NEGOTIATIONS WITH THE EU
Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the US.
Trump said he would “probably” tell the EU within two days what rate it could expect for its exports to the US, adding that the 27-nation bloc had become much more cooperative.
“They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” he said.
EU trade chief Maros Sefcovic said good progress had been made on a framework trade agreement and a deal may even be possible within days.
Sefcovic told EU lawmakers he hoped that EU negotiators could finalise their work soon, with additional time now from the extension of a US deadline to Aug 1 from Jul 9.
“I hope to reach a satisfactory conclusion, potentially even in the coming days,” Sefcovic said.
However, Italian Economy Minister Giancarlo Giorgetti had earlier warned that talks between the two sides were “very complicated” and could continue right up to the deadline.
EU officials and auto industry sources said that US and EU negotiators were discussing a range of potential measures aimed at protecting the European Union’s auto industry, including tariff cuts, import quotas and credits against the value of EU automakers’ US exports.
HIGHEST TARIFF LEVELS SINCE 1934
Equity markets shrugged off the Republican president’s latest tariff salvo on Wednesday, while the yen remained on the back foot after the levies imposed on Japan.
Following Trump’s announcement of higher tariffs for imports from the 14 countries, US research group Yale Budget Lab estimated consumers face an effective US tariff rate of 17.6 per cent, up from 15.8 per cent previously and the highest in nine decades.
Trump’s administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about US$100 billion so far and could collect US$300 billion by the end of the year. The United States has taken in about US$80 billion annually in tariff revenue in recent years.
The Trump administration promised “90 deals in 90 days” after he unveiled an array of country-specific duties in early April. So far, only two agreements have been reached, with Britain and Vietnam. Trump has said a deal with India was close.
Massachusetts Governor Maura Healey, a Democrat, blasted Trump for his “failed trade war”.
“President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses,” she said in a statement
Source: CNA
