01a Apocalyptic

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The European Union is considering a temporary trade agreement with the United States that would maintain a 10 percent tariff on most exports, according to a briefing by the European Commission to EU ambassadors on Friday, reported news portal Politico.The update came after a key round of negotiations in Washington on Thursday, where EU trade commissioner Maroš Šefčovič aimed to defuse US President Donald Trump’s threat to impose a sweeping 50 percent tariff on all European imports starting July 9, if a deal is not reached.Talks will continue on potential exemptions for certain sectors, including the automotive industry, two national officials familiar with the discussions said, according to the news portal..However, the outcome was seen as underwhelming in several European capitals, especially after earlier signals from the Commission’s negotiating team that some industries could receive immediate tariff relief. The US currently imposes tariffs of 25 percent on cars and 50 percent on steel and aluminum imports.

EU remains divided

Despite intensive negotiations, reaching a consensus on a trade agreement with the United States remains challenging for European Commission President Ursula von der Leyen, amid ongoing divisions among EU member states over how to proceed. According to three diplomats, all possibilities, including a failure to reach any deal, are still being considered.In a fresh twist, US officials have reportedly threatened to impose a 17 percent tariff on European food imports, two national officials confirmed, backing a report by the Financial Times.Von der Leyen is expected to hold one-on-one consultations with EU leaders over the weekend before deciding on the bloc’s next steps, one official said. Meanwhile, Trump is likely to meet with his advisers on Monday, meaning any official announcement would be delayed until after those discussions.

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In the ongoing discussion of trade and tariffs, Politico and others reported that the US and China are following through on a deal to lift export restrictions on items essential for technology production.

Following the temporary trade deal between the two countries to slash tariffs back in May, talks continued in June as the US and China agreed to resume the flow of rare earth minerals and magnets (which are essential in civilian and military technology manufacturing) from China to the US Meanwhile, the US would lift export restrictions on items like chip software, ethane, and jet engines.

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The letters initially were supposed to go out on July 4 with a tariff imposition date of Aug. 1, based on Trump’s earlier comments. But US officials were busily negotiating through the holiday weekend, including with Japan, South Korea, the EU, India and Vietnam.

For more, read Bloomberg Economics’ INSIGHT: What to Expect as July 9 Trade Deadline Looms

One of Trump’s signature moves in dealmaking is a unilateral threat when negotiations reach critical stages, so it’s unclear whether the letters he describes are real, or merely meant to strike fear into trading partners still reluctant to offer last-minute concessions.

After Trump announced an agreement with Vietnam last week, the country’s Ministry of Foreign Affairs said negotiators were still coordinating with their US counterparts to finalize the details.

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Treasury Secretary Scott Bessent said Sunday that tariffs announced back in April will take effect on Aug. 1 for countries that have not reached an agreement with President Donald Trump’s administration.

“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level,” Bessent said on CNN’s “State of the Union.”

On Aug. 1, countries will “get a letter saying that if we have not reached an agreement, then you will go back to the April 2 level,” he said.

Bessent rejected the idea that Aug. 1 is yet another new tariff deadline, but the August date could still give trading partners more time to renegotiate tariff rates.

“We are saying this is when it’s happening, if you want to speed things up, have at it, if you want to go back to the old rate that’s your choice,” Bessent said.

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Thailand is making a last-ditch effort to avert a punitive 36% export levy threatened by the Trump administration with offers of greater market access for U.S. farm and industrial goods, … Click to Continue »

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The Trump administration is stepping up pressure on trading partners to quickly make new deals before a Wednesday deadline, with plans for the United States to start sending letters Monday warning countries that higher tariffs could kick in Aug. 1.

That furthers the uncertainty for businesses, consumers and America’s trading partners, and questions remain about which countries will be notified, whether anything will change in the days ahead and whether President Donald Trump will once more push off imposing the rates. Trump and his top trade advisers say he could extend the time for dealmaking but they insist the administration is applying maximum pressure on other nations.

Kevin Hassett, director of the White House National Economic Council, told CBS’ “Face the Nation” on Sunday that Trump would decide when it was time to give up on negotiations.

“The United States is always willing to talk to everybody about everything,” Hassett said. “There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won’t. In the end the president is going to make that judgment.”

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The Trump administration is stepping up pressure on trading partners to quickly make new deals before a Wednesday deadline, with plans for the United States to start sending letters Monday warning countries that higher tariffs could kick in Aug. 1.

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Apple has launched an appeal against an “unprecedented” €500m (£430m) fine imposed by the EU on the company, in the latest clash between US tech companies and Brussels.

The iPhone maker accused the European Commission – the EU’s executive arm – of going “far beyond what the law requires” in a dispute over its app store.

In April, the commission fined Apple €500m after finding the company had breached the Digital Markets Act by preventing app developers from steering users to cheaper deals outside the app store.

Last month, Apple overhauled its app store rules to comply with the EU order to scrap its technical and commercial curbs on developers in order to avoid fines of 5% of its average daily worldwide revenue, or about €50m a day.

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The EU is entering a crunch week with only two days of talks left to secure a trade deal with Washinton to avert Donald Trump’s threatened 50% tariff on its imports into the US.

According to the US treasury secretary, Scott Bessent, on Friday, the negotiations – which continued over the weekend – are focussed on 15 to 18 agreements with important partners, while Trump warned of import tax rates of up to 70% on others.

The uncertainty created by Washington has sent shock waves through the global economy. Businesses have paused investment and the dollar posted its worst performance in 50 years in the first half of the year.

With the clock ticking down to Trump’s 9 July deadline, the European Commission remains uncertain how he will treat the bloc, threatening €1.6tn of transatlantic trade.

“Among member states, the big question will be whether we should reach a deal at all costs to avoid a trade war, or show muscle if the deal is not good enough,” one EU diplomat said.

The German chancellor, , has said he wants a quick UK-style deal to avert a full-scale trade war, while the French president, Emmanuel Macron, favours holding out for a better deal if a rushed deal is “imbalanced”.