The decision came after a direct appeal from European Commission President Ursula von der Leyen, effectively reinstating the July 9 deadline originally agreed in April to allow both sides more time to negotiate a trade deal.

Shortly after, European stocks rallied, with the STOXX 600 index rising 1% as investors breathed a sigh of relief. Automakers and luxury brands, key sectors reliant on transatlantic trade, saw some profits. 

Oil prices edged upward as well, buoyed by the prospect of de-escalation in a trade confrontation that had rattled global markets just days earlier.

Trump’s U-turn followed a Friday announcement in which he threatened a 50% tariff, upset about the slow pace of talks with Brussels. That statement led to market panic and fears of another escalation in the already unstable U.S.-EU trade relationship. 

However, Trump told reporters on Sunday: “We had a very nice call, and I agreed to move it. She said we will rapidly get together and see if we can work something out.”

Von der Leyen also noted: “Europe is ready to advance talks swiftly and decisively. To reach a good deal, we would need the time until July 9.”

The reversal results from the unpredictability of Washington’s current trade environment. Trump’s approach, with sudden policy changes, aggressive rhetoric, and preference for bilateral pressure, has placed longstanding allies in a continuous state of suspense. 

While recent trade discussions with the UK and China have shown some signs of cooperation, talks with the EU have not been so good. Brussels is demanding a balanced agreement, while Washington pushes for wider concessions.

The EU exported over $600 billion worth of goods to the United States last year, making it one of the most noteworthy trade relationships globally. Under current conditions, European exporters already face 25% tariffs on steel, aluminium, and vehicles, along with 10% levies on other goods. 

If no deal is reached by July, these tariffs could surge to 50%, directly affecting high-value products, from German luxury cars to French designer handbags and Italian food exports.

The impact wouldn’t be confined to Europe. Increased import duties would likely raise consumer prices in the U.S., limiting household budgets and disrupting business supply chains. 

On Friday, before Trump reversed course, U.S. and European stocks tumbled, and the dollar weakened. Even the cryptocurrency markets weren’t left out, Bitcoin briefly dropped before rebounding to $109,000 after news broke that the tariffs would be delayed.

The EU is under pressure to act fast, with Washington’s stance changing by the week, the window to secure a stable agreement is narrow. 

Failure to strike a deal by July could cause a fresh round of economic issues, one that neither side may be prepared to absorb in full.

The post Trump Backs Down from EU Tariff Threat, Restores July Deadline appeared first on Tech | Business | Economy.

This is Beijing’s response to Washington’s decision to ramp up its tariffs on Chinese goods to 145%, worsening an already tense situation. 

The new measures increase the chasm between the two global superpowers, raising serious worries about the stability of international trade and global supply chains.

China’s Finance Ministry wasted no time in denouncing the United States’ actions. In an official statement, they lambasted Washington’s tariff hikes, accusing them of violating international trade rules and “common sense”. 

“The U.S. imposition of abnormally high tariffs on China seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion,” the ministry stated.

The escalation comes on the heels of Washington’s decision to impose higher tariffs on Chinese imports, further impacting relations. With the White House’s relentless pressure, Beijing has responded with sharp measures, raising tariffs on U.S. goods to 125%, up from an earlier 84%. 

This is a direct consequence of President Donald Trump’s executive order, which increased the duties on Chinese imports.

While the United States has confirmed its tariffs now stand at 145%, China’s response has been equally firm, leaving little room for diplomatic reconciliation. 

In a pointed message, China’s Finance Ministry added that the U.S. tariffs have created a scenario where “there is no longer a market for U.S. goods imported into China.” They went on to express their intent to continue pushing back with further measures, if necessary, to protect their economic interests.

Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, commented that the current standoff signals an end to the escalation of tariff rates. According to him, the next logical step would be an assessment of the economic damage inflicted on both the U.S. and Chinese economies, though there’s little indication that negotiations are forthcoming. 

Zhang suggested that the real fallout from these trade tensions may be felt in the disruption of global supply chains, which could have long-lasting consequences.

Despite the confrontations, China has refrained from expanding its export control measures, choosing instead to maintain a level of restraint that could leave the door open for future talks. However, the Chinese government has been clear in its stand: if the U.S. continues to press on with tariffs, China will “resolutely counter-attack and fight to the end.”

On the other side of the issue, U.S. Treasury Secretary Scott Bessent has dismissed China’s position, claiming that Beijing’s reluctance to negotiate is a mistake. “It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” Bessent said, adding that the U.S. has long borne the brunt of China’s economic imbalances.

The economic toll on both nations is beginning to show. Goldman Sachs recently downgraded its forecast for China’s GDP, pointing to the impact of trade tensions and slower global growth. 

Though U.S. exports to China account for a small portion of its GDP, the indirect effects of the trade war are being felt, particularly in employment. Around 10 to 20 million Chinese workers are directly involved in industries dependent on exports to the U.S.

Meanwhile, in a meeting with Spanish Prime Minister Pedro Sánchez, Chinese President Xi Jinping made a pointed comment, acknowledging the harm caused by the escalating tariff war. “There is no winner in a tariff war, and going against the world will only isolate itself,” Xi said, stressing the global ramifications of the ongoing conflict.

While some may have hoped for a shift in strategy, it seems that both Beijing and Washington are committed to their respective courses.

With the U.S. market issues, with the S&P 500 in bear territory and oil prices plummeting, the pressure climbs on businesses and consumers who are now caught in the crossfire of this trade war.

The post Again, China Raises Tariffs to 125% on U.S. Imports in Sharp Retaliation appeared first on Tech | Business | Economy.