EU states gave their final nod on Thursday (June 25) to a year-old tariff-pending deal with the United States. The deal is set to enter into force before the July 4 deadline marked by President Donald Trump. Trapped between Trump and EU chief Ursula von der Leyen in July 2025, the development sets levies of 15 per cent on several EU exports to the United States, along with zero tariffs for US industrial goods coming into the 27-nation bloc.&nbsp;However, the European Union had not yet completed its part of the agreement, as months of delays were triggered by Trump's remarks regarding Greenland and a US Supreme Court ruling that invalidated several of his tariffs. The latest approval from EU member states, which had previously endorsed the deal in principle, removes the bloc's final legislative obstacle after the European Parliament backed it earlier this month.&nbsp;Also read: <a href="https://www.wionews.com/india-news/can-india-withstand-another-west-asia-crisis-how-israel-hezbollah-iran-tensions-could-hit-its-energy-security-wion-decodes-1782374369218">Can India withstand another West Asia crisis? How Israel-Hezbollah-Iran tensions could hit its energy security | WION Decodes</a>&nbsp;"The deal's approval confirms the EU's commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guardrails to protect European economic interests," an EU statement said. Lawmakers also incorporated several protective measures into the agreement, including granting the European Commission authority to suspend the pact if the United States fails to honour its obligations or takes actions that undermine trade and investment ties. Parliament also came up with an expiration date of end-2029, until and unless the agreement is renewed by then. "Openness must go hand in hand with safeguarding our interests," said Michael Damianos, the commerce minister for Cyprus which holds the EU's rotating presidency. "These measures achieve both, supporting stable and predictable trade flows with the US while ensuring the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake," he added. &nbsp;

 The latest approval from EU member states, which had previously endorsed the deal in principle, removes the bloc's final legislative obstacle after the European Parliament backed it earlier this month.

EU states gave their final nod on Thursday (June 25) to a year-old tariff-pending deal with the United States. The deal is set to enter into force before the July 4 deadline marked by President Donald Trump. Trapped between Trump and EU chief Ursula von der Leyen in July 2025, the development sets levies of 15 per cent on several EU exports to the United States, along with zero tariffs for US industrial goods coming into the 27-nation bloc. However, the European Union had not yet completed its part of the agreement, as months of delays were triggered by Trump's remarks regarding Greenland and a US Supreme Court ruling that invalidated several of his tariffs. The latest approval from EU member states, which had previously endorsed the deal in principle, removes the bloc's final legislative obstacle after the European Parliament backed it earlier this month. Also read: Can India withstand another West Asia crisis? How Israel-Hezbollah-Iran tensions could hit its energy security | WION Decodes "The deal's approval confirms the EU's commitment to a stable, predictable and mutually beneficial transatlantic trade relationship, while preserving the necessary guardrails to protect European economic interests," an EU statement said. Lawmakers also incorporated several protective measures into the agreement, including granting the European Commission authority to suspend the pact if the United States fails to honour its obligations or takes actions that undermine trade and investment ties. Parliament also came up with an expiration date of end-2029, until and unless the agreement is renewed by then. "Openness must go hand in hand with safeguarding our interests," said Michael Damianos, the commerce minister for Cyprus which holds the EU's rotating presidency. "These measures achieve both, supporting stable and predictable trade flows with the US while ensuring the EU can respond swiftly and proportionately when the deal is not respected or its interests are at stake," he added.

&nbsp;The latest approval from EU member states, which had previously endorsed the deal in principle, removes the bloc's final legislative obstacle after the European Parliament backed it earlier this month.

EU gives final approval to US trade deal, set to take effect before Trump's given deadline

On Monday, the United States and China returned to the negotiating table, aiming to extend their fragile trade truce by another 90 days and stave off a new wave of tariffs that could destabilise global supply chains. Senior economic officials from both countries are meeting in Stockholm to hash out differences ahead of an August 12 deadline. Without a deal, existing US duties on Chinese goods could snap back to triple-digit levels, effectively triggering a new phase of the trade war.&nbsp;As per Reuters, the talks follow a series of preliminary deals in May and June that temporarily paused tariffs and export controls on sensitive goods like rare earths and AI chips. The new round is expected to focus on locking in the tariff ceasefire and setting the stage for a potential Trump–Xi summit later this year. Unlike the major US–EU trade agreement signed on Sunday, which introduced a 15 per cent tariff framework and $750 billion in energy purchases, the US–China talks are reportedly expected to produce only a temporary extension, not a full-blown deal.&nbsp;Trade analysts told Reuters that another 90-day pause is likely, which would allow both sides to avoid an escalation and maintain space for diplomacy. Such a truce would also help facilitate a meeting between President Donald Trump and Chinese President Xi Jinping, potentially in October or November.<h2>Deep-rooted issues remain untouched</h2>The discussions so far have been narrowly focused on halting retaliation. Talks in Geneva and London earlier this year dealt with tariff reductions and the resumption of rare earth and chip exports, but avoided the core ideological clash between the two economies. “The talks are not yet addressing the fundamental disagreements,” said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies, as quoted by Reuters. “I’d be surprised if there is an early harvest… but an extension of the ceasefire for another 90 days seems the most likely outcome.”&nbsp;Among Washington’s long-standing concerns are China’s state-led, export-driven industrial model and its impact on global prices. Meanwhile, Beijing has pushed back against US national security export controls, which it says are designed to limit Chinese tech growth.<h2>High-stakes timing for Trump and global markets</h2>The urgency is heightened by the political and economic backdrop. Trump’s administration is preparing to impose new sectoral tariffs in coming weeks, targeting semiconductors, pharmaceuticals, ship-to-shore cranes, and other industrial goods. On the Chinese side, control over rare earth minerals, used in military systems and EV components, remains a key bargaining chip. China has also renewed its push for tariff relief on US-imported fentanyl precursors, in exchange for fulfilling a 2020 pledge to purchase more American farm goods.&nbsp;“There’s a shared interest in avoiding escalation,” said Sun Chenghao, a fellow at Tsinghua University’s Center for International Security and Strategy, as quoted by Reuters. “A Trump-Xi summit would give both sides a political boost and a chance to pave the way toward real progress.”<h2>What’s next?</h2>If the Stockholm talks succeed, Washington and Beijing would likely announce a 90-day freeze on new tariffs, preventing automatic increases and maintaining the status quo through early November. But if the talks falter, both economies and global supply chains, could face renewed disruption.&nbsp;The prospect of a Trump visit to China is also hanging in the balance. A successful summit could unlock deeper reforms, but failure could plunge the two superpowers back into a full-blown economic standoff, just as Trump sharpens his re-election pitch and Xi faces domestic pressure over China’s sluggish recovery.&nbsp;(With inputs from the agencies)

Without an agreement by August 12, existing US tariffs on Chinese imports could escalate significantly. While previous talks led to temporary tariff pauses, core ideological issues remain unresolved. 

