By Andrea Shalal and Julia Payne
WASHINGTON/BRUSSELS (Reuters) – The European Union said it was working on sealing a trade deal with the United States by the end of the month, while U.S. President Donald Trump promised that he would deliver further tariff notices on unnamed countries on Wednesday.
Trump broadened out a trade war that has cast a shadow over the global economic outlook when he said on Tuesday he would impose a 50% tariff on imported copper and soon introduce long-threatened levies on semiconductors and pharmaceuticals.
Trump said late on Tuesday that “a minimum of seven” tariff notices would be released on Wednesday morning, and more in the afternoon. He gave no other details in his Truth Social post.
The threat came a day after he pressured 14 trading partners, including powerhouse U.S. suppliers South Korea and Japan, with tariff letters imposing levies of 25% and upwards to take effect from August 1.
NEGOTIATIONS WITH THE EU
Trump said trade talks have been going well with China and the European Union, which is the biggest bilateral trading partner of the U.S.
Trump said he would “probably” tell the EU within two days what rate it could expect for its exports to the U.S., adding that the 27-nation EU had become much more cooperative.
“They treated us very badly until recently, and now they’re treating us very nicely. It’s like a different world, actually,” he said.
European Commission President Ursula von der Leyen gave a guarded response.
“We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios,” von der Leyen told the European Parliament.
A European Commission spokesperson said that the EU aimed to reach a trade deal before August 1, potentially even in the coming days.
However, Italian Economy Minister Giancarlo Giorgetti warned that talks between the two sides were “very complicated” and could continue right up to the deadline.
HIGHEST TARIFF LEVELS SINCE 1934
Equity markets shrugged off Trump’s latest tariff salvo on Wednesday, while the yen remained on the back foot after the levies set for Japan.
Following Trump’s announcement of higher tariffs for imports from the 14 countries, U.S. research group Yale Budget Lab estimated consumers face an effective U.S. tariff rate of 17.6%, up from 15.8% previously and the highest in nine decades.
Trump’s administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about $100 billion so far and could collect $300 billion by the end of the year. The United States has taken in about $80 billion annually in tariff revenue in recent years.
Trump’s administration promised “90 deals in 90 days” after he unveiled an array of country-specific duties in early April. So far only two agreements have been reached, with Britain and Vietnam. Trump has said a deal with India was close.
(Reporting by Julia Payne, Charlotte Van Campenhout, Philip Blenkinsop, Trevor Hunnicutt, Dan Burns; Writing by Keith Weir; Editing by Alex Richardson)
