US and EU clinch trade deal with 15% tariff rate
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More news: The United States and European Union reached a trade agreement on Sunday (Monday AEST) setting a 15% tariff on most EU goods, including automobiles, staving off a trade war that could have sent shock waves through the global economy.
What they said: US President Donald Trump and European Commission President Ursula von der Leyen announced the deal after meeting at Trump’s golf resort in Turnberry, Scotland. Trump said the EU would buy US$750 billion ($1.1 trillion) in US energy, invest an additional US$600 billion in America, and make major purchases of military equipment.
Steel and aluminium tariffs remain at 50%. Von der Leyen said the deal “will bring stability” and “predictability.”
Trump had threatened a 30% duty if no agreement was reached by 1 August, while the EU had prepared retaliatory tariffs on €93 billion worth of American goods if talks had failed.
At the start of the meeting with von der Leyen, Trump said: "We're very close to a deal with China. We really sort of made a deal with China, but we'll see how that goes.”
US and China expected to extend tariff pause by 90 days: SCMP
The news: Beijing and Washington are expected to extend their tariff truce by another 90 days at trade talks starting Monday in Stockholm, the South China Morning Post reported, citing unnamed sources on both sides of the negotiations.
The current suspension, agreed in May, is set to expire on 12 August. One source told SCMP the extension would include a commitment by both nations not to impose additional tariffs or escalate the trade war by other means.
The context: The talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, will follow a meeting between European Commission President Ursula von der Leyen and Donald Trump at his golf course in Scotland. The leaders were believed to be negotiating a deal that could introduce a 15% baseline tariff on most EU exports.
The Stockholm round of negotiations between Chinese and US trade officials will likely focus on longstanding disputes following earlier talks in Geneva and London focused on de-escalation.
According to officials, the Chinese delegation will likely raise the subject of the fentanyl-related tariffs imposed by the US earlier this year, while the US side is expected to raise concerns about China's industrial overcapacity and technology restrictions.
The talks come amid speculation of a Trump-Xi summit at APEC in October. China has been emboldened by better-than-expected export performance, a record trade surplus and recent US reversals on export curbs, CNN noted.
The sources: The South China Morning Post, Bloomberg, Reuters, CNN