On Monday, the United States and China returned to the negotiating table, aiming to extend their fragile trade truce by another 90 days and stave off a new wave of tariffs that could destabilise global supply chains. Senior economic officials from both countries are meeting in Stockholm to hash out differences ahead of an August 12 deadline. Without a deal, existing US duties on Chinese goods could snap back to triple-digit levels, effectively triggering a new phase of the trade war. As per Reuters, the talks follow a series of preliminary deals in May and June that temporarily paused tariffs and export controls on sensitive goods like rare earths and AI chips. The new round is expected to focus on locking in the tariff ceasefire and setting the stage for a potential Trump–Xi summit later this year. Unlike the major US–EU trade agreement signed on Sunday, which introduced a 15 per cent tariff framework and $750 billion in energy purchases, the US–China talks are reportedly expected to produce only a temporary extension, not a full-blown deal. Trade analysts told Reuters that another 90-day pause is likely, which would allow both sides to avoid an escalation and maintain space for diplomacy. Such a truce would also help facilitate a meeting between President Donald Trump and Chinese President Xi Jinping, potentially in October or November. Deep-rooted issues remain untouched The discussions so far have been narrowly focused on halting retaliation. Talks in Geneva and London earlier this year dealt with tariff reductions and the resumption of rare earth and chip exports, but avoided the core ideological clash between the two economies. “The talks are not yet addressing the fundamental disagreements,” said Scott Kennedy, a China economics expert at the Center for Strategic and International Studies, as quoted by Reuters. “I’d be surprised if there is an early harvest… but an extension of the ceasefire for another 90 days seems the most likely outcome.” Among Washington’s long-standing concerns are China’s state-led, export-driven industrial model and its impact on global prices. Meanwhile, Beijing has pushed back against US national security export controls, which it says are designed to limit Chinese tech growth. High-stakes timing for Trump and global markets The urgency is heightened by the political and economic backdrop. Trump’s administration is preparing to impose new sectoral tariffs in coming weeks, targeting semiconductors, pharmaceuticals, ship-to-shore cranes, and other industrial goods. On the Chinese side, control over rare earth minerals, used in military systems and EV components, remains a key bargaining chip. China has also renewed its push for tariff relief on US-imported fentanyl precursors, in exchange for fulfilling a 2020 pledge to purchase more American farm goods. “There’s a shared interest in avoiding escalation,” said Sun Chenghao, a fellow at Tsinghua University’s Center for International Security and Strategy, as quoted by Reuters. “A Trump-Xi summit would give both sides a political boost and a chance to pave the way toward real progress.” What’s next? If the Stockholm talks succeed, Washington and Beijing would likely announce a 90-day freeze on new tariffs, preventing automatic increases and maintaining the status quo through early November. But if the talks falter, both economies and global supply chains, could face renewed disruption. The prospect of a Trump visit to China is also hanging in the balance. A successful summit could unlock deeper reforms, but failure could plunge the two superpowers back into a full-blown economic standoff, just as Trump sharpens his re-election pitch and Xi faces domestic pressure over China’s sluggish recovery. (With inputs from the agencies)

On Monday, US and China resumed trade negotiations in Stockholm, aiming for a 90-day extension of their trade truce to prevent new tariffs disrupting global supply chains.

US, China seek 90-day trade ceasefire in fresh round of talks

On Monday, gold prices held steady after slipping last week, as the newly signed US–EU trade deal reduced market uncertainty and dampened demand for traditional safe-haven assets like bullion. According to Bloomberg, spot gold was down 0.1 per cent at $3,332.67 an ounce by early Asian trading hours, after logging a 0.4 per cent weekly loss. Investors are recalibrating their positions following the transatlantic tariff agreement, which imposes 15 per cent levies on most EU exports, including cars and pharmaceuticals.&nbsp;The gold market has soared this year, up more than 25 per cent so far, which was majorly driven by geopolitical tensions in Ukraine and the West Asia, and fears of a global trade breakdown during Donald Trump’s second term as US President. But the breakthrough deal with Europe, and expectations of a US–China tariff truce extension, are now easing some of that anxiety. “While the US–EU pact avoids an immediate escalation, questions remain about implementation, especially on sensitive sectors like pharma and metals,” analysts noted, according to Bloomberg.<h2>Focus shifts to Fed and China talks</h2>The South China Morning Post reported that US–China negotiators may extend their tariff pause by another three months, with fresh talks kicking off in Stockholm on Monday. That adds to broader market optimism and shifts focus away from defensive plays like gold.&nbsp;At the same time, investors are bracing for a pivotal week of economic data and Federal Reserve commentary, which could signal the direction of interest rates. While the Fed is widely expected to hold rates steady, traders will be watching for any dovish tilt, as lower rates tend to boost non-yielding assets like gold.<h2>Market positioning still bullish</h2>Despite recent softness, sentiment around gold remains resilient. The latest data from the Commodity Futures Trading Commission (CFTC) shows that money managers have raised their bullish bets on gold to the highest in 16 weeks. Meanwhile, silver was little changed, while platinum and palladium posted modest gains. The Bloomberg Dollar Spot Index also dipped 0.1 per cent, offering slight support to commodities priced in dollars.&nbsp;Gold had spiked to an all-time high above $3,500 an ounce in April, amid peak fears over escalating conflicts and protectionist trade policies. While those risks have cooled slightly, the yellow metal remains a key barometer of global uncertainty — and markets aren’t letting their guard down just yet.&nbsp;(With inputs from the agencies)

With gold up over 25% this year due to geopolitical tensions, recent agreements ease investor anxiety. Traders anticipate Federal Reserve commentary this week, while bullish sentiment persists despite the market recent softness. Silver stayed stable, while platinum and palladium gained modestly.

On Monday, gold prices held steady after slipping last week, as the newly signed US–EU trade deal reduced market uncertainty and dampened demand for traditional safe-haven assets like bullion. According to Bloomberg, spot gold was down 0.1 per cent at $3,332.67 an ounce by early Asian trading hours, after logging a 0.4 per cent weekly loss. Investors are recalibrating their positions following the transatlantic tariff agreement, which imposes 15 per cent levies on most EU exports, including cars and pharmaceuticals. The gold market has soared this year, up more than 25 per cent so far, which was majorly driven by geopolitical tensions in Ukraine and the West Asia, and fears of a global trade breakdown during Donald Trump’s second term as US President. But the breakthrough deal with Europe, and expectations of a US–China tariff truce extension, are now easing some of that anxiety. “While the US–EU pact avoids an immediate escalation, questions remain about implementation, especially on sensitive sectors like pharma and metals,” analysts noted, according to Bloomberg. Focus shifts to Fed and China talks The South China Morning Post reported that US–China negotiators may extend their tariff pause by another three months, with fresh talks kicking off in Stockholm on Monday. That adds to broader market optimism and shifts focus away from defensive plays like gold. At the same time, investors are bracing for a pivotal week of economic data and Federal Reserve commentary, which could signal the direction of interest rates. While the Fed is widely expected to hold rates steady, traders will be watching for any dovish tilt, as lower rates tend to boost non-yielding assets like gold. Market positioning still bullish Despite recent softness, sentiment around gold remains resilient. The latest data from the Commodity Futures Trading Commission (CFTC) shows that money managers have raised their bullish bets on gold to the highest in 16 weeks. Meanwhile, silver was little changed, while platinum and palladium posted modest gains. The Bloomberg Dollar Spot Index also dipped 0.1 per cent, offering slight support to commodities priced in dollars. Gold had spiked to an all-time high above $3,500 an ounce in April, amid peak fears over escalating conflicts and protectionist trade policies. While those risks have cooled slightly, the yellow metal remains a key barometer of global uncertainty — and markets aren’t letting their guard down just yet. (With inputs from the agencies)

Gold prices remained steady after last week's decline, trading at $3,332.67 per ounce amidst reduced market uncertainty from the US–EU trade deal.

