Trump announces 50% tariffs for Brazil. Merz: 'Cautious optimism' for EU-US agreement

Negotiations on tariffs between the EU and the US have 'intensified considerably' since the end of May and are continuing 'every single day' with 'constructive discussions' and 'good progress', with the aim of reaching a 'Joint Statement' or 'Agreement in Principle'. With the hope of 'reaching satisfactory results, potentially even in the coming days'. This possible Agreement in Principle, however, would not be the end, but 'the beginning of a new beginning', because it would provide 'a framework on which to continue to build' subsequent agreements, i.e. to pave the way for 'a future fully-fledged EU-US trade agreement'. This was explained by EU Trade Commissioner Maros Sefcovic in a speech before the plenary of the European Parliament this afternoon in Strasbourg.

The goal, Sefcovic emphasised, 'is to restore predictability' for businesses, workers and consumers 'against an undesirable and harmful escalation'.

There are "two issues" that are still unresolved in the negotiations between the EU and the US to reach an agreement in principle on trade tariffs: the EU is calling for a "significant" lowering of existing US tariffs, until a detailed and comprehensive agreement is closed, and a standstill clause, which would ensure that the framework agreement is closed without having to reopen other tables on other tariffs. This was explained by the chairman of the European Parliament's Inta committee, Bernd Lange (Spd, Germany, S&D group), at a press conference in Strasbourg this morning. With the US, he said, "we have been negotiating for a good three weeks. I see that there might be room for some understandings on the steel tariffs situation for cars and, of course, also on some possible exceptions to the basic tariffs. However, there are still two main issues under discussion. If we already had a framework agreement, he reasoned, 'what would it mean for the moment when we are negotiating the details?' For the EU, 'this should also lead to a significant reduction in tariffs until we find a ready agreement, which the US has not yet allowed'.

"Negotiations" with the US "are the only solution and I assure you that I will go on until the end to get this agreement" on tariffs, "so that it is the best possible". This was said by EU Trade Commissioner Maros Sefcovic in the plenary debate in the European Parliament. "These negotiations are not like the others. We are focusing on negotiated solutions and preparing for any scenario. It has been like this since day one. And, especially in delicate situations like these, I prefer good results to loud statements or strong headlines,' he stressed.

The tug-of-war over tariffs triggered by Donald Trump's US policy, tensions between Washington and Beijing, the unpredictability of future geopolitical developments and the backlash from conflicts in the Middle East and between Russia and Ukraine pose growing threats to the UK economy and financial stability. This is underlined in a six-monthly report from the Bank of England (BoE), outlined today by Governor Andrew Bailey. The report evokes 'elevated pressures' on the debt front and risks of 'fragmentation' in international trade and financial market developments. Dangers 'particularly relevant for an open economy anchored by a large financial sector' such as the Kingdom's. The central bank assures that the 'British banking system is still strong' and able to provide support 'for business and households even if economic and financial conditions deteriorate'. But it insists on the need for increased caution both with respect to the evolution of the ongoing trade negotiations between the US and various partners, and on budget balances. A warning that joins the warning on the soaring British public debt launched just this week by the Office for Budget Responsibility (Obr), the Treasury's independent oversight body, in the wake of the latest controversial moves (and partial retreats) by Keir Starmer's government.

"While other nations faced higher tariffs from the United States following the letters sent on Monday' by President Trump, our negotiations allowed the EU to avoid them: an extension until 1 August of the status quo was announced, giving us further room to reach a satisfactory conclusion, and to continue refining our work. I hope to reach a satisfactory outcome, potentially also in the coming days'. This was said by Trade Commissioner Maros Sefcovic, speaking about the negotiations on tariffs in the House.

"In protecting the integrity of our regulatory framework, we have firmly drawn our red lines. Our legislation and regulatory framework remain non-negotiable and the Commission will continue to protect the regulatory autonomy of the EU". This was said by European Trade Commissioner Maros Sefcovic, speaking in plenary at the European Parliament in Strasbourg. "At the same time, we continue to prepare for any eventuality, but our goal and priority remains to ensure a negotiated solution," he added.

"As I have mentioned on several occasions, my dream is of a large free market with zero tariffs between Italy, Europe, Canada, the United States and Mexico. However, the current situation calls for pragmatism. The goal is to reach an agreement that avoids destabilising scenarios. Our companies need certainty to invest, export and create jobs and wealth. It will be essential to use the negotiating window of the coming days to reach a satisfactory agreement. A trade war, we have said repeatedly, is not in anyone's interest'. Foreign Minister Antonio Tajani said this at the question time in the Chamber of Deputies. "Our companies are today facing a complex and rapidly changing international context, marked also by the challenge of tariffs in the negotiations between the United States and the European Union. Together with the President of the Council, I am in constant contact with the other governments at the top of the European Commission. I have promoted a pragmatic and dialogue-based approach with our European partners, but without ever renouncing firmness and always with the utmost attention to the needs of our productive fabric. I am also directly following developments with Commissioner Sefcovic, who is personally involved in the extensive and complex negotiations with Washington,' Tajani stressed. (

German Chancellor Friedrich Merz was cautiously optimistic about a possible trade agreement between the EU and the US. "I remain cautiously optimistic that an agreement can be reached with the United States in the coming days, or at the latest by the end of the month," Merz said during a speech in parliament.

