Trump to Unveil Trade Agreements and Tariff Measures
The ongoing trade conflicts between the United States and the European Union (EU) are reaching a critical point, with both parties engaged in intense negotiations to avoid escalations that could severely impact a wide range of European goods.
In a move that could potentially disrupt the global market, President Donald Trump has set a deadline of August 1, 2025, demanding new trade deals or threatening to raise tariffs on EU products from the current levels up to 50%. This could significantly impact a variety of European goods, from French cheese to German electronics.
Over the weekend, intensive negotiations took place between EU and US negotiators, with US authorities applying "maximum pressure" while indicating significant progress and the potential for multiple announcements soon. Earlier negotiations had focused on a political understanding to avoid the 50% tariffs, with discussions centring around a baseline tariff possibly remaining at 10% for most EU imports, while aiming for tariff relief in strategic sectors like aircraft manufacturing.
However, the EU remains divided internally on accepting a baseline 10% tariff deal. Germany and Italy lean towards acceptance, whereas France and Ireland are more skeptical, calling for reciprocal tariff measures should the US maintain tariffs on EU goods. The European Commission is seeking backing from member states for a provisional skeleton deal, which would maintain tariffs but keep trade channels open, while further sector-specific relief talks would continue.
The situation remains tense as the US tariff “pause” is due to end on July 9, making the coming hours critical for finalizing any agreements to prevent tariff hikes.
Regarding other countries, including BRICS nations (Brazil, Russia, India, China, South Africa), no recent public trade developments were reported in the provided context. However, given the US focus on securing new deals with traditional partners like the EU, UK, and Vietnam, it is likely that any trade disputes or negotiations with BRICS members remain a separate and possibly more complex geopolitical matter not covered in the latest news retrieved here.
Trump's tariff policy is aimed at increasing production in the USA, but it has faced criticism from countries like China, which has criticized the use of tariffs as a coercive measure. The Brics alliance, which includes Brazil, Russia, India, China, and South Africa, has also criticized the increase in unilateral tariffs in trade policy.
In the meantime, the US is sending letters to 12 to 15 countries about new tariffs or potential trade agreements by Wednesday. The dispatch of these letters begins at 12:00 local time (EST), according to Trump. The letters will come into effect on August 1, as stated by Trade Minister Howard Lutnick.
As the trade conflicts continue to unfold, both the US and the EU are under pressure to reach a mutually beneficial agreement to avoid further escalations and maintain economic stability.
- The ongoing trade conflicts between the United States and the European Union (EU) have sparked intense discussions in various sectors, including the industry, finance, and business, as both parties negotiate to avoid escalations that could impact a wide range of goods.
- The potential trade deals between the US and EU could significantly affect politics, as the EU remains divided internally on accepting a baseline tariff deal, with some countries like France and Ireland calling for reciprocal tariff measures.
- The ongoing trade conflicts are not confined to the US and EU, as other countries, including BRICS nations, have also criticized the increase in unilateral tariffs in trade policy. This issue could be a separate and possibly more complex geopolitical matter not covered in the latest news.
