Category Archives: Trump tariffs

Von der Leyen ducks Trump’s trade blitz – but deal exposes EU’s faultlines

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Europe may have staved off an economic clash, but the compromise leaves the bloc facing higher tariffs and internal discord

There is no doubt that Ursula von der Leyen was under intense pressure on Sunday when she sat next to Donald Trump in the ballroom at his Turnberry golf course before what EU officials knew would be a gruelling round of trade talks.

As the European Commission president emerged less than an hour later to announce that the worst of Trump’s tariff threats had been avoided, the recriminations from inside the EU began almost immediately.

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European Central Bank keeps interest rates on hold despite sluggish growth

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Central bank shuns calls to reduce borrowing costs as higher US tariffs loom

The European Central Bank has kept interest rates on hold as figures showed the eurozone economy maintaining a slow pace of economic growth.

In what was widely expected to be a pause before further cuts later in the year, the Frankfurt-based central bank shunned calls to reduce the cost of borrowing and held its main interest rate at 2% and the deposit rate at 2.15%.

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Trump announces Japan trade deal as doubt cast over future of PM Ishiba

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Tokyo’s failure to secure a US deal sooner had caused political unease and economic uncertainty in Japan

Donald Trump has announced a trade deal with Japan, potentially resolving weeks of fraught negotiations between the two allies which had caused economic uncertainty in Tokyo and mounting speculation about the future of the prime minister, Shigeru Ishiba.

“We just completed a massive deal with Japan,” the US president announced in a post online, adding: “Japan will invest, at my direction, $550 billion dollars into the United States.”

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Rubio moves to strip US visas from eight Brazilian judges in Bolsonaro battle

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Move by Marco Rubio is latest attempt by Trump administration to help former president avoid justice over alleged coup

The US secretary of state, Marco Rubio, has reportedly stripped eight of Brazil’s 11 supreme court judges of their US visas as the White House escalates its campaign to help the country’s former president Jair Bolsonaro avoid justice over his alleged attempt to seize power with a military coup.

Bolsonaro, a far-right populist with ties to Donald Trump’s Maga movement, is on trial for allegedly masterminding a murderous plot to cling to power after losing the 2022 election to his leftwing rival, Luiz Inácio Lula da Silva. Bolsonaro is expected to be convicted by the supreme court in the coming weeks and faces a jail sentence of up to 43 years.

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Trump threatens to impose drug and chip tariffs as soon as 1 August

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US president talks of low tariff to give pharmaceutical firms a year or so to build, and then making it ‘very high’

Donald Trump has threatened to impose tariffs on pharmaceutical products and semiconductors as soon as 1 August, the latest deadline for the introduction of his “reciprocal” levies on individual countries.

The US president told reporters late on Tuesday the taxes on drug imports could be announced “probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff”.

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Trump says Indonesia to pay 19% tariffs, buy 50 Boeing jets under trade deal

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Rate is significantly below the 32% the US president had threatened but timeline for implementation of deal remains unclear

US President Donald Trump says he has struck a trade pact with Indonesia resulting in significant purchase commitments from the south-east Asian country, after negotiations to avoid steeper tariffs.

Indonesian goods entering the United States would face a 19% tariff, Trump said in a post on his Truth Social platform. This is significantly below the 32% level the president earlier threatened.

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China’s economy beats expectations in face of Trump’s trade war

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GDP grows 5.2% in second quarter as world’s second largest economy ‘front-loads’ shipments before tariffs kick in

China’s economy grew more strongly than expected in the second quarter as it proved resilient in the face of Donald Trump’s trade war.

China’s gross domestic product (GDP) grew 5.2% in April to June compared with a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts’ expectations for a rise of 5.1%.

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Trump’s latest tariffs ‘are real’ unless deals improve, economic adviser says

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Kevin Hassett says talks are ‘ongoing’ after US president announced 30% tariffs on goods from EU and Mexico

Donald Trump has seen some trade deal offers and thinks they need to be better, Kevin Hassett, the White House economic adviser, said on Sunday, adding that the president will proceed with threatened tariffs on Mexico, the European Union and other countries if they don’t improve.

“Well, these tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett told ABC’s This Week program. “But you know, conversations are ongoing, and we’ll see where the dust settles.“

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Macron calls on EU to ‘defend European interests resolutely’ from Trump tariffs

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French president says bloc should be ready for trade war after 30% tariff threat but other EU leaders call for calm

The French president, Emmanuel Macron, has called on the EU to “defend European interests resolutely” after Donald Trump threatened to impose 30% tariffs on nearly all imports from the EU.

It came as the EU moved to de-escalate tensions after the blunt move by Trump on Saturday. The bloc declared a further pause on €21bn of retaliatory tariffs until 1 August, dovetailing with the US president’s new deal deadline.

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Trump’s 10% tariff on most UK goods ‘here to stay’, says Lord Mandelson

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British ambassador to US believes universal levy unlikely to change but there is ‘scope’ for negotiations in some sectors

The 10% tariffs on most UK goods imported into the US are likely “here to stay”, according to Lord Mandelson.

