President Trump firmed up a trade deal with the United Kingdom last week, and its European Union neighbors are apparently pushing for a similarly styled deal despite fits and starts in talks.
According to reports, the EU now expects a 10% “reciprocal” tariff to be the starting point for an US-EU trade deal. The FT reported last Thursday that the EU is pushing for a deal modeled on the US-UK agreement. Trump has threatened tariffs of up to 50% on EU imports after various tariff “pauses” lapse July 9.
Starting Monday, Trump’s tariffs will affect washing machines, fridges and ovens. This could mean higher prices for everyday items in the US.
Meanwhile, in Canada, Prime Minister Mark Carney’s government threatened to hike tariffs by late July on US imports of steel and aluminum, weeks after Trump ballooned US levies on those metals to 50%. At the G7 this week, Trump and Carney both expressed optimism on a trade deal between the countries.
The furious push follows Trump’s recent warning that he would soon send letters setting unilateral tariff rates, raising questions about the status of negotiations and a return to his “Liberation Day” tariffs that roiled markets. Trump instituted a pause on his most punishing duties that expires July 9.
Trump also secured a small legal victory on Friday, when the Supreme Court declined to expedite a challenge from two family-owned businesses before lower courts have weighed in. Learning Resources, a family-owned toy company, had asked the high court to take the unusual step of taking up the case before an appeals court ruled.
The case is one of several legal challenges working its way through the court system.
Meanwhile, the US economy is still figuring out the effects of the tariffs. Federal Reserve Chair Jerome Powell said as the central bank held interest rates steady last week that the Fed is still waiting to see the effects of the tariffs on prices.
“We’re beginning to see some effects, and we do expect to see more of them over the coming months,” he said.
He said the Fed needs more data, saying “the pass-through of tariffs to consumer price inflation is a whole process that’s very uncertain.”
Read more: What Trump’s tariffs mean for the economy and your wallet
Here are the latest updates as the policy reverberates around the world.
LIVE 1238 updates
