EU’s Von der Leyen to Meet Trump in Bid to Clinch Trade Deal
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EU’s von der Leyen says will meet Trump on Sunday to discuss trade
U.S. President Donald Trump and EU Commission President Ursula von der Leyen will meet in Scotland on Sunday. Trump said there was a 50-50 chance or perhaps less that the United States would reach a trade agreement with the EU.
“Following a good call with @POTUS, we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong,” von der Leyen said in a post on X.
Trump on Friday said there was a 50-50 chance or perhaps less that the United States would reach a trade agreement with the European Union, saying Brussels wanted to “make a deal very badly”.
The European Commission on Thursday said a negotiated trade solution with the United States was within reach, even as EU members voted to approve counter-tariffs on 93 billion euros ($109.01 billion) of U.S. goods in case the talks collapse.
($1 = 0.8532 euros)
(Reporting by Bart Meijer; Editing by Benoit Van Overstraeten)
Von der Leyen to meet Trump on Sunday as 30% tariff deadline looms
U.S. President Donald Trump is set to meet with the European Union’s chief executive. The two sides are trying to reach a deal to avoid a 30% levy on EU exports to the US. The EU has already imposed a similar levy on its exports to America. The deal would see a 15% levy applied to all EU exports, not just cars and aluminium. The European Commission is expected to announce the deal on Friday.
“Following a good call with @POTUS [Trump], we have agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong,” the European Commission president wrote on X on Friday.
The announcement comes amid growing hopes in EU capitals that Brussels could clinch a deal similar to the one Washington struck with Japan earlier this week, which would leave the bloc facing a 15% average levy on most exports to the US.
Trump has already imposed a 50% tariff on steel and aluminium, a 25% duty on cars and car parts, and a 10% baseline levy that currently affect €370 billion worth of EU goods, or 70% of the bloc’s total exports to the US.
These duties come on top of the 4.8% average duty faced by EU exporters prior to Trump’s return to the White House in January. EU diplomats believe the hoped-for deal’s 15% baseline includes the previous 4.8% levy, thus effectively leaving the status quo in place.
The EU yesterday approved retaliatory tariffs targeting €93 billion worth of US exports that will enter into effect on 7 August if no deal is agreed – six days after Trump’s 30% levy is set to be imposed.
Earlier on Friday Trump told reporters that there was a “50/50 chance” that the EU could clinch an agreement.
“I would say that we have a 50/50 chance, maybe less than that, but a 50/50 chance of making a deal with the EU,” Trump told reporters shortly before flying to Scotland, where he will visit his golf resorts and meet with British Prime Minister Sir Keir Starmer.
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Bound for Beijing, E.U. leaders face two-front trade fight with Trump and Xi
The E.U. traditionally could count on the United States as an ally in pressuring China. But now the U.S. is under threat of punitive tariffs by President Donald Trump. That has left the 27-nation bloc confronting tensions with the world’s two largest economies. The relationship has long been strained by trade disputes and China’s support for Russia. But China says it has always believed that after 50 years of development, “E-U relations can navigate difficulties and challenges’ The meeting was originally planned for two days, but was shortened to just one because of the tensions between the two sides. It is expected to mark the 50th anniversary of diplomatic ties between China and the E.O. U.N. and the European Union are to meet in Brussels on Thursday. The European Union is to hold a summit with China on Friday to discuss trade and other issues. The meeting is also intended to underline the importance of a fair and balanced relationship with China, an E.E. official said.
The E.U. traditionally could count on the United States as an ally in pressuring China, but now finds itself under threat of punitive tariffs by President Donald Trump, leaving the 27-nation bloc confronting tensions with the world’s two largest economies, which are also embroiled in their own tariff standoff.
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“You’ve got this kind of two-front hit,” said Andrew Small, a senior fellow at the German Marshall Fund who has advised the E.U. on China policy. “And it’s a moment in which China could decide to squeeze even harder.”
The E.U. had hoped it could resolve some frictions with Beijing or clinch a tariff deal with Trump by now, strengthening its hand with China. “The fact they have neither makes things more difficult,” Small said. “You can see this already leading to a kind of mindset of ‘you can’t afford to look too weak.’”
