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Quick Summary EU warns new US tariffs exceed the 15% ceiling agreed in last summer’s trade deal Trump introduced a new  10% global levy , with threats to raise it to  15% Some EU exports like  cheese, butter, plastics and textiles  could face higher-than-agreed rates Brussels pauses approval process, seeks clarity What’s the Dispute? The European Union says President  Donald Trump ’s new global tariff policy may  violate the EU-US trade agreement  struck last summer. After the  Supreme Court of the United States  blocked Trump’s earlier “reciprocal tariffs,” the White House introduced a  new 10% blanket tariff , later threatening to raise it to  15% . According to the  European Commission , the new global levy would be  added on top of existing duties  — potentially pushing tariffs on certain goods  above the 15% cap  agreed in the bilateral trade deal. Which Products Are Affected? Products that could exceed...

Europe’s top bank resolution official is seeking clarity from the United States to ensure that  US regulators will not obstruct write-downs of Additional Tier 1 (AT1) bonds  during future bank failures, a crucial mechanism used to safeguard financial stability. Background: Lessons from Credit Suisse Dominique Laboureix, chair of the  Single Resolution Board (SRB) , said in an interview that the issue has been raised at the  Financial Stability Board (FSB) , where a working group is “seriously” addressing potential cross-border obstacles. The move follows lingering uncertainty since the  2023 collapse of Credit Suisse , where  AT1 bondholders were fully wiped out  to facilitate the bank’s rescue. With the  Trump administration’s reorientation of US regulatory priorities , European officials are now seeking renewed assurance that Washington will continue to uphold global resolution standards. “You cannot achieve 100% comfort all around the globe wit...

Brussels Eyes Stronger Trade Defenses The  European Commission  is preparing to impose tariffs ranging between  25% and 50% on Chinese steel and related products  in the coming weeks, according to a report by German daily  Handelsblatt , citing senior Brussels officials. The move underscores Europe’s determination to protect its steelmakers from mounting pressure caused by global oversupply and China’s aggressive export push. The Commission declined to comment on the report. Protecting Producers Amid Decarbonisation Push Earlier this month, Commission President  Ursula von der Leyen  said Brussels would introduce a new framework to curb steel imports. She emphasized the need to safeguard European producers as they invest heavily in  decarbonisation technologies , warning that persistent global overcapacity is squeezing industry margins. Under  World Trade Organization (WTO)  rules, the EU cannot extend existing safeguard measures beyond ...

  Key Takeaways: Trump urged EU officials to impose tariffs of up to  100% on China and India , key buyers of Russian oil. The US signaled willingness to impose  matching tariffs  if the EU complies. Move would mark a  strategic shift  for the EU, which has leaned on sanctions rather than tariffs. Trump’s Request to the EU US President Donald Trump asked European Union envoys on Tuesday to implement sweeping tariffs on  China and India  as part of a coordinated strategy to pressure Russian President Vladimir Putin. According to a US official and an EU diplomat, Trump suggested tariffs as high as  100% , citing the two nations’ critical role in sustaining Moscow’s oil-driven economy. The proposal was made during a conference call with EU sanctions envoy David O’Sullivan and other officials. A diplomat noted the US offered to mirror any European action:  “They are basically saying: We will do this but you need to do it with us.” Strategic ...

  Key Takeaways The European Commission has proposed eliminating tariffs on US industrial goods as part of last month’s EU–US trade deal. In return, Washington reduced tariffs on EU-built cars to  15% from 27.5% , effective Aug 1. The move avoids a full-blown trade war, though the agreement remains asymmetric, with the EU making broader concessions. EU proposals also include limited agricultural openings, while maintaining protection on sensitive sectors like beef and poultry. Deal Structure The framework deal was struck on  July 27  between US President Donald Trump and European Commission President Ursula von der Leyen. The EU accepted a  broad 15% tariff  across many exports to avert Trump’s threatened 30% blanket duties on EU goods. While two-thirds of EU–US trade in industrial goods is already tariff-free, Brussels will now remove residual duties averaging  1.35% . For US farm produce, concessions include  zero tariffs on potatoes , reduced t...

Geopolitical Risk Alert: U.S.–EU Trade Tensions Escalate The  European Union  is drawing up a  new retaliatory tariff list worth $84B  in American goods — including aircraft, alcohol, coffee, and medical devices — in response to  President Trump's threat of 30% blanket tariffs  on EU imports, set to begin  Aug. 1  if no trade deal is reached. What’s in the EU’s Tariff Crosshairs? $77B industrial goods : aircraft, autos, machinery, plastics, medical devices $7B food & agri : wine, beer, spirits, fruits, coffee Potential escalation : Legal tools like the  anticoercion instrument  could target: U.S. digital services & advertising IP rights restrictions Public tender bans on U.S. firms Timeline & Negotiation Status A prior  $24B retaliation package  was paused in April, and remains on hold until early August. The new  $84B package  has been trimmed down from $111B after consultations and still needs  form...

Former President  Donald Trump  has raised the stakes in ongoing trade negotiations by  threatening a 30% tariff  on  European Union and Mexican imports , surprising diplomats and market watchers who had expected a more moderate baseline of 10%. “Maybe I’ll change my mind. Maybe I won’t.” Trump’s weekend comments came after weeks of discussions centered around differentiated tariffs by sector, including: Lower rates for German automakers  with U.S. factories Preferential treatment for alcohol and pharmaceuticals Tailored exemptions  for strategic goods However, Trump’s latest statement hinted at  frustration with negotiation progress , signaling a possible shift toward a  flat 30% tariff across the board . 🇪🇺 EU Reaction: Shock and Urgency The EU, previously hopeful for a negotiated 10% baseline, is now bracing for greater disruption. While no formal countermeasures have been triggered yet, EU officials are working under an August 1 deadlin...

  Global Market Snapshot Wall Street Slips on Trade Jitters S&P 500 : 6,259.75 (-0.33%) Dow Jones : 44,371.51 (-0.63%) Nasdaq : 20,585.53 (-0.22%) US futures fell  after Trump threatened  new tariffs  on  EU and Mexico . Markets are pricing in a risk-off sentiment ahead of this week’s  US inflation report  and  Q2 earnings . Meanwhile,  Bitcoin  hit a record high of  $119,487 , up  27% YTD . Malaysia Market Highlights KLCI : 1,536.52 (+0.48%) USD/MYR : 4.2520 (+0.07%) Top Gainer : GAMUDA (+2.62%) Top Loser : IOICORP (-1.28%) Malaysia’s stock market ended  flat for the week , with the  KLCI shedding 0.91%  overall. Despite a mild rebound