FT: Trump rejects EU request to lower car tariffs

FT: Trump rejects EU request to lower car tariffs

US President Donald Trump has reportedly rejected the European Union's request to lower car tariffs, setting a minimum tariff rate of 15% to 20% on EU goods as part of any deal, according to the Financial Times [1]. The move comes ahead of an August 1 deadline for sweeping duties to take effect. Trump has threatened the bloc with 30% duties beginning August 1, which is also the date he plans to impose tariffs on various trading partners and potential sectoral levies on copper, pharmaceuticals, and semiconductors.

The EU has expressed disappointment with the latest discussions, with a senior EU diplomat stating, "We don’t want a trade war, but we don’t know if the US will leave us a choice" [1]. Trump has already sent letters to over 20 trade partners outlining tariffs on goods imported from their countries, with new baseline tariff levels ranging from 20% to 40%, except for a 50% levy on goods from Brazil [1].

Trump's actions have led to market fluctuations, with US stocks declining following the report of his proposal for a 15-20% minimum tariff on all EU goods [3]. The Dow Jones Industrial Average dropped 250.62 points, or 0.56%, to 44,233.87, the S&P 500 fell 10.64 points, or 0.17%, to 6,286.72, and the Nasdaq Composite lost 26.82 points, or 0.13%, to 20,858.83 at 12:59 pm (ET) [3].

The EU Commission, which oversees trade policy for the 27-nation bloc, has until next Wednesday to reach an agreement or face Trump reintroducing his extensive tariffs. European Commission President Ursula von der Leyen stated that the EU is "ready for a deal" with the United States [3].

References:
[1] https://au.finance.yahoo.com/news/trump-tariffs-live-updates-trump-pushes-for-higher-eu-tariffs-as-aug-1-barrage-looms-200619666.html
[2] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-eu-warns-of-big-gap-as-trump-amps-up-threats-on-eu-canada-mexico-200619704.html
[3] https://www.livemint.com/economy/donald-trump-plans-to-impose-tariffs-up-to-20-on-eu-goods-amid-growing-trade-tensions-11752858013537.html