In recent months, relations have soured further. In Brussels, there is anger over China’s partnership with Russia during its war in Ukraine and over the flow of cheaper Chinese goods into European markets. In Beijing, there is frustration over E.U. tariffs on Chinese electric vehicles and over E.U. sanctions on Chinese banks accused of aiding Russia’s war effort.
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The E.U. was also unnerved by export controls that China imposed in April, as part of Beijing’s trade fight with Trump, which restricted shipments of rare earth minerals and magnets that European companies depend on for manufacturing everything from cars and smartphones to weapons. In June, the U.S. and China reached a deal to lift the restrictions on some rare earths exports.
In this hostile climate, even organizing Thursday’s meeting was a challenge. Originally planned for two days, it was shortened to just one. And expectations are low, with E.U. officials saying they do not expect the two sides to issue a joint declaration.
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Nonetheless, China has confirmed that its leader, Xi Jinping, will meet European Commission President Ursula von der Leyen and European Council President António Costa on Thursday. When they do, Trump’s shadow will loom large.
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E.U. officials maintain that they will chart their own path with China, though they often calibrate their approach based on the state of relations with their closest traditional ally, the United States. But with Trump threatening tariffs that could upend their own trade relations, Brussels cannot rely on Washington’s muscle.
China, seeing Europe in Trump’s crosshairs, seems more emboldened to stand up to E.U. scolding over relations with Russia and alleged unfair trade practices. China denies violating trade norms or engaging in human rights abuses.
Europe is “perpetually stuck in a bind,” said Kerry Brown, a professor of Chinese studies at King’s College London and a former British diplomat in Beijing.
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At the same time, Beijing is frustrated, Brown said, because “even with that amount of pressure from America, Europe doesn’t want to commit to China in a different way.”
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“China’s main message to Europe will be: ‘Look, who’s your friend? America says it’s your friend, and yet it’s putting tariffs on you,’” he added.
Ahead of Thursday’s meeting, the E.U. has adopted a stern tone, calling the summit an opportunity “to underline the importance the E.U. attaches to a fair and balanced relationship.”
China, meanwhile, says it is a chance to deepen cooperation. “China has always believed that after 50 years of development, China-E.U. relations … can navigate difficulties and challenges,” Foreign Ministry spokesperson Guo Jiakun told reporters this week.
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When Trump’s tariff blitz first hit U.S. foes and friends alike, some analysts predicted it could push Europe and China closer, with the two eyeing each other as a buffer. That has yet to pan out. Instead, each side seems to be digging in.
In its latest round of sanctions against Russia, the E.U. for the first time targeted two Chinese banks. China’s Foreign Ministry blasted the charges as fabricated and warned of “a serious negative impact” on economic relations.
During a visit to Brussels earlier this month, Chinese Foreign Minister Wang Yi had warned E.U. officials against the decision, according to an official familiar with the discussions, speaking on the condition of anonymity to discuss a sensitive matter.
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The minister also suggested a Russian loss in Ukraine would not be in Beijing’s interest because the U.S. could then turn its full focus to Asia, the official said. That exchange was first reported by the South China Morning Post.
The E.U. countries — together the world’s third-largest economy — have long had a complicated, distrustful relationship with China, which was exacerbated after Russia’s 2022 invasion of Ukraine.
Yet the E.U. countries have at times shown divisions over “de-risking” ties with Beijing — an E.U. view of China posing as much peril as potential for profit — versus entirely “decoupling” their economies from China.
As Trump’s tariff threats roil global trade, European nations have sought to hedge their bets and accelerate free-trade talks with other countries, including India. E.U. officials have stressed the need to “diversify” partnerships and frequently reiterate they can be a reliable partner in an unreliable world.
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The E.U.’s leaders are on an Asia tour that began with a warmer reception in Japan, a Group of Seven ally, on Wednesday before the visit to Beijing.
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The E.U. and the Trump administration continue to negotiate on a potential deal, but as the Europeans wrapped up their meetings in Tokyo, there was still no breakthrough.
