EC President von der Leyen: US trade negotiations are complex but we are advancing

Source Fxstreet

European Commission President Ursula von der Leyen said on Tuesday that trade talks between the European Union (EU) and the United States (US) are complex but added that they are advancing.

Key takeaways

"The US and the EU have agreed on a July 9th deadline."

"The EU has a trade surplus with the US, and that could last."

"There is little pressure now to lower the oil price cap."

Market reaction

EUR/USD stays under modest bearish pressure in the American session and was last seen losing 0.3% on the day, trading at 1.1525.

Tariffs FAQs

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price languishes near multi-week low as focus shifts to FOMC policy meeting Gold price (XAU/USD) struggles to attract any meaningful buyers during the Asian session on Tuesday.
Author  FXStreet
Yesterday 05: 42
Gold price (XAU/USD) struggles to attract any meaningful buyers during the Asian session on Tuesday.
placeholder
Forex Today: US Dollar rally loses steam as focus shifts to US data, trade talksThe US Dollar (USD) holds steady against its rivals after posting impressive gains on Monday.
Author  FXStreet
Yesterday 07: 40
The US Dollar (USD) holds steady against its rivals after posting impressive gains on Monday.
placeholder
USD/JPY Price Forecast: Rising 20-day EMA suggests a strong upside trendThe USD/JPY pair ticks down to near 148.35 during the late Asian trading session on Tuesday, struggling to extend its three-day winning streak.
Author  FXStreet
Yesterday 07: 44
The USD/JPY pair ticks down to near 148.35 during the late Asian trading session on Tuesday, struggling to extend its three-day winning streak.
placeholder
Meme Coins Price Prediction: DOGE, SHIB, PEPE at risk as bullish momentum, Open Interest declinesThe meme coins are holding crucial support levels amid declining bullish momentum and Open Interest (OI), pointing to escalating downside risk. 
Author  FXStreet
23 hours ago
The meme coins are holding crucial support levels amid declining bullish momentum and Open Interest (OI), pointing to escalating downside risk. 
placeholder
EUR/USD extends selloff to 1.1550 as Dollar strengthens despite weak US dataThe EUR/USD resumed its downtrend for the second straight day as market participants digest softer-than-expected economic data from the United States (US).
Author  FXStreet
7 hours ago
The EUR/USD resumed its downtrend for the second straight day as market participants digest softer-than-expected economic data from the United States (US).
goTop
quote