Bloomberg Daybreak: US Edition EU-US Tariff Battle Heats Up; Trump Will Send Air-Defense to Ukraine
EU Pushes Back Against Trump's 30% Tariff Threat with Global Trade Unity
The European Union is escalating efforts to counter President Trump's threat of imposing a 30% tariff on EU goods by engaging other affected trading partners like Canada and Japan.
EU negotiators had made progress anticipating a lower tariff rate with possible carve outs, but Trump's announcement disrupted talks with a hard 30% tariff demand. If implemented in two weeks, the EU plans to retaliate on around $84 billion of U.S. goods.
To soften the impact, the EU seeks to collaborate globally, sharing strategies and possibly redirecting trade flows, although replacing the U.S. market entirely remains unlikely.
> The EU signaling that they want to work more closely with some other U.S. trade partners who are perhaps feeling the same kind of heat... is a sign of a little increasing unity for people on the other side of the negotiating table.
This developing global unity aims to blunt the effects of the Trump administration's trade aggression, though significant uncertainty remains before the August 1 tariff deadline.
EU Unites Against U.S. Tariffs
- The EU is increasing cooperation with countries facing U.S. tariffs to form a collective response.
- They may coordinate strategies or reroute trade to mitigate impacts, signaling unity against U.S. trade aggression.
UK-US Tariff Deal Progress
- The U.K. was the first country to sign a tariff reduction deal with the U.S. this year.
- President Trump is preparing for a second state visit hosted by King Charles in September.