EU President von der Leyen spoke after the trade deal framework announcement.
von der Leyen was candid:
- deal was the best it could get
- the deal is a stabilizer no stacking up tariffs, no multiple rates
- 15% rate is a ceiling and becomes permanent
- digital rules or tech regulation were not mentioned
- alternative was a trade war
- is a stabilizer that will translate into higher tariffs compared to under Biden
I'm reading many 'hot takes' that Europe caved in. What these geniuses fail to understand is that the US sets its own trade rules. The negotiations that Japan, the EU, and everyone else engaged in, and China continues to engage in, is to de-escalate from Trump's initial outlined rates. Trump has made tariffs a central tenet of trade with the US. Trade between other countries and blocs need not be impacted. For the remainder of Trump's term, at least, it is what it is.
Earlier:
- Monday open levels, indicative FX prices, 28 July 2025 - EUR up on US/EU 'framework' deal
- US and EU reach a framework trade deal, 15% tariff rate, EU to purchase energy from the US
- U.S. and China will meet in Stockholm on Monday, 90 day extension expected
Weekend:
