as the European Commission can't commit to such goal, said the EU official. The uncertainty from the trade war has weighed on EU economic forecasts, with the commission in May cutting its GDP growth expectations for the year to 1.1%. It projected a 1.5% rate in November. Despite the critics, the commission, which handles trade matters for the EU, insists this was the only course of action. 'This is clearly the best deal we could get under very difficult circumstances,' Maros Sefcovic, the EU's trade chief, told reporters on Monday. --With assistance from Michal Kubala, Arne Delfs, John Ainger, David Goodman and Julien Ponthus. (Updates with currency move in the second paragraph.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Elon Musk's Empire Is Creaking Under the Strain of Elon Musk ©2025 Bloomberg L.P. 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
29-07-2025
- Business
- The Guardian
As Trump's tariff regime becomes clear, Americans may start to foot the bill
Burying the hatchet with Brussels, Donald Trump – flanked by the leader of the European Commission – hailed a bold new era of transatlantic relations, an ambitious economic pact, and declared: 'This was a very big day for free and fair trade.' That was seven years ago. And then on Sunday, the US president – flanked by a different leader of the European Commission – hailed another new era of transatlantic relations, another economic pact and declared: 'I think it's the biggest deal ever made.' Trumpian hyperbole can typically be relied upon as long as he's in the room, at the lectern or typing into Truth Social. What matters after that is the underlying detail – and we have very little, beyond a handful of big numbers designed to grab headlines. What we do know, as a result of this deal, is that European exports to the US will face a blanket 15% tariff: a tax expected, at least in part, to be passed along to US consumers. The price of key products shipped from the EU, from cars to medicine and wine, is about to come into sharp focus. This pact is not unique. Trump's agreement with Japan also hits Japanese exports to the US with a 15% tariff. Most British exports to the US face a 10% tariff under his deal with the UK. A string of countries without such accords, including Brazil, Canada and South Korea, are set to face even higher US tariffs from Friday. The Trump administration currently has a blanket 10% levy in place for US imports, although the president threatened to raise this to 'somewhere in the 15 to 20% range' earlier this week. Ignore, for a moment, the chaos and the noise. Put to one side the unpredictable stewardship of the world's largest economy, and its ties with the world. And forget the many U-turns, pauses and reprieves which have followed bold pronouncements, again and again and again. If you, like many businesses in the US and across the world, are struggling to keep up, take a step back and look at a single number. Since Trump took office, the average effective US tariff rate on all goods from overseas has soared to its highest level in almost a century: 18.2%, according to the Budget Lab at Yale. Trump argues this extraordinary jump in tariffs will bring in trillions of dollars to the US federal government. On his watch, tariffs have so far brought in tens of billions of dollars more in revenue this year than at the same point in 2024. But who picks up the bill? The president and his allies have position this fundamental shift in economic policy as a historic move away from taxing Americans toward taxing the world. But in reality, everyone pays. Tariffs are typically paid at the border, by the importer of the product affected. If the tariff on that product suddenly goes from 0% to 15%, the importer – as you'd expected – will try to pass it on. Every company at every stage of the supply chain will quite literally try to pass the buck, as much as possible. And the very end of the chain, economists expect prices will ultimately rise for consumers. The Budget Lab at Yale estimates the short-term impact of Trump's tariffs so far is a 1.8% rise in US prices: equivalent to an average income loss of $2,400 per US household. Sign up to This Week in Trumpland A deep dive into the policies, controversies and oddities surrounding the Trump administration after newsletter promotion Big firms that have so far done their best to hold prices steady amid the blizzard of tariff uncertainty are now starting to warn of increases. Inflation, which Trump claims is very low in the US, picked up in June. The president appeared to reluctantly reckon with the reality that Americans may start to foot the bill for his tariffs before setting off for Scotland late last week. Asked about the prospect of using revenue from tariffs to distribute 'rebate' checks to US consumers, Trump said: 'We're thinking about that, actually … We're thinking about a rebate, because we have so much money coming in, from tariffs, that a little rebate for people of a certain income level might be very nice.' Given what inflation did to Joe Biden's electoral fortunes, and Trump's keen eye for populist policies, it's hardly a stretch to imagine those cheques – signed by Donald J Trump – landing in bank accounts in time for the midterm elections next November. And such a move would, indeed, be very nice. Especially as it appears increasingly likely that, after this week, Americans will probably be paying more for almost everything.
