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.
Continue reading...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”.
Continue reading...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.
Continue reading...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.
Continue reading...‘We want to see reform implemented with Labour values of fairness,’ the PM says
In his final answer Starmer explained how he thought government and business should work together.
A true partnership is not two people or two bodies trying to do the same thing. It’s two people or bodies realising they bring different things to the table.
Government shouldn’t try to run businesses. It’s done that in the past and it doesn’t work particularly well.
Continue reading...Daniel Ervér cites ‘fast-moving situation’ as US administration has changed rules on several occasions
Clothing prices are beginning to rise in the US as Donald Trump’s tariffs on imported goods start to have an effect, according to the boss of H&M, one of the world’s biggest fashion retailers.
Daniel Ervér, the chief executive of the Swedish retailer, said: “In the US, we are starting to see some competitors increasing prices. Different competitors are acting in different ways. Some more aggressively and some more cautiously.”
Continue reading...Exclusive: poll shows 62% of women and 47% of men across political spectrum say economy and inflation getting worse
Women across the political spectrum are more concerned about the state of the US economy and inflation under Donald Trump than men are, according to a new exclusive poll for the Guardian.
More Democrats than Republicans are now concerned about the economy following the president’s return to power. But pessimism was higher for women even among Republicans and independents, according to a new Harris poll.
More women said they are very worried about food prices (52% of women compared to 39% of men)
More women said they’re spending more time trying to find deals or go to more affordable stores (36% versus 26%)
More women said their financial security is getting worse because of their difficulty in affording essential goods and services (55% versus 46%)
Continue reading...Exclusive: Sources say US wants information on when importing of raw materials from abroad at Port Talbot site will stop
Donald Trump is threatening to keep 25% tariffs on some or all of its steel imports from the UK unless it gives specific guarantees over the Indian-owned steelmaking plant at Port Talbot in south Wales, sources have told the Guardian.
An agreement to reduce tariffs on UK car exports to the US and scrap them for the aerospace sector was signed off by the US president and Keir Starmer on Monday, on the sidelines of the G7 summit in Canada.
Continue reading...Shares in parent company Tata Motors fall as JLR says it will reallocate vehicles to ‘accessible markets’
The British luxury carmaker Jaguar Land Rover has warned of a hit to profits from Donald Trump’s tariffs, after the company temporarily paused deliveries to the US.
The carmaker, which is owned by India’s Tata Motors, halted shipments to America in April after the US president imposed a 25% duty on all foreign-made vehicles, before resuming them last month. The country accounts for more than a quarter of JLR’s sales.
Continue reading...Draft agreement may reassure top US military suppliers after president’s tariffs flip-flopping threatened production
The draft trade agreement with China announced by Donald Trump on Wednesday would ease concerns from top US military suppliers about rare-earth metals and magnets that, if cut off permanently, could hobble production of everything from smart bombs to fighter jets to submarines and other weapons in the US arsenal.
While the deal has not yet been finalised, it may reassure major defense companies such as Lockheed Martin, the largest US user of samarium – a rare-earth metal used in military-grade magnets – whose supply is entirely controlled by China.
Continue reading...US commerce secretary expresses optimism that deal will resolve concerns about rare earths and magnets
The US and China have extended the truce in their trade war after two days of talks in London that resulted in a “framework” deal over export restrictions on rare earths and semiconductors.
Negotiations to resolve the wider tariff war triggered by Donald Trump in April will continue but the truce settles, for now, growing tension between the two economic super-powers.
Continue reading...ThyssenKrupp executive warns of ‘collateral damage’ to supply chains and urges protective action on energy pricing
Europe’s steel industry faces being wiped out in the face of Donald Trump’s prohibitive 50% tariffs, high energy costs and a mountain of cheaper Chinese steel, one of Germany’s biggest industrial groups has warned.
Ilse Henne, a board member at the steel, engineering and chemicals group ThyssenKrupp, said the industry faced an existential crisis after the US president’s decision last week to double tariffs on steel and aluminium imports from 25% to 50%.
Continue reading...President, who had Thursday call with China’s Xi Jinping amid tariff dispute, says ‘meeting should go very well’
Senior US administration officials will meet with a Chinese delegation on Monday in London for the next round of trade negotiations between Washington and Beijing, Donald Trump said on Friday.
