A report from Bloomberg was out about an hour ago and highlights the state of play between the US and Europe in the tariff war, citing sources:
- EU officials expect 10-25% tariff rate on all or most goods
- European Union is identifying concessions it’s willing to make in a term sheet
- They were told there is no way to avoid tariffs next week
- Areas for negotiations on the punitive trade measures, including lowering its own duties, mutual investments with the US as well as easing certain regulations and standards
- Non-tariff issues such as the VAT, digital taxes and several EU regulations and food standards featured prominently during the talks in Washington
- The EU may be eyeing US services imports in retaliation
Speaking of services tariffs, this is a good point.
The US dollar is broadly lower today and that's helped to life the euro by 29 pips.
