EU-U.S. Strike Tariff Deal — More Negotiations Ahead
It’s the final countdown: Friday, August 1, is the deadline for countries to reach a deal with the Trump administration on tariffs — or else high rates set by President Trump in April will take effect.
Trump aimed for 90 trade deals in 90 days, but only a few have materialized.
EU DEAL MADE
The European Union and the U.S. reached a broad trade deal Sunday that imposes a 15% tariff on most EU goods — lower than the 30% Trump proposed earlier. The EU will also purchase hundreds of billions of dollars in additional U.S. energy products and weapons. The agreement averts a potential trade war with the 27-nation bloc, which is the U.S.’s largest trading partner.
While the U.S. and European commission came to this agreement over the weekend, it still requires approval by the 27 EU member countries — and some of them have been critical of the deal in the past 24 hours.
Canada, China, and Mexico — the three nations that trade most with the U.S. — are all still negotiating deals.
Canada faces a 35% tariff threat and Mexico 30% under the current proposal. Talks with China continue ahead of an Aug. 12 deadline.
Tariffs will rise to 25% for South Korea, 36% for Thailand, and 50% for Brazil on Friday. Commerce Secretary Howard Lutnick said Sunday that there will not be extensions.
WHERE DEALS HAVE BEEN MADE
The U.S. has made agreements with the EU, UK, Vietnam, the Philippines, Indonesia, and Japan. A look at which nations rely on trade more than the U.S.
If the tariffs do go into effect on Friday, companies must pay the costs as their products enter the U.S., and economists agree that those costs are typically passed on to consumers. Already, some U.S. companies have depleted stockpiles purchased before Trump took office and are beginning to raise prices. Here’s what Mo News Podcast Co-host Jill Wagner experienced this weekend at Lululemon:
