WASHINGTON/BRUSSELS — The European Union said on Wednesday it could reach an outline trade agreement with the United States in the coming days, while U.S. President Donald Trump promised that he would deliver further tariff notices on unnamed countries.
Trump broadened a trade war that has cast a shadow over the global economic outlook when he said on Tuesday he would impose a 50 per cent tariff on imported copper and soon introduce long-threatened levies on semiconductors and pharmaceuticals.
He said late on Tuesday that “a minimum of seven” tariff notices would be released on Wednesday morning, and more in the afternoon. He gave no other details in his Truth Social post.
The threat came a day after Trump pressured 14 trading partners, including powerhouse U.S. suppliers South Korea and Japan, with tariff letters imposing levies of 25 per cent and upwards to take effect from August 1.
Negotiations with the EU
Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the U.S.
Trump said he would “probably” tell the EU within two days what rate it could expect for its exports to the U.S., adding that the 27-nation bloc had become much more cooperative.
“They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” he said.
EU trade chief Maros Sefcovic said good progress had been made on a framework trade agreement and a deal may even be possible within days.
Sefcovic told EU lawmakers he hoped that EU negotiators could finalize their work soon, with additional time now from the extension of a U.S. deadline to August 1 from July 9.
“I hope to reach a satisfactory conclusion, potentially even in the coming days,” Sefcovic said.
However, Italian Economy Minister Giancarlo Giorgetti had earlier warned that talks between the two sides were “very complicated” and could continue right up to the deadline.
Highest tariff levels since 1934
Equity markets shrugged off the Republican president’s latest tariff salvo on Wednesday, while the yen remained on the back foot after the levies imposed on Japan.
Following Trump’s announcement of higher tariffs for imports from the 14 countries, U.S. research group Yale Budget Lab estimated consumers face an effective U.S. tariff rate of 17.6 per cent, up from 15.8 per cent previously and the highest in nine decades.
Trump’s administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about US$100 billion so far and could collect US$300 billion by the end of the year. The United States has taken in about $80 billion annually in tariff revenue in recent years.
The Trump administration promised “90 deals in 90 days” after he unveiled an array of country-specific duties in early April. So far, only two agreements have been reached, with Britain and Vietnam. Trump has said a deal with India was close.
Massachusetts Governor Maura Healey, a Democrat, blasted Trump for his “failed trade war.”
“President Trump was elected to lower costs, and all he is doing is raising prices and hurting our businesses,” she said in a statement.
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Reporting by Julia Payne, Charlotte Van Campenhout, Philip Blenkinsop, Trevor Hunnicutt, Dan Burns; Writing by Keith Weir; Editing by Alex Richardson