Gold eases as US–EU trade deal tempers haven demand

On Monday, oil markets found fresh momentum after the United States and European Union struck a long-awaited trade deal and signalled a potential extension of tariff relief with China. Together, the two trade talks developments eased fears of a global economic slowdown and lifted hopes for sustained fuel demand. As per Reuters, Brent crude futures rose 22 cents, or 0.32 per cent, to $68.66 a barrel, while US West Texas Intermediate crude climbed 22 cents, or 0.34 per cent, to $65.38 by early Asian trading hours.'&nbsp;Markets had been on edge amid fears that heightened US tariffs could dent global trade and energy demand. But Sunday’s EU–US framework trade agreement imposed only a 15 per cent tariff on most EU goods which is below the Trump's earlier threat of 30 per cent or more. That, along with fresh negotiations between the US and China in Stockholm, helped calm investor nerves. Talks are aimed at extending the tariff truce ahead of an August 12 deadline, giving energy markets another reason to breathe easy. “The US–EU deal and a possible US–China extension are supporting global financial markets and oil prices,” said Tony Sycamore, analyst at IG Markets, as quoted by Reuters.<h2>OPEC+ supply moves keep a lid on gains</h2>Despite Monday’s uptick, broader oil gains were limited by supply-side concerns. Meanwhile, a market-monitoring panel of OPEC+ nations is set to meet later on Monday and is unlikely to recommend changes to existing plans by eight member countries to boost production by 548,000 barrels per day in August, according to Reuters. The group is still focused on regaining market share while seasonal summer demand continues to absorb excess output.&nbsp;Meanwhile, in Venezuela, state-run oil company PDVSA is preparing to ramp up joint ventures once US President Donald Trump reinstates swap-based oil export authorisations. These licences were initially granted during the Biden era but were paused under Trump’s second term. PDVSA is ready to act once those licences are restored, according to company insiders.<h2>Geopolitical threats linger</h2>On Sunday, Yemen’s Houthi rebels issued a fresh warning. They threatened to target any ships tied to Israeli ports, regardless of nationality, as part of their ongoing retaliation over the Israel–Gaza conflict. This marks what the Houthis have termed the “fourth phase” of their campaign against Israel. While the Houthi threat hasn’t yet disrupted oil supply routes, it adds to a complex web of geopolitical risks that continue to influence crude prices.<h2>Demand fundamentals still strong</h2>According to J.P. Morgan, in July, the global oil demand rose by 600,000 barrels per day (bpd) compared to a year ago. However, global oil inventories also increased by 1.6 million bpd, signalling some excess supply remains in the system.Still, markets are betting that smoother trade flows, especially between the world’s largest economies, could keep oil demand stable as the year&nbsp;progresses.&nbsp;(With inputs from the agencies)&nbsp;

Brent crude rose 22 cents to $68.66 a barrel, and West Texas Intermediate climbed 22 cents to $65.38. However, supply concerns and OPEC+ production plans kept gains limited.

On Monday, oil markets found fresh momentum after the United States and European Union struck a long-awaited trade deal and signalled a potential extension of tariff relief with China. Together, the two trade talks developments eased fears of a global economic slowdown and lifted hopes for sustained fuel demand. As per Reuters, Brent crude futures rose 22 cents, or 0.32 per cent, to $68.66 a barrel, while US West Texas Intermediate crude climbed 22 cents, or 0.34 per cent, to $65.38 by early Asian trading hours.' Markets had been on edge amid fears that heightened US tariffs could dent global trade and energy demand. But Sunday’s EU–US framework trade agreement imposed only a 15 per cent tariff on most EU goods which is below the Trump's earlier threat of 30 per cent or more. That, along with fresh negotiations between the US and China in Stockholm, helped calm investor nerves. Talks are aimed at extending the tariff truce ahead of an August 12 deadline, giving energy markets another reason to breathe easy. “The US–EU deal and a possible US–China extension are supporting global financial markets and oil prices,” said Tony Sycamore, analyst at IG Markets, as quoted by Reuters. OPEC+ supply moves keep a lid on gains Despite Monday’s uptick, broader oil gains were limited by supply-side concerns. Meanwhile, a market-monitoring panel of OPEC+ nations is set to meet later on Monday and is unlikely to recommend changes to existing plans by eight member countries to boost production by 548,000 barrels per day in August, according to Reuters. The group is still focused on regaining market share while seasonal summer demand continues to absorb excess output. Meanwhile, in Venezuela, state-run oil company PDVSA is preparing to ramp up joint ventures once US President Donald Trump reinstates swap-based oil export authorisations. These licences were initially granted during the Biden era but were paused under Trump’s second term. PDVSA is ready to act once those licences are restored, according to company insiders. Geopolitical threats linger On Sunday, Yemen’s Houthi rebels issued a fresh warning. They threatened to target any ships tied to Israeli ports, regardless of nationality, as part of their ongoing retaliation over the Israel–Gaza conflict. This marks what the Houthis have termed the “fourth phase” of their campaign against Israel. While the Houthi threat hasn’t yet disrupted oil supply routes, it adds to a complex web of geopolitical risks that continue to influence crude prices. Demand fundamentals still strong According to J.P. Morgan, in July, the global oil demand rose by 600,000 barrels per day (bpd) compared to a year ago. However, global oil inventories also increased by 1.6 million bpd, signalling some excess supply remains in the system. Still, markets are betting that smoother trade flows, especially between the world’s largest economies, could keep oil demand stable as the year progresses. (With inputs from the agencies)

On Monday, oil markets gained momentum following a US-EU trade deal and potential extension of tariff relief with China, raising hopes for sustained fuel demand.

Oil prices rise as US–EU trade deal boosts market optimism

After several months of uncertainty, tariffs, and tense transatlantic back-and-forth, the United States and European Union have finally struck a major trade deal. Announced on Sunday, the framework agreement marks a reset in economic ties under President Donald Trump’s second term, and it’s set to reportedly impact industries from automobiles to semiconductors to liquefied natural gas (LNG). The deal doesn’t just settle some of the biggest tariff disputes, it also sets the tone for future investments, energy trade and even defence procurement.&nbsp;&nbsp;So, what’s in the deal? And who wins or loses? Here’s a closer look.<h2>What does the deal include?</h2>Under the new trade deal, almost all European Union goods entering the US will now face a flat 15 per cent baseline tariff. That includes automobiles, semiconductors, and pharmaceuticals sectors that previously saw much higher import duties. For instance, EU-made cars currently face a 27.5 per cent duty, which will now be more than halved.&nbsp;However, there’s a twist.&nbsp;According to European Commission President Ursula von der Leyen, the US is still finalising separate decisions under its controversial Section 232 national security trade investigations, especially on pharmaceuticals and chips. “Whatever U.S. decisions come later on these sectors will be ‘on a different sheet of paper’,” von der Leyen clarified, as quoted by Reuters. This means that while a 15 per cent tariff ceiling is agreed upon, sectors like chips and drugs might still face special treatment later.<h2>Zero tariffs on aircraft, raw materials, and more</h2>There’s also some good news for specific sectors as both sides agreed to zero-for-zero tariffs on a range of goods. These include the following given things:<ul><li>All aircraft and aircraft components</li><li>Certain chemicals and generic medicines</li><li>Semiconductor equipment</li><li>Selected agricultural products</li><li>Critical raw materials and natural resources</li></ul>The deal also reportedly leaves the door open to expanding the list. However, tariffs on spirits, a major export for both sides, are still “to be established”.<h2>What about Steel &amp; Aluminum?</h2>On the other hand, there’s no relief on metals yet.&nbsp;US tariffs on European steel and aluminium will remain at 50 per cent, at least for now. But according to von der Leyen, these duties will eventually be reduced and converted into a quota-based system, which would cap volumes but offer tariff relief and will reportedly be a compromise often used in sensitive sectors.<h2>$750B LNG deal &amp; Defence&nbsp;</h2>In one of the most strategic parts of the agreement, the EU committed to purchasing $250 billion worth of US liquefied natural gas (LNG) annually for three years, replacing its now-curtailed Russian gas imports. That adds up to $750 billion in total purchases. This is a massive boost for US energy exporters. The EU also pledged to source nuclear fuel from the US, marking a deepening of its energy security ties with Washington.&nbsp;The deal doesn’t stop at trade. Europe also agreed to ramp up defence cooperation. The EU will buy US-made military equipment, though the full list is yet to be disclosed. In return, European companies are set to invest $600 billion in the United States over the course of Trump’s second term, providing a major boost to US manufacturing and tech. As per Reuters, this clause aims to re-anchor EU supply chains in the US and bolster Trump’s “America First” industrial policy, particularly in strategic sectors like clean tech, AI chips, and advanced machinery.<h2>So, who wins?</h2>For US exporters, especially those in the LNG, aerospace, defence, and semiconductor equipment sectors, this deal is a windfall. Energy majors like Cheniere Energy and ExxonMobil could see massive gains from the LNG commitment. European automakers, meanwhile, finally have tariff clarity, though they still face a 15 per cent barrier. That’s better than 27.5 per cent, but still a significant cost in a competitive market.&nbsp;Consumers on both sides of the Atlantic might feel the pinch in the short term, especially as prices adjust to the new tariff regime. But longer-term, reduced trade friction may lead to smoother supply chains and price stabilisation.<h2>What’s next?</h2>Though Trump hailed the deal by calling it as a “historic win for American workers and security”, while EU leaders framed it as a pragmatic compromise in a changing global order.&nbsp;Implementation will take months. Some clauses like the steel quota plan or chip tariff clarifications are still pending. But the broad contours are now set before the August 1 deadline.&nbsp;&nbsp;In an era of tariff wars, energy insecurity, and shifting alliances, this deal brings rare predictability and perhaps a sign that Brussels and Washington can still do business, even under pressure.&nbsp;(With inputs from the agencies)&nbsp;

