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.
Continue reading...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.
Continue reading...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.
Continue reading...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.
Continue reading...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”.
Continue reading...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.
Continue reading...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.
Continue reading...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...