The European Union has vowed to retaliate if the US sticks with its baseline 10% tariffs, according to a report in Bloomberg News on Wednesday. The EU said that it would hit US goods like Boeing (BA) planes with tariffs if President Trump follows through with baseline levies on European exports.
Until now, the European Commission had not indicated if Trump's baseline tariff would trigger retaliation.
“We will need to retaliate and rebalance in some key sectors if the US insists on an asymmetrical deal,” the EU’s industry chief, Stephane Sejourne, told Bloomberg News, including if the “outcome of the negotiations is that a 10% tariff remains.”
Meanwhile, the pressure is now on. From Canada to Japan, key trade deals are struggling to get over the finish line with just two weeks to go before Trump's tariff deadline.
Trump managed to firmed up a trade deal with the United Kingdom last week, and its European Union neighbors are apparently pushing for a similarly styled deal despite fits and starts in talks.Trump has threatened tariffs of up to 50% on EU imports after various tariff "pauses" lapse July 9.
Starting Monday, Trump's tariffs will affect washing machines, fridges and ovens. This could mean higher prices for everyday items in the US.
Meanwhile, in Canada, Prime Minister Mark Carney's government threatened to hike tariffs by late July on US imports of steel and aluminum, weeks after Trump ballooned US levies on those metals to 50%. At the G7 this week, Trump and Carney both expressed optimism on a trade deal between the countries.
The furious push follows Trump's recent warning that he would soon send letters setting unilateral tariff rates, raising questions about the status of negotiations and a return to his "Liberation Day" tariffs that roiled markets. Trump instituted a pause on his most punishing duties that expires July 9.
Trump scored a legal win on Friday, as the Supreme Court decline to expedite a challenge from two family-owned businesses, including toy maker Learning Resources.
The case is one of several legal challenges working its way through the court system.
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