The agreement introduces a 15% baseline tariff on most EU goods entering the US, cutting previous automobile and semiconductor duties. Key sectors like pharmaceuticals might face different treatment later. Zero tariffs apply to aircraft and certain chemicals. 

After several months of uncertainty, tariffs, and tense transatlantic back-and-forth, the United States and European Union have finally struck a major trade deal. Announced on Sunday, the framework agreement marks a reset in economic ties under President Donald Trump’s second term, and it’s set to reportedly impact industries from automobiles to semiconductors to liquefied natural gas (LNG). The deal doesn’t just settle some of the biggest tariff disputes, it also sets the tone for future investments, energy trade and even defence procurement. So, what’s in the deal? And who wins or loses? Here’s a closer look. What does the deal include? Under the new trade deal, almost all European Union goods entering the US will now face a flat 15 per cent baseline tariff. That includes automobiles, semiconductors, and pharmaceuticals sectors that previously saw much higher import duties. For instance, EU-made cars currently face a 27.5 per cent duty, which will now be more than halved. However, there’s a twist. According to European Commission President Ursula von der Leyen, the US is still finalising separate decisions under its controversial Section 232 national security trade investigations, especially on pharmaceuticals and chips. “Whatever U.S. decisions come later on these sectors will be ‘on a different sheet of paper’,” von der Leyen clarified, as quoted by Reuters. This means that while a 15 per cent tariff ceiling is agreed upon, sectors like chips and drugs might still face special treatment later. Zero tariffs on aircraft, raw materials, and more There’s also some good news for specific sectors as both sides agreed to zero-for-zero tariffs on a range of goods. These include the following given things: All aircraft and aircraft components Certain chemicals and generic medicines Semiconductor equipment Selected agricultural products Critical raw materials and natural resources The deal also reportedly leaves the door open to expanding the list. However, tariffs on spirits, a major export for both sides, are still “to be established”. What about Steel & Aluminum? On the other hand, there’s no relief on metals yet. US tariffs on European steel and aluminium will remain at 50 per cent, at least for now. But according to von der Leyen, these duties will eventually be reduced and converted into a quota-based system, which would cap volumes but offer tariff relief and will reportedly be a compromise often used in sensitive sectors. $750B LNG deal & Defence In one of the most strategic parts of the agreement, the EU committed to purchasing $250 billion worth of US liquefied natural gas (LNG) annually for three years, replacing its now-curtailed Russian gas imports. That adds up to $750 billion in total purchases. This is a massive boost for US energy exporters. The EU also pledged to source nuclear fuel from the US, marking a deepening of its energy security ties with Washington. The deal doesn’t stop at trade. Europe also agreed to ramp up defence cooperation. The EU will buy US-made military equipment, though the full list is yet to be disclosed. In return, European companies are set to invest $600 billion in the United States over the course of Trump’s second term, providing a major boost to US manufacturing and tech. As per Reuters, this clause aims to re-anchor EU supply chains in the US and bolster Trump’s “America First” industrial policy, particularly in strategic sectors like clean tech, AI chips, and advanced machinery. So, who wins? For US exporters, especially those in the LNG, aerospace, defence, and semiconductor equipment sectors, this deal is a windfall. Energy majors like Cheniere Energy and ExxonMobil could see massive gains from the LNG commitment. European automakers, meanwhile, finally have tariff clarity, though they still face a 15 per cent barrier. That’s better than 27.5 per cent, but still a significant cost in a competitive market. Consumers on both sides of the Atlantic might feel the pinch in the short term, especially as prices adjust to the new tariff regime. But longer-term, reduced trade friction may lead to smoother supply chains and price stabilisation. What’s next? Though Trump hailed the deal by calling it as a “historic win for American workers and security”, while EU leaders framed it as a pragmatic compromise in a changing global order. Implementation will take months. Some clauses like the steel quota plan or chip tariff clarifications are still pending. But the broad contours are now set before the August 1 deadline. In an era of tariff wars, energy insecurity, and shifting alliances, this deal brings rare predictability and perhaps a sign that Brussels and Washington can still do business, even under pressure. (With inputs from the agencies)

The US and EU have reached a significant trade deal, resetting economic relations amid tariffs and disputes.

EU–US trade deal 2025: What it means for cars, chips, LNG and your wallet?

France’s finance minister has issued a stark warning that the European Union could face sharply higher US tariffs within days if negotiators fail to strike a deal with Washington, underscoring rising transatlantic trade tensions that risk hurting European industry.&nbsp;Speaking at an economic forum in Aix-en-Provence on Saturday, French Finance Minister Eric Lombard said he hoped talks between EU and US officials taking place over the weekend would succeed in averting the threatened tariff hikes before a critical July 9 deadline “On tariffs, it could all be decided this weekend,” Lombard said, as quoted by AFP. “If not, Europe will undoubtedly have to respond more vigorously to restore the balance.”<h2>Steep tariff snapback deadline</h2>According to AFP reporting, if no agreement is reached by Wednesday next week, higher levies on European exports to the US will automatically come back into force. The default tariff on EU imports is set to double to 20 per cent or even higher, with US President Donald Trump at one point threatening duties as high as 50 per cent. Talks between Brussels and Washington this weekend are seen as a last-ditch effort to avoid a trade escalation that could hit European exporters hard at a time of already slowing economic growth in the eurozone.&nbsp;European Commission President Ursula von der Leyen said on Thursday that Brussels was aiming for an “agreement in principle,” though she cautioned that even such a deal would require further negotiations to finalise the details, AFP reported. However, the Commission has also warned that even with an agreement, there may still be an imbalance in trade measures between the EU and the US.<h2>France vows to defend industry</h2>At the Aix-en-Provence forum, Lombard warned that Europe must be prepared to defend its industrial base not just from US tariffs but also from China’s industrial overcapacity. “It is essential to protect our industry from the US and China,” he said, according to AFP.&nbsp;Using stark imagery, Lombard likened the global trade environment to a playground where rules were being upended by aggressive economic powers. “Imagine the world as a playground where everyone is playing… and following the rules,” he said. “And then three bullies come along and don’t follow any rules, they knock over the game tables and push around the children who were playing nicely. That’s the world of predators,” he added, naming the US, Russia, and China as examples.<h2>Concerns about Chinese overcapacity</h2>Lombard also argued that existing tariffs on sectors like steel and automotive goods were not enough to counter China’s industrial strategy.“We need to do it across all our industrial sectors,” he said, warning that China’s policy of maintaining production capacity exceeding 50 per cent of global market share in key industrial segments risked “destroying our industry.”<h2>High-stakes test for Brussels</h2>The tariff deadline comes at a politically sensitive moment for Brussels. European leaders have been under pressure to show they can defend EU economic interests while avoiding a costly trade war with Washington, even as relations with Beijing grow more strained over issues such as green technology competition and human rights.&nbsp;A failure to strike a deal would risk exposing European manufacturers to steep US tariffs just as they face growing competition from China’s subsidised industries. As reported by AFP, EU negotiators are racing to finalise an agreement in the coming days in order to avert the tariff snapback and head off another transatlantic trade conflict.&nbsp;(With inputs from the agencies)&nbsp;

Talks over the weekend are crucial to avoid a July 9 deadline. If no deal is reached, tariffs on EU exports to the US might double, impacting economies already strained. 

France’s finance minister has issued a stark warning that the European Union could face sharply higher US tariffs within days if negotiators fail to strike a deal with Washington, underscoring rising transatlantic trade tensions that risk hurting European industry. Speaking at an economic forum in Aix-en-Provence on Saturday, French Finance Minister Eric Lombard said he hoped talks between EU and US officials taking place over the weekend would succeed in averting the threatened tariff hikes before a critical July 9 deadline “On tariffs, it could all be decided this weekend,” Lombard said, as quoted by AFP. “If not, Europe will undoubtedly have to respond more vigorously to restore the balance.” Steep tariff snapback deadline According to AFP reporting, if no agreement is reached by Wednesday next week, higher levies on European exports to the US will automatically come back into force. The default tariff on EU imports is set to double to 20 per cent or even higher, with US President Donald Trump at one point threatening duties as high as 50 per cent. Talks between Brussels and Washington this weekend are seen as a last-ditch effort to avoid a trade escalation that could hit European exporters hard at a time of already slowing economic growth in the eurozone. European Commission President Ursula von der Leyen said on Thursday that Brussels was aiming for an “agreement in principle,” though she cautioned that even such a deal would require further negotiations to finalise the details, AFP reported. However, the Commission has also warned that even with an agreement, there may still be an imbalance in trade measures between the EU and the US. France vows to defend industry At the Aix-en-Provence forum, Lombard warned that Europe must be prepared to defend its industrial base not just from US tariffs but also from China’s industrial overcapacity. “It is essential to protect our industry from the US and China,” he said, according to AFP. Using stark imagery, Lombard likened the global trade environment to a playground where rules were being upended by aggressive economic powers. “Imagine the world as a playground where everyone is playing… and following the rules,” he said. “And then three bullies come along and don’t follow any rules, they knock over the game tables and push around the children who were playing nicely. That’s the world of predators,” he added, naming the US, Russia, and China as examples. Concerns about Chinese overcapacity Lombard also argued that existing tariffs on sectors like steel and automotive goods were not enough to counter China’s industrial strategy. “We need to do it across all our industrial sectors,” he said, warning that China’s policy of maintaining production capacity exceeding 50 per cent of global market share in key industrial segments risked “destroying our industry.” High-stakes test for Brussels The tariff deadline comes at a politically sensitive moment for Brussels. European leaders have been under pressure to show they can defend EU economic interests while avoiding a costly trade war with Washington, even as relations with Beijing grow more strained over issues such as green technology competition and human rights. A failure to strike a deal would risk exposing European manufacturers to steep US tariffs just as they face growing competition from China’s subsidised industries. As reported by AFP, EU negotiators are racing to finalise an agreement in the coming days in order to avert the tariff snapback and head off another transatlantic trade conflict. (With inputs from the agencies)

France hopes that the EU could face significant US tariffs imminently if negotiators fail to reach an agreement with Washington, highlighting escalating trade tensions that threaten European industries.

France presses for EU–US tariff deal before deadline

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce.&nbsp;As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters.&nbsp; “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise.<h2>Internal EU divisions complicate talks</h2>The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth.&nbsp;According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge.<h2>Tariffs overshadow broader summit agenda</h2>The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings.&nbsp;The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities.<h2>Ukraine pressures Europe for stronger stance</h2>Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership.&nbsp;“What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade.<h2>Uncertain path ahead</h2>As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting.&nbsp;With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage.&nbsp;(With inputs from the agencies)&nbsp;

European Commission President Ursula von der Leyen presented a basic outline of the US offer, which seeks a more straightforward agreement rather than detailed sector by sector negotiations. 

European Union leaders gathered in Brussels on Thursday to discuss fresh trade proposals from the United States, with just two weeks left before a tariff truce expires and the spectre of 50 per cent US import duties returns to threaten transatlantic commerce. As per Reuters, European Commission President Ursula von der Leyen presented the “outline” of the new US offer to heads of state and government at the summit, though officials did not reveal specific details. One EU diplomat described the proposal as a “two-pager, principle agreement” and said Washington was keen to avoid negotiating sector-by-sector commitments, as quoted by Reuters. “We only have two weeks left – so we should go for something like that, like Brazil and Britain,” the diplomat added, alluding to simpler trade frameworks struck by other countries with the US. But divisions across the EU remain stark, with France pushing for a tougher line while Italy leans towards compromise. Internal EU divisions complicate talks The split within Europe’s largest economies has become increasingly visible. German Chancellor Friedrich Merz earlier this week urged the bloc to move quickly and prioritise a “faster” and “simpler” trade deal with Washington. In contrast, French officials argued that Brussels should hold out for stronger terms, particularly on opening up US services markets, as per Reuters. The stakes are high. President Donald Trump has threatened to raise tariffs on EU goods to 50 per cent if a new agreement cannot be reached before the July 9 deadline, reigniting fears of a transatlantic trade war at a time when European economies are already battling high inflation and sluggish growth. According to Reuters, the European Commission is trying to find common ground among the 27 member states but achieving a unified position before the deadline remains a significant diplomatic challenge. Tariffs overshadow broader summit agenda The Brussels summit had originally been intended to cover a wider range of pressing issues, from Europe’s security posture to its fraught relationship with Russia but trade tensions with Washington quickly dominated proceedings. The meeting followed a tense NATO summit earlier in the week, where alliance members agreed to raise defence spending significantly. However, that commitment exposed rifts within Europe, with some states privately admitting they cannot afford the new targets. Spain has reportedly demanded an explicit opt-out, highlighting the strains on national budgets amid competing priorities. Ukraine pressures Europe for stronger stance Meanwhile, the war in Ukraine cast a long shadow over the summit’s agenda. Ukrainian President Volodymyr Zelenskiy addressed EU leaders directly, calling for a fresh round of sanctions on Russia that would target its oil exports and banking sector. He also demanded a clear, unequivocal message of support for Ukraine’s future EU membership. “What’s needed now is a clear political message – that Ukraine is firmly on the European path, and that Europe stands by its promises,” Zelenskiy told the gathering, as quoted by Reuters. “Any delay by Europe at this point could create a global precedent – a reason to doubt Europe’s words and commitments.” Yet even on this front, divisions persist. Hungary remains firmly opposed to offering Ukraine a clear accession path or adopting new sanctions on Russian energy trade. Uncertain path ahead As the Brussels talks adjourned without a final decision on the US trade proposal, time is rapidly running out for Europe to strike a deal that would avert punishing new tariffs. European officials say they will continue negotiations in the coming days, but the challenge of reconciling internal divisions while bargaining with the Trump administration’s hardline stance remains daunting. With transatlantic relations at risk of fresh trade turmoil, and Ukraine’s war effort demanding ever more support, EU leaders face a difficult balancing act as they seek to project unity and resolve on the global stage. (With inputs from the agencies)

EU leaders met in Brussels to discuss US trade proposals as a tariff truce approaches its end, risking 50% US import duties.

