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Friday’s deadline for most countries is to negotiate new trade agreements with the US.
President Trump reached a deal with the European Union on Sunday that will set up a 15% levy on imports to America. It is lower than the proposed original rate at liberation day (20%) and Trump threatened the European Union with the beginning of this month (30%).
This rate is higher than 10% baseline which is the highest import to the US since spring, when the White House first stated that it would delay higher rates.
Additionally, the European Union will purchase $ 750 billion in American energy and invested $ 600 billion in the US by 2028, the White House added to a Monday statement. However, investment feasibility is happening Questioned,
The investor response for the deal was subdued, but still positive. On Sunday night, futures moved up higher, and S&P 500 and Nasdaq Composite Index were trading in Green for the first half of Monday’s session. Both of them had drowned less till 2 pm.
Economists consider to a large extent that the deal is a good thing – or, very at least, it is better than nothing. An all-out trade war between the US and the European Union would be a true worst situation, so the agreement brings a sense of relief for both sides. He said, details are really universally celebrated. In addition, the details are still slightly marked.
Some “strategic products” are exempted from 15% tax (ie aircraft, select chemicals and agricultural products and other raw materials). What is not currently a discount? Luxury goods. LVMH’s shares were trading 2% less at the time of writing.
European Commission Chairman Ursula von Der Leyen said on Monday that more goods can be added to the discount list, conversation should continue.
The White House called the agreement a “huge deal” that helps to free America from “unfair trade practices.” Other countries involved are less excited. Just ask French Prime Minister François Bayoro.
This is a busy day for the President, not only due to tariffs. He is currently in a Scotland meeting with the British Prime Minister Kir Stmper.
According to both the White House, the trade and human crisis in Gaza are discussing. Trump told reporters on Monday morning that the US would provide assistance to Gaza, saying that there is “real starvation” in the region.
And let’s not forget about China. The authorities have a slightly longer to deal with, but not much. High tariffs on both Chinese and American items will apply on August 12.
Chinese and American officials are meeting in Sweden today how to move forward. More at the end of this week (and future trade development).
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