The German government's goal is to 'reach a trade agreement with the US as soon as possible, ensuring minimal tariffs for transatlantic trade', Merz continued. To achieve this difficult goal, 'given the current demands of the US government', 'close coordination with European partners' is necessary, Merz added.

With the United States "I hope to reach a satisfactory result, potentially also in the coming days". So says European Trade Commissioner Maros Sefcovic, speaking in plenary at the European Parliament in Strasbourg. "The agreement in principle that we are trying to finalise," he explains, "is not the end, but rather the beginning. It would provide a framework on which to continue building, defining the exact parameters of the next agreement. In other words, I see it as a fundamental framework that paves the way for a future fully-fledged EU-US trade agreement'. Sefcovic emphasises that 'we have approached this task with the utmost care, balancing US demands with our own priorities and ensuring that our regulatory autonomy remains intact. But let me be clear: while we remain committed to reaching a satisfactory agreement, we must recognise that some degree of rebalancing will be necessary, depending on different perspectives and starting points'.

"We remain fully committed to working with our US counterparts to achieve a negotiated outcome that brings stability and predictability to transatlantic trade. We are engaging with the United States in good faith and with a sense of responsibility. For this reason, we have chosen to temporarily suspend our initial package of countermeasures in response to the unjustified tariffs imposed on our steel and aluminium exports. We do not want to further worsen an already fragile and uncertain global economy. That said, our patience is not unlimited. If no agreement is reached by the deadline, the EU stands ready to activate targeted and proportionate countermeasures in defence of its legitimate interests'. So says the Danish Minister for European Affairs, Marie Bjerre, of the rotating EU Presidency in her speech to the European Parliament in Strasbourg.

It is to be hoped that the new wave of tariffs from 25% to 40% that Trump has put on the negotiating table with fourteen countries is an effective reminder of reality. And thus to the urgency for Europe and Italy to equip themselves with plans equal to the challenge.

Scrolling down the list, it appears that the affected countries account for just over 10% of US imports. Even if the tariffs did indeed come into force, the inflationary impact on the US economy would therefore probably be zero. Only Japan and South Korea make up the difference: together they account for 8.5% of imports. And what do they export to America? Cars and components. Yesterday, in the New York Times, a former General Motors executive was blunt: Chinese technology in electrics is now so far ahead that without tariffs the American industry risks disappearing. We need to raise car prices, tariffs are important to slow down their advance. The suspicion then arises that the other twelve countries are on the list just to make noise.

The scenario used in the ECB analysis considers the information "that was prevalent in May with tariffs at 10%, the so-called universal tariffs" US. On these values "we believe that the European economy will continue to grow, more slowly than it did before with free trade". "But compared to a more severe baseline scenario, what we have is that the economy has continued to grow. So, I remember, there is a lot of momentum in the European economy." This was said by Philip Lane, board member and chief ECB economist.

South Korea has proposed to the US an 'integrated package' to solve the tariffs issue, bringing together the most exquisite trade issues with politico-military ones. This was stated today by South Korean National Security Advisor Wi Sung-lac, suggesting that a meeting between South Korean President Lee Jae-myung and US President Donald Trump could take place soon.

Speaking to reporters at the end of a four-day visit to Washington, Wi - according to the Yonhap news agency - reportedly held 'in-depth' discussions on trade negotiations and broader alliance issues in meetings with US Secretary of State Marco Rubio and other senior officials.

"We do not expect to receive a letter like the one South Korea and Japan received in recent days. As far as I know we will not receive a letter". European Commission spokesman Olof Gill said this in response to questions about the negotiations with the US on tariffs.

"I can confirm that the European Trade Commissioner, Maros Sefcovic, had a phone call yesterday with the US Trade Secretary, Howard Lutnick, and will speak with the US Trade Representative, Jamieson Greer, this afternoon". This was said by a European Commission spokesman.

Negotiations on tariffs with the US continue 'day and night', the EU wants a negotiated solution, but is preparing for all scenarios, and will stand firm in defending its interests and principles. This is 'a time of risk, but also of opportunities for the EU to seize, to develop trade agreements with other economies around the world, which are looking for 'partners they can count on'. This was said by the President of the Commission, Ursula von der Leyen, today in Strasbourg, during her speech in the plenary of the European Parliament, in the debate on the results of the last European Council. "Since February," von der Leyen recalled, "the United States has imposed tariffs on 70% of its total trade with the EU. The magnitude and scope of these measures are unprecedented'. With regard to other countries, 'we have already concluded new agreements with Mercosur, Mexico and Switzerland. We will work to finalise the agreement with India by the end of the year',