EU leaders weigh US trade offer as tariff deadline looms

The United States and the European Union are close to finalising a deal that addresses a raft of long-standing non-tariff trade frictions, including climate regulations, digital market rules, and supply chain concerns.&nbsp;&nbsp;However, key tariff-related issues, including those threatened or imposed under President Donald Trump remain unresolved ahead of a critical July deadline.&nbsp;&nbsp;The developments were first reported by Bloomberg, citing a draft agreement circulated by the Office of the US Trade Representative (USTR).<h2>What’s in the draft deal?</h2>According to Bloomberg, the draft “agreement on reciprocal trade” outlines tentative compromises on multiple regulatory fronts. The EU has agreed to delay enforcement of its new deforestation regulation for one year, giving global companies more time to comply.&nbsp;&nbsp;The policy requires importers to prove their products are not linked to deforestation, a regulation that has faced resistance from US exporters and European businesses alike. The delay had already been internally decided by the EU last year but now forms part of the broader trade dialogue.&nbsp;The draft also includes provisions to pause enforcement of the EU’s Digital Markets Act (DMA) on major American tech platforms while structured negotiations are ongoing. The DMA, one of the EU’s flagship digital competition laws, has already resulted in hefty fines for US firms such as Apple and Meta.&nbsp;&nbsp;The exemption would ease transatlantic tensions over what Washington has called discriminatory enforcement.&nbsp;Another key clause in the draft agreement offers US products a one-year exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM), a climate tariff designed to reflect the carbon intensity of imports. This exemption would give US exporters temporary relief from one of Europe’s most contentious climate policies.&nbsp;The agreement further proposes exemptions for US energy exports from upcoming EU methane rules and suggests that both parties coordinate their policies on shipbuilding and maritime shipping. Specifically, the EU would consider adopting measures similar to US penalties targeting non-market economies, particularly China.&nbsp;&nbsp;The draft text also encourages joint efforts on defence procurement and critical minerals, highlighting a shared commitment to reduce dependency on Chinese supply chains. As reported by Bloomberg, the overall aim is to streamline transatlantic coordination on strategic industries.<h2>Tariff tensions still unresolved</h2>Despite progress on regulatory matters, the draft agreement reportedly omits any resolution of US–EU tariff disputes.&nbsp;&nbsp;As per Bloomberg, it does not mention the 20 per cent reciprocal tariff that President Trump threatened and temporarily paused in April nor does it address ongoing duties on EU steel, aluminium, and automotive exports.&nbsp;&nbsp;Likewise, the agreement does not include a response to the EU’s planned retaliatory tariffs, scheduled to take effect on 14 July if no deal is reached.&nbsp;While negotiations continue, it remains unclear whether tariff issues are being handled in a parallel track or have stalled.&nbsp;&nbsp;According to Bloomberg, US Trade Representative Jamieson Greer earlier described the EU’s initial proposal which included offers to buy more US goods like liquefied natural gas as a “credible starting point.” However, the most recent draft agreement appears focused solely on non-tariff barriers.&nbsp;European officials have told Bloomberg that any deal perceived as offering one-sided concessions to the US would face public and political resistance.&nbsp;&nbsp;Some have also signalled that maintaining Trump’s baseline 10 per cent tariffs could be a red line, though expectations are growing that these tariffs may not be removed under any circumstances, given Trump’s public defence of tariff revenue as a national economic tool.<h2>Why it matters?</h2>The agreement, if finalised, would mark a significant step toward easing transatlantic trade tensions in non-tariff areas that have burdened US exporters, especially in technology and energy.&nbsp;&nbsp;It also reflects growing alignment on environmental and industrial policy in response to Chinese trade practices.&nbsp;However, the absence of a tariff breakthrough underscores the deep political and economic divide that still defines US–EU trade relations.&nbsp;&nbsp;As quoted by Bloomberg, an EU spokesperson confirmed that both sides remain “fully and deeply engaged in negotiations,” but stopped short of confirming agreement on the full text.&nbsp;&nbsp;With President Trump’s 9 July tariff deadline approaching and the EU’s retaliatory measures due shortly after, the clock is ticking for a comprehensive settlement that addresses both regulatory and tariff concerns.&nbsp;&nbsp;(With inputs from the agencies) &nbsp;

US–EU trade pact nears finalisation with compromises on climate rules, digital markets, and supply chains. But major tariff disputes, including Trump threatened duties, remain unresolved as July deadlines loom.

The United States and the European Union are close to finalising a deal that addresses a raft of long-standing non-tariff trade frictions, including climate regulations, digital market rules, and supply chain concerns. However, key tariff-related issues, including those threatened or imposed under President Donald Trump remain unresolved ahead of a critical July deadline. The developments were first reported by Bloomberg, citing a draft agreement circulated by the Office of the US Trade Representative (USTR). What’s in the draft deal? According to Bloomberg, the draft “agreement on reciprocal trade” outlines tentative compromises on multiple regulatory fronts. The EU has agreed to delay enforcement of its new deforestation regulation for one year, giving global companies more time to comply. The policy requires importers to prove their products are not linked to deforestation, a regulation that has faced resistance from US exporters and European businesses alike. The delay had already been internally decided by the EU last year but now forms part of the broader trade dialogue. The draft also includes provisions to pause enforcement of the EU’s Digital Markets Act (DMA) on major American tech platforms while structured negotiations are ongoing. The DMA, one of the EU’s flagship digital competition laws, has already resulted in hefty fines for US firms such as Apple and Meta. The exemption would ease transatlantic tensions over what Washington has called discriminatory enforcement. Another key clause in the draft agreement offers US products a one-year exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM), a climate tariff designed to reflect the carbon intensity of imports. This exemption would give US exporters temporary relief from one of Europe’s most contentious climate policies. The agreement further proposes exemptions for US energy exports from upcoming EU methane rules and suggests that both parties coordinate their policies on shipbuilding and maritime shipping. Specifically, the EU would consider adopting measures similar to US penalties targeting non-market economies, particularly China. The draft text also encourages joint efforts on defence procurement and critical minerals, highlighting a shared commitment to reduce dependency on Chinese supply chains. As reported by Bloomberg, the overall aim is to streamline transatlantic coordination on strategic industries. Tariff tensions still unresolved Despite progress on regulatory matters, the draft agreement reportedly omits any resolution of US–EU tariff disputes. As per Bloomberg, it does not mention the 20 per cent reciprocal tariff that President Trump threatened and temporarily paused in April nor does it address ongoing duties on EU steel, aluminium, and automotive exports. Likewise, the agreement does not include a response to the EU’s planned retaliatory tariffs, scheduled to take effect on 14 July if no deal is reached. While negotiations continue, it remains unclear whether tariff issues are being handled in a parallel track or have stalled. According to Bloomberg, US Trade Representative Jamieson Greer earlier described the EU’s initial proposal which included offers to buy more US goods like liquefied natural gas as a “credible starting point.” However, the most recent draft agreement appears focused solely on non-tariff barriers. European officials have told Bloomberg that any deal perceived as offering one-sided concessions to the US would face public and political resistance. Some have also signalled that maintaining Trump’s baseline 10 per cent tariffs could be a red line, though expectations are growing that these tariffs may not be removed under any circumstances, given Trump’s public defence of tariff revenue as a national economic tool. Why it matters? The agreement, if finalised, would mark a significant step toward easing transatlantic trade tensions in non-tariff areas that have burdened US exporters, especially in technology and energy. It also reflects growing alignment on environmental and industrial policy in response to Chinese trade practices. However, the absence of a tariff breakthrough underscores the deep political and economic divide that still defines US–EU trade relations. As quoted by Bloomberg, an EU spokesperson confirmed that both sides remain “fully and deeply engaged in negotiations,” but stopped short of confirming agreement on the full text. With President Trump’s 9 July tariff deadline approaching and the EU’s retaliatory measures due shortly after, the clock is ticking for a comprehensive settlement that addresses both regulatory and tariff concerns. (With inputs from the agencies)