Just this month, von der Leyen, head of the E.U.’s executive branch, accused China of “flooding global markets with cheap, subsidized goods to wipe out competitors.” Another spokesperson for China’s Foreign Ministry, Mao Ning, retorted that “what needs rebalancing” is the E.U.’s “mindset,” not its economic ties with China.
Some E.U. industries, such as German carmakers, are particularly reliant on the Chinese market.
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The Europeans have tried offering the Trump administration a more united front against China, including to counter Chinese overcapacity. But trade talks with Washington are floundering and the E.U. is considering retaliation against Trump.
At the same time, officials say it is in the bloc’s interest to set itself apart from the United States.
“I think this is something we really need from China, to not look at the E.U. through the lens of the U.S., but as their largest trading partner,” said an E.U. official said, speaking on the condition of anonymity to discuss preparations ahead of the summit.
Europe, like the U.S., shoulders a massive trade imbalance with China that E.U. leaders want addressed. In particular, they want to curb the flow of cheap goods, such as those sold by e-commerce sites Shein and Temu.
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The Europeans object to China allowing exports of dual-use products that end up in weapons used on the battlefield in Ukraine. Beijing says that it is not a party to the war and that it wants peace.
China is also keeping channels open, even as it flexes its muscles. Simona Grano, a China expert at the University of Zurich, said Beijing wants to avoid more trade restrictions and maintain access to E.U. markets and technologies, especially as it faces U.S. levies.
“It’s been sort of a growing tension,” she said. “And now we are at the apex of the situation, which is even more difficult because Europe is in between these two superpowers.”
EU still seeks Trump trade deal—but readies retaliation
Brussels is putting forward a list of U.S. goods worth EUR 72 billion ($84 billion) that could be targeted with levies if talks fail. EU ministers roundly backed the push to try to salvage the talks. But they also agreed to move ahead with readying a retaliation if Trump makes good on his threat. Trump threw months of painstaking talks into disarray on July 12 by announcing he would hammer the bloc with the sweeping tariffs if no agreement is reached by August 1. He has unleashed sweeping stop-start tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn. The EU, alongside dozens of other economies, had been set to see its tariff level increase from 9 percent to 10 percent last July. But EU pushed back the deadline to August 1st of August, saying it was still looking to clinch a deal by that time. The European Commission chief said at the Brussels talks, “If you hold anything back, you are not strengthening your hand in negotiations.”
By Agence France-Presse
On Monday, July 14, the European Union (EU) moved to firm up possible retaliation if the U.S. President Donald Trump hits the bloc with 30%t tariffs, while insisting it was still looking to clinch a deal by August 1st.
EU Trade Chief Maros Sefcovic said Brussels was putting forward a list of U.S. goods worth EUR 72 billion ($84 billion) that could be targeted with levies if talks fail.
He said after meeting EU ministers, “The EU, as you know very well, never walks away without genuine effort, especially considering the hard work invested, how close we find ourselves to making a deal. But it takes two hands to clap.”
Trump threw months of painstaking talks into disarray on July 12 by announcing he would hammer the bloc with the sweeping tariffs if no agreement is reached by August 1.
Sefcovic, the EU’s chief trade commissioner, said he planned to speak to U.S. counterparts later on Monday to try to get negotiations back on track.
EU ministers roundly backed the push to try to salvage the talks—which Brussels believed were on the cusp of success last week—and to keep on trying to find an accord. But they also agreed to move ahead with readying a retaliation if Trump makes good on his threat.
Denmark’s foreign minister, Lars Lokke Rasmussen, whose country holds the EU’s rotating presidency, said, “There was a total unified position among the ministers that we should be ready to respond if needed. If you want peace, you have to prepare for war.”
Brussels has been working on the list of U.S. imports it could target since May—landing on the EUR 72 billion package after lobbying from member states.
The EU has already prepared a separate list of U.S. imports worth EUR 21 billion that it is ready to target over earlier tariffs from Trump on steel and aluminum.
European Commission chief Ursula von der Leyen delayed rolling out those measures on Sunday, July 13—a day before they were set to kick in—as a sign of goodwill towards Washington.
