U.S. President Donald Trump speaks to the media as he departs the White Home on July 15, 2025 in Washington, DC.
Anna Moneymaker | Getty Photos Information | Getty Photos
U.S. President Donald Trump has now set his sights on commerce negotiations with the European Union, after asserting a framework settlement with Japan.
“We have now Europe coming in tomorrow, and the following day, we’ve another ones coming in,” Trump mentioned late on Tuesday, with out specifying particulars.
Stress has ramped up on EU and U.S. negotiators to return to an settlement by Aug. 1, with the Trump administration appearing intent on not altering the timeline on tariffs again.
Levies of 30% on U.S.-bound imports from the EU are set to return into impact subsequent month, with countermeasures from Brussels doubtlessly following quickly after. The primary tranche of retaliatory tariffs from the EU, which already goal imports from the U.S. value 21 billion euros, are presently on maintain till Aug. 6, whereas extra recourses are being ready.
However the U.S.-Japan settlement seems to have unfold a optimistic sentiment amongst consultants.
“The Japan deal has considerably raised hopes that the EU may additionally have the ability to attain a commerce deal,” Deutsche Financial institution Analysis strategists and economists mentioned in a Wednesday observe.
Katsuhiko Aiba, an economist at Citi, recommended in a separate observe that the finer particulars of Japan’s settlement with the U.S. may impression negotiations with the EU.
“It’s notable that auto tariffs had been diminished with none cap on auto exports for a serious auto exporting nation, which can have implications for negotiations with the EU and South Korea,” he identified.
The U.S.-Japan deal features a baseline tariff charge of 15%, with Reuters reporting that levies on autos may even be minimize to this degree — down from the 25% presently in place.
Carving out exemptions or decrease charges for some key sectors has lengthy been on EU’s commerce settlement want listing, with analysts anticipating that the bloc may settle for a baseline tariff in alternate for such sectoral provisions.
Highway automobiles are among the many high three exports from the EU to the U.S., in response to the European Council.
The pan-European Stoxx 600 index was buying and selling 1% on Wednesday, roughly an hour after markets opened, with autos leaping by round 3.5%.
Whereas Europe is eagerly awaiting updates on commerce negotiations with the U.S., European Fee President Ursula von der Leyen and European Council President Antonio Costa are travelling to Asia. They’re set to satisfy Japanese leaders on Wednesday earlier than the EU-China summit on Thursday, with commerce possible at high of their agenda.
Trump’s protectionist commerce insurance policies are exacerbating current tensions between the EU and China, consultants instructed CNBC. They famous Beijing’s considerations that the U.S. might strain the EU to sharpen its stance on China.
EU Commerce Commissioner Maros Sefcovic on Tuesday mentioned in a publish on X that he had “had an vital video name” with Chinese language Commerce Minister Wang Wentao, with out supplying additional particulars.