The US and EU are nearing a trade deal easing key regulatory frictions, but tariff disputes—especially Trump-era duties—remain unresolved ahead of July deadlines, Bloomberg reports.

US–EU near trade deal, but tariff rift remains: Details here

Back in 2016, German Chancellor Angela Merkel greeted Donald Trump's victory with an extraordinary warning: that she would work with the US president on the condition that he respect democratic values. Things did not improve from there.

Four years later, Trump's abrasive foreign policy moves, often unveiled in all-caps tweets, have alienated not just Germany but much of Europe.

"The transatlantic relationship is practically on life support," said Sudha David-Wilp, a senior transatlantic fellow at the German Marshall Fund of the United States.

Even if Democratic challenger Joe Biden wins the November 3 election, experts said there will be no magical healing of the EU-US rift.

Recent surveys by the Pew Research Center found that America's image among Europeans has plummeted to record lows, with just 26 percent of Germans now holding a favourable view of the superpower.

The "harsh judgement" can be partly attributed to the widespread belief that the Trump administration "mishandled the coronavirus", said Bruce Stokes, an associate fellow at Chatham House, a British think-tank.

"Europeans look at America and think there are a lot of domestic issues that are just breaking the country apart and how can it be a good partner (at such a time)?" added David-Wilp.

- 'A foe' -

From pulling out of the Paris Climate Agreement and the Iran nuclear deal to slapping tariffs on EU steel and aluminium, and defanging the World Trade Organization, Trump has dealt blow after blow to multilateralism, a much-valued European approach to global challenges.

He stunned allies by describing the European Union as a foe on trade, and "scared people" by cosying up to Russia, Stokes said.

Germany, which currently holds the EU presidency, has been a regular target of Trump's anger, often over its failure to meet NATO's defence spending targets.

But on a personal level too, there is no love lost between Europe's most powerful woman, who is leaving office next year, and the real estate tycoon in the White House.

Unlike French President Emmanuel Macron who tried to woo Trump with a military parade and a dazzling Eiffel Tower dinner before ties soured, Merkel never went out of her way to court the mercurial American.

Relations turned even frostier in June after she rebuffed an invite for a G7 event in Washington over coronavirus concerns. Soon after, Trump announced he was slashing the number of US troops stationed in Germany.

"He has real trouble dealing with strong women," Stokes said.

But Trump has made some friends on the continent. Hungarian premier Viktor Orban, who shares his anti-immigrant sentiment, is openly backing him for reelection.

Poland, which stands to benefit from Trump's troop reshuffle, has experienced "a US re-engagement" and shares Washington's opposition to the controversial Nord Stream 2 pipeline between Russia and Germany, said Justyna Gotkowska from the Centre for Eastern Studies (OSW).

- If Biden wins -

Should Biden win, he "will see the need to revitalise relationships with allies," said David-Wilp.

Expect the former vice president to make a trip to Europe early on, rejoin the climate pact and restart nuclear talks with Iran, experts say.

But areas of friction will remain on military spending, Nord Stream 2, and Washington's campaign against Chinese tech giant Huawei.

Faced with a Covid-19 battered economy, Biden will probably eschew Trump's more protectionist tendencies but some sort of "America First" vision for sensitive industries will likely live on.

"Europeans have to understand that a Biden administration is going to be so domestically preoccupied," said Stokes.

The career politician is therefore expected to surround himself with seasoned foreign policy officials who will "even more than normally" be relied upon "to pull things back together, but hopefully also chart a new course" with Brussels, he added.

Should Trump be reelected, expect "a great sucking in of breath" across European capitals, Stokes said, and "another four years of a very rocky ride".

But even under Trump 2.0, it is "entirely possible" for the US and EU to form a united front when it's in their self-interest on issues such as the coronavirus or China policy, Stokes said.

Peter Beyer, Merkel's transatlantic coordinator, recently told AFP that a "new Cold War" between Washington and Beijing had already begun, and that Europe should "stand shoulder-to-shoulder" with the US to face a rising China.

- 'Jolted' -

An unintended side effect of the Trump turbulence has been the growing realisation that Europe must speak and act more as one.

"Trump definitely jolted things," said David-Wilp.

The bloc's successful negotiation of a huge coronavirus stimulus package, spearheaded by Merkel and Macron, suggests a new impetus for closer cooperation and a reinvigorated German-Franco partnership.

Trump's attacks painting Europeans as taking advantage of the US have spurred higher NATO contributions, and a greater acceptance of burden-sharing on security issues.

There are plenty of obstacles ahead for the 27-member club with its disparate interests, not least the impending Brexit turmoil and elections looming in key member states.

"But if one wants to say the glass is half-full, the Trump presidency may have helped accelerate European unity," Stokes said.

Back in 2016, German Chancellor Angela Merkel greeted Donald Trump's victory with an extraordinary warning: that she would work with the US president on the condition that he respect democratic values.