The meeting comes after a phone call between Trump and the Chinese leader, Xi Jinping, on Thursday, which the US president described as a “very positive” conversation as the two countries attempt to break an impasse over tariffs and global supplies of rare earth minerals.
Continue reading...US president says he accepted invitation in first phone conversation between leaders since January
Donald Trump said he had accepted an invitation to meet Xi Jinping in China after a phone conversation on trade was held between the leaders of the world’s two largest economies.
In a post on Truth Social, the US president said the “very good” call lasted about 90 minutes and the conversation was “almost entirely focused on trade”.
Continue reading...President brings in ban for visitors from 12 countries and restricts travel from a further seven
Donald Trump has ordered an investigation into Joe Biden’s actions as president, alleging top aides masked his predecessor’s “cognitive decline”.
The investigation will build on a Republican-led campaign already under way to discredit the former president and overturn some of his executive actions, including pardons and federal rules issued towards the end of his term in office.
Continue reading...Home secretary appears to accept early release proposals will put more pressure on police as she is questioned at select committee
Defence sources believe that Britain will be forced to sign up to a target of lifting defence spending to 3.5% of GDP by 2035 at this month’s Nato summit after a campaign by the alliance’s secretary general to keep Donald Trump onboard, Dan Sabbagh reports.
Later today the data (use and access) bill will return to the Commons from the Lords in the third round of “ping pong” between the two houses. It is not unusual for “ping pong” to go on for a round or two, as bills which are almost ready for royal assent shuttle between the elected and unelected chamber while they try to resolve matters of dispute. But, in this case, the Lords are digging in a bit more than usual.
The government has been accused of “supporting thieves”, as it suffered a further heavy defeat at the hands of peers pressing their demand for steps to safeguard the creative industries against artificial intelligence.
The fourth and latest setback for the Labour frontbench over the issue in the House of Lords was inflicted despite pleas by a minister for the upper chamber to end its prolonged stand-off over the data (use and access) bill.
Continue reading...Morocco’s commercial centre has brought investment to the continent – but critics say it masks domestic inequality
For centuries, Casablanca was a significant trading hub for merchants from across the breadth of the Atlantic coast, given its geographical position between Africa, the Middle East and Europe.
These days, Morocco’s economic capital is merging those historical roots with a strong modern commercial identity. One such manifestation is the Casablanca Finance City (CFC) district, whose high-rise buildings stand as a symbol of the city’s dream of being a main gateway for international investment into Africa.
Continue reading...Beijing says it will safeguard its interests after Donald Trump claimed it had ‘totally violated’ agreement
China has accused the US of “seriously violating” the fragile US-China detente that has been in place for less than a month since the two countries agreed to pause the trade war that risked upending the global economy.
China and the US agreed on 12 May to pause for 90 days the skyrocketing “reciprocal” tariffs that both countries had placed on the others goods in a frenzied trade war that started a few weeks earlier. Tariffs had reached 125% on each side, which officials feared amounted to virtual embargo on trade between the world’s two biggest economies.
Continue reading...Prime minister also reaffirms policy on Taiwan while hitting back at Donald Trump’s doubling of tariffs on steel and aluminium imports
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Anthony Albanese has responded to the United States’ calls for a huge rise in defence spending amid fears about China, while hitting back at Donald Trump’s move to double tariffs on steel and aluminium.
On Saturday US secretary of defense, Pete Hegseth, urged US allies in the region, including Australia, to “share the burden” and lift defence spending to 5% of GDP, warning that “Beijing is credibly preparing to potentially use military force to alter the balance of power in the Indo-Pacific”.
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Continue reading...Trump announced on Friday night that he planned to double rates on imported steel, piling more pressure on the industry
The UK’s trade secretary, Jonathan Reynolds, will meet his US counterpart next week to thrash out a timeline for exempting the UK from US steel and aluminium tariffs after Donald Trump announced he would double them.
British officials are seeking clarity on the implications of Trump’s announcement on Friday night that he planned to double the tariffs from 25% to 50% from Wedneday 4 June, piling further pressure on global steel trade.
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