INTERVENTION FOR TRUMP’S TARIFF THREAT. Vice-President of the European Commission for Interinstitutional Relations, Maros Sefcovic, gestures as he speaks during a press conference following a meeting of the EU-United Kingdom Joint Committee and the EU-United Kingdom Partnership Council at the EU headquarters in Brussels, on May 16, 2024. (Photo courtesy: John Thys/AFP)
‘No taboos’
Before heading into the meeting with EU ministers, Sefcovic warned that if Trump did impose 30-percent tariffs, it would make trade “almost impossible” between the two economic giants. He said, “Practically it prohibits the trade.”
EU nations—some of which export far more to the United States than others—have sought to stay on the same page over how strong a line to take with Washington in order to get a deal.
France’s trade minister Laurent Saint-Martin said retaliation plans should be drawn up with “no taboos,” adding that the weekend’s setback called for a rethink of the bloc’s tactics.
He said at the Brussels talks, “If you hold anything back, you are not strengthening your hand in negotiations. Obviously, the situation since Saturday requires us to change our strategy.”
Photo courtesy: Philip Fong/AFP
Deals and duties
Since returning to the presidency in January, Trump has unleashed sweeping stop-start tariffs on allies and competitors alike, roiling financial markets and raising fears of a global economic downturn.
But his administration faces pressure to secure deals with trading partners after promising a flurry of agreements. So far, U.S. officials have only unveiled two pacts, with Britain and Vietnam, alongside temporarily lower tit-for-tat duties with China.
The EU, alongside dozens of other economies, had been set to see its U.S. tariff level increase from a baseline of 10 percent last July 9, but Trump pushed back the deadline to 1st of August.
The EU tariff is markedly steeper than the 20 percent levy Trump unveiled in April—but paused initially until mid-July.
Thomas Byrne, the minister for Ireland whose pharmaceutical industry puts it on the front line of Trump’s trade war along with industrial powerhouse Germany, called for Europe to “work our hardest” for a deal before August 1.
He said, “That gives us certainty, it protects investments, it protects jobs.”
India’s Inbrew, Tilaknagar scout private debt raise in race to acquire Imperial Blue, sources say
Indian liquor makers Inbrew Beverages and Tilaknagar Industries (TILK.NS) are seeking to tap the private credit market. The companies are looking to raise around $500 million each and have reached out to private credit funds to back their acquisition. Imperial Blue, India’s third-largest whiskey brand by sales, has been valued at about $600 million to $650 million, according to a report in the Business Standard newspaper. If the deal goes through, it will be the largest in India’s alcoholic beverage industry in more than a decade.
MUMBAI, July 14 (Reuters) – Indian liquor makers Inbrew Beverages and Tilaknagar Industries (TILK.NS) , opens new tab are seeking to tap the private credit market as they compete with each other to acquire Pernod Ricard’s (PERP.PA) , opens new tab Imperial Blue, according to three sources familiar with the matter.
The companies are looking to raise around $500 million each and have reached out to private credit funds to back their acquisition, the sources, who did not want to be named as they are not authorised to speak to media, said last week.
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Imperial Blue, India’s third-largest whiskey brand by sales, has been valued at about $600 million to $650 million, according to a report in the Business Standard newspaper.
“Both the companies have reached out to private credit funds to back them up whenever they win the bid,” said a fund manager at a private credit fund, which has provided commitments to both the firms.
“Many funds have given commitments to both the issuers, as only one of them will actually go ahead with the borrowing.”
Avendus Capital is the banker for Tilaknagar Industries, while Standard Chartered Bank will be acting as the banker for Inbrew Beverages, two of the sources said.
Inbrew Beverages, Tilaknagar Industries, Avendus Capital and Standard Chartered Bank did not immediately reply to Reuters’ emails seeking comment.
Fund managers expect the Imperial Blue acquisition to be finalised over the next month as the companies are in an advanced stage of talks.
If the deal goes through, it will be the largest in India’s alcoholic beverage industry in more than a decade. The last big acquisition happened in 2013, when Diageo bought United Spirits for $1.9 billion.
Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Mrigank Dhaniwala
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