Back in 2016, German Chancellor Angela Merkel greeted Donald Trump's victory with an extraordinary warning: that she would work with the US president on the condition that he respect democratic values. Things did not improve from there. Four years later, Trump's abrasive foreign policy moves, often unveiled in all-caps tweets, have alienated not just Germany but much of Europe. "The transatlantic relationship is practically on life support," said Sudha David-Wilp, a senior transatlantic fellow at the German Marshall Fund of the United States. Even if Democratic challenger Joe Biden wins the November 3 election, experts said there will be no magical healing of the EU-US rift. Recent surveys by the Pew Research Center found that America's image among Europeans has plummeted to record lows, with just 26 percent of Germans now holding a favourable view of the superpower. The "harsh judgement" can be partly attributed to the widespread belief that the Trump administration "mishandled the coronavirus", said Bruce Stokes, an associate fellow at Chatham House, a British think-tank. "Europeans look at America and think there are a lot of domestic issues that are just breaking the country apart and how can it be a good partner (at such a time)?" added David-Wilp. - 'A foe' - From pulling out of the Paris Climate Agreement and the Iran nuclear deal to slapping tariffs on EU steel and aluminium, and defanging the World Trade Organization, Trump has dealt blow after blow to multilateralism, a much-valued European approach to global challenges. He stunned allies by describing the European Union as a foe on trade, and "scared people" by cosying up to Russia, Stokes said. Germany, which currently holds the EU presidency, has been a regular target of Trump's anger, often over its failure to meet NATO's defence spending targets. But on a personal level too, there is no love lost between Europe's most powerful woman, who is leaving office next year, and the real estate tycoon in the White House. Unlike French President Emmanuel Macron who tried to woo Trump with a military parade and a dazzling Eiffel Tower dinner before ties soured, Merkel never went out of her way to court the mercurial American. Relations turned even frostier in June after she rebuffed an invite for a G7 event in Washington over coronavirus concerns. Soon after, Trump announced he was slashing the number of US troops stationed in Germany. "He has real trouble dealing with strong women," Stokes said. But Trump has made some friends on the continent. Hungarian premier Viktor Orban, who shares his anti-immigrant sentiment, is openly backing him for reelection. Poland, which stands to benefit from Trump's troop reshuffle, has experienced "a US re-engagement" and shares Washington's opposition to the controversial Nord Stream 2 pipeline between Russia and Germany, said Justyna Gotkowska from the Centre for Eastern Studies (OSW). - If Biden wins - Should Biden win, he "will see the need to revitalise relationships with allies," said David-Wilp. Expect the former vice president to make a trip to Europe early on, rejoin the climate pact and restart nuclear talks with Iran, experts say. But areas of friction will remain on military spending, Nord Stream 2, and Washington's campaign against Chinese tech giant Huawei. Faced with a Covid-19 battered economy, Biden will probably eschew Trump's more protectionist tendencies but some sort of "America First" vision for sensitive industries will likely live on. "Europeans have to understand that a Biden administration is going to be so domestically preoccupied," said Stokes. The career politician is therefore expected to surround himself with seasoned foreign policy officials who will "even more than normally" be relied upon "to pull things back together, but hopefully also chart a new course" with Brussels, he added. Should Trump be reelected, expect "a great sucking in of breath" across European capitals, Stokes said, and "another four years of a very rocky ride". But even under Trump 2.0, it is "entirely possible" for the US and EU to form a united front when it's in their self-interest on issues such as the coronavirus or China policy, Stokes said. Peter Beyer, Merkel's transatlantic coordinator, recently told AFP that a "new Cold War" between Washington and Beijing had already begun, and that Europe should "stand shoulder-to-shoulder" with the US to face a rising China. - 'Jolted' - An unintended side effect of the Trump turbulence has been the growing realisation that Europe must speak and act more as one. "Trump definitely jolted things," said David-Wilp. The bloc's successful negotiation of a huge coronavirus stimulus package, spearheaded by Merkel and Macron, suggests a new impetus for closer cooperation and a reinvigorated German-Franco partnership. Trump's attacks painting Europeans as taking advantage of the US have spurred higher NATO contributions, and a greater acceptance of burden-sharing on security issues. There are plenty of obstacles ahead for the 27-member club with its disparate interests, not least the impending Brexit turmoil and elections looming in key member states. "But if one wants to say the glass is half-full, the Trump presidency may have helped accelerate European unity," Stokes said.

EU-US alliance 'on life support' after four years of Trump

France said on Tuesday it will call on the European Commission to suspend negotiations on a massive trade deal between the European Union and the United States, which it complained are unfairly weighted in favour of the Americans. 
 
&quot;There is no more political support in France for these negotiations&quot; and &quot;France calls for an end to these negotiations,&quot; the country&#39;s junior minister for trade Matthias Fekl told RMC radio. 
 
The EU and US began work on the Transatlantic Trade and Investment Partnership (TTIP) in 2013, aiming to create the world&#39;s largest free-trade area by the time President Barack Obama leaves office in January. 
 
But the talks have got bogged down amid widespread suspicion in the 28-nation EU that a deal would undercut the bloc&#39;s standards in key areas such as health and welfare. 
 
The setbacks have raised serious doubts that it will be achieved by the end of the year as hoped.&nbsp; 
 
Fekl said there is an imbalance in the negotiations in favour of the US side. 
 
&quot;The Americans give nothing or just crumbs... that is not how negotiations are done between allies,&quot; he said. 
 
&quot;We need a clear and definitive halt to these negotiations in order to restart on a good foundation&quot;. 
 
France will make this case at a meeting of foreign trade ministers in Bratislava in September, Fekl added. 
 
He did not indicate when or under what conditions the talks could restart. 
 
France&#39;s Prime Minister Manuel Valls has said it would be &quot;impossible&quot; for the two sides to conclude negotiations on a trade deal by the end of 2016. 
 
And Germany&#39;s vice chancellor and economy minister Sigmar Gabriel said on Sunday that the negotiations were effectively dead in the water. 
 
&quot;The talks with the US have de facto failed because we Europeans of course must not succumb to American demands... Nothing is moving forward&quot;, he said. 
 
But the European Commission on Monday rejected the German claims and insisted the talks remained on track. 
 
&quot;The ball is rolling right now. The Commission is making steady progress,&quot; Commission spokesman Margaritis Schinas said. 
 
&quot;Talks are now indeed entering a crucial stage but... provided the conditions are right, the Commission stands ready to close this deal by the end of the year,&quot; he told a press briefing. 
 
Behind the scenes, top diplomats have told AFP talks may be suspended until after the US presidential election in November as well as elections in France and Germany next year. 
 
Activists who have opposed TTIP since negotiations began in 2013 say the deal would only benefit multinationals and harm consumers.

(AFP) 
 
 
 
 
 
 
 
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There is a widespread suspicion in the EU that the deal would undercut the bloc's standards in key areas such as health and welfare

France said on Tuesday it will call on the European Commission to suspend negotiations on a massive trade deal between the European Union and the United States, which it complained are unfairly weighted in favour of the Americans. "There is no more political support in France for these negotiations" and "France calls for an end to these negotiations," the country's junior minister for trade Matthias Fekl told RMC radio. The EU and US began work on the Transatlantic Trade and Investment Partnership (TTIP) in 2013, aiming to create the world's largest free-trade area by the time President Barack Obama leaves office in January. But the talks have got bogged down amid widespread suspicion in the 28-nation EU that a deal would undercut the bloc's standards in key areas such as health and welfare. The setbacks have raised serious doubts that it will be achieved by the end of the year as hoped. Fekl said there is an imbalance in the negotiations in favour of the US side. "The Americans give nothing or just crumbs... that is not how negotiations are done between allies," he said. "We need a clear and definitive halt to these negotiations in order to restart on a good foundation". France will make this case at a meeting of foreign trade ministers in Bratislava in September, Fekl added. He did not indicate when or under what conditions the talks could restart. France's Prime Minister Manuel Valls has said it would be "impossible" for the two sides to conclude negotiations on a trade deal by the end of 2016. And Germany's vice chancellor and economy minister Sigmar Gabriel said on Sunday that the negotiations were effectively dead in the water. "The talks with the US have de facto failed because we Europeans of course must not succumb to American demands... Nothing is moving forward", he said. But the European Commission on Monday rejected the German claims and insisted the talks remained on track. "The ball is rolling right now. The Commission is making steady progress," Commission spokesman Margaritis Schinas said. "Talks are now indeed entering a crucial stage but... provided the conditions are right, the Commission stands ready to close this deal by the end of the year," he told a press briefing. Behind the scenes, top diplomats have told AFP talks may be suspended until after the US presidential election in November as well as elections in France and Germany next year. Activists who have opposed TTIP since negotiations began in 2013 say the deal would only benefit multinationals and harm consumers. (AFP)

France seeks halt to talks on skewed EU-US trade deal

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