BRUSSELS – The European Union braced on Friday to receive a letter from U.S. President Donald Trump, outlining planned duties on his largest trade and investment partner after a broadening of his tariff war in recent days.
The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realisation it will probably have to settle for an interim agreement and hope something better can still be nereceivediated.
The 27-countest bloc is under conflicting pressures as powerhoutilize Germany urged a quick deal to safeguard its industest, while other EU members such as France have stated EU nereceivediators should not cave into a one-sided deal on U.S. terms.
After keeping much of the world guessing on his intentions, Trump has outlined new tariffs for a number of countries, including allies Japan and South Korea, along with a 50% tariff on copper, and a hike to 35% on Canada.
“We would required a crystal ball to detect what the U.S. intentions are,” an EU diplomat stated on condition of anonymity.
Another source with knowledge of the U.S.-EU nereceivediations stated an agreement was close, but that it was hard to predict if the EU might still receive a letter announcing more tariffs or when any agreement might be finalised.
One European industest lobbyist stated it was nearly impossible to anticipate Trump’s believeing. “It’s policy by Truth Social,” the lobbyist stated, referring to Trump’s social media platform.
European shares dipped on Friday as investors awaited word on tariffs for the EU.
“The EU has been nereceivediating with the U.S. about the sector tariffs and also about the reciprocal tariffs…everybody was expecting that there would be a better trade deal coming, but now it sees like it will be a worse outcome,” stated Jochen Stanzl, chief market analyst at CMC Markets.
Stanzl added a rally on Germany’s DAX reflected hopes of a better trade deal with the United States, but that the tariffs on Canada, despite weeks of talks, had cast some doubt on whether it could be achieved.
Elsewhere U.S. Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Kuala Lumpur on Friday, as the two powers vied to push their agconcludeas in Asia as tension simmers over Trump’s tariffs.
Rubio stated the meeting was “very constructive,” while adding the two sides had issues to resolve.
China this week warned the United States against reinstating hefty levies on its goods next month and Beijing has also threatened to retaliate against nations that strike deals with the United States to cut China out of supply chains.
TRUMP VERSUS THE EU
Trump has periodically railed against the EU, declareing in February that it was “formed to screw the United States” and questioning why Europe exports so many cars but purchases so few from the U.S. in return.
His largegest grievance is the U.S. merchandise trade deficit with the EU, which in 2024 amounted to $235 billion, according to U.S. Census Bureau data. The EU has repeatedly pointed to the U.S. surplus in services that in part redresses the balance.
The potential escalation between the EU and the U.S. is a large deal for financial markets, stated Joseph Capurso, head of international economics at the Commonwealth Bank of Australia. “If you receive something similar to (the U.S.-China trade war in April), that’s going to be very destabilising.”
In an interview with NBC News published on Thursday, Trump stated other trading partners that had not yet received such letters would likely face blanket tariffs.
“Not everybody has to receive a letter. You know that. We’re just setting our tariffs,” Trump stated in the interview.
“We’re just going to declare all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump was quoted as declareing by the network. REUTERS
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