French Foreign Affairs Minister says US-EU trade deal will bring temporary stability

Source Fxstreet

French Foreign Minister Jean-Noël Barrot said on Monday that a trade deal between the United States (US) and the European Union (EU) will bring temporary stability, adding that it is still an unbalanced deal.

Key quotes

It is still an unbalanced deal.

Trade deal has merit of exempting certain key French sectors, such as aeronautics and spirits.

Market reaction  

At the time of writing, EUR/USD is trading 0.11% higher on the day at 1.1755. 

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
Bitcoin ETF Inflows For 2025 Now Outpace 2024, Data ShowsUS Bitcoin spot exchange-traded funds (ETFs) have seen more inflows this year so far compared to the same point in 2024, according to data.
Author  Bitcoinist
Jul 16, Wed
US Bitcoin spot exchange-traded funds (ETFs) have seen more inflows this year so far compared to the same point in 2024, according to data.
placeholder
EUR/USD holds gains above 1.1750 following US-EU trade agreementEUR/USD gains ground after registering losses in the previous two sessions, trading around 1.1770 during the Asian hours on Monday.
Author  FXStreet
7 hours ago
EUR/USD gains ground after registering losses in the previous two sessions, trading around 1.1770 during the Asian hours on Monday.
placeholder
Japanese Yen slides to one-week low against USD amid reduced safe-haven demandThe Japanese Yen (JPY) kicks off the new week on a softer note as the latest optimism over a trade deal between the US and the EU undermines traditional safe-haven assets.
Author  FXStreet
7 hours ago
The Japanese Yen (JPY) kicks off the new week on a softer note as the latest optimism over a trade deal between the US and the EU undermines traditional safe-haven assets.
placeholder
Gold price fills opening gap amid subdued USD demand; bulls still seem reluctantGold price attracts some buyers near the $3,312-3,311 region during the Asian session on Monday and fills a modest bearish gap opening amid subdued USD price action.
Author  FXStreet
4 hours ago
Gold price attracts some buyers near the $3,312-3,311 region during the Asian session on Monday and fills a modest bearish gap opening amid subdued USD price action.
placeholder
The S&P 500 broke above 6,400 after the U.S. and EU agreed to lower tariffs to 15%.U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
Author  Cryptopolitan
4 hours ago
U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union.
goTop
quote