The British ambassador to the US said the “universal 10% tariff” was unlikely to change but that there was “scope” for negotiations in different sectors and industries, such as technology.

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EU will be reeling over how to tackle trade talks after Trump’s 30% tariff threat

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Bloc had already backtracked from tough talk to seeking a bare bones deal – but US president has turned tables again

Second-guessing Donald Trump is a fool’s errand.

But Saturday’s shock threat to impose tariffs of 30% on the EU is a blow to the bloc’s confidence, which had already secretly capitulated during negotiations with diplomats revealing they had to sacrifice trade for the wider prize of security and defence of the continent.

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Donald Trump announces 30% tariffs on goods from the EU and Mexico

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The president made the announcement on social media, even as the EU was hoping for a trade agreement

Donald Trump announced on Saturday that goods imported from both the European Union and Mexico will face a 30% US tariff rate starting 1 August, in letters posted on his social media platform, Truth Social.

The tariff assault on the EU came as a shock to European capitals as the European Commission and the US trade representative Jamieson Greer had spent months hammering out a deal they believed was acceptable to both sides.

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Enduring confusion is the only certainty amid Trump’s latest tariff threats

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Experts suspect ‘frontloading’ of activity may have masked deeper impact of tariffs on the US economy

“There has been no change to this date, and there will be no change,” Donald Trump said on his Truth Social platform this week. “All money will be due and payable starting AUGUST 1, 2025 – no extensions will be granted.”

There had, in fact, been a change. The 90-day “pause” on the highest tariffs threatened by Trump on his so-called “liberation day” in April, elapsed on Wednesday. But with just three trade agreements in place, instead of the 300 once promised, the White House had switched one deadline for another.

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Shunned Myanmar leader thrilled at US contact after Trump tariff letter

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Min Aung Hlaing expresses ‘sincere appreciation’ for letter from US president threatening 40% tariff

Myanmar’s military leader has praised Donald Trump and asked him to lift sanctions, as the junta sought to capitalise on a tariff letter from the US president believed to be Washington’s first public recognition of its rule.

Min Aung Hlaing, who has been in power since a 2021 coup, expressed his “sincere appreciation” for Trump’s letter, which threatened a tariff of 40% on its goods, and commended the US president for his “strong leadership” and for guiding the US “toward national prosperity with the spirit of a true patriot”.

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US will impose 35% tariffs on Canadian imports, Trump says in letter

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New levies, apart from the 25% on auto parts and 50% on steel and aluminum, will come into effect on 1 August

Donald Trump has said the US will impose a 35% tariff on imports from Canada next month and threatened to impose blanket tariffs of 15% or 20% on most other trade partners.

In a letter released on his social media platform, Trump told Mark Carney, the Canadian prime minister, the new rate would go into effect on 1 August and would increase if Canada retaliated.

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Trump announces 50% tariff on Brazil, citing a ‘witch-hunt’ against Bolsonaro

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Latest threats heighten fears that the president’s erratic trade strategy risks exacerbating inflation across the US

Donald Trump announced on Wednesday that his administration will hit Brazil with a 50% tariff on products sent to the US, tying the move to what he called the “witch-hunt” trial against its former president, Jair Bolsonaro.

Posting letters on Truth Social, the US president had earlier in the day targeted seven other countries – the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka – for stiff US tariffs on foreign exports starting on 1 August.

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Trump threatens 17% tariffs on food and farm produce exports from Europe

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EU says it ‘favours a negotiated solution’ but is prepared for potential trade war with retaliatory duties

Donald Trump threatened to impose 17% tariffs on food and farm produce exports from Europe during talks in Washington this week, it has emerged.

Such tariffs would hit everything from Belgian chocolate to Kerrygold butter from Ireland and olive oil from Italy, Spain and France, all big sellers in the US.

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Trump says US to start sending tariff rates letters to trading partners

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Letters to be sent to countries without a deal in place before end of 90-day pause on 9 July

Donald Trump has said the US will start sending letters to trading partners setting out tariff rates that countries will have to pay from the beginning of next month.

The US president told the media that about “10 or 12” letters would be sent out on Friday, with further letters sent out over the “next few days”.

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A new style, tariff trouble, and no mention of Yoon: key takeaways from two hours with South Korea’s new president

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Lee Jae-myung shows no sign of grandeur, cutting very different figure to impeached predecessor Yoon Suk Yeol

South Korea’s president, Lee Jae-myung, has given his first big press conference, a month after winning an election in a country shaken by a brief declaration of martial law imposed by his now-impeached predecessor, Yoon Suk Yeol.

Everything about the event seemed designed to signal a break from the defensive, isolated style of previous Yoon administration.

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EU retaliation against Trump drug tariffs would be bad idea, says industry

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European pharmaceutical body says it would be ‘negative for both sides’ if Brussels hits back on threatened US levies

The European pharmaceutical industry has urged Brussels not to retaliate if Donald Trump brings in threatened tariffs on imported drugs, amid fears he could impose the levies as early as next week.

The US president said last week that the sector-specific tariffs were coming “very soon”. There is concern in Brussels that he could impose them imminently to give himself further leverage ahead of his self-imposed 9 July deadline for trade deals with the EU and about 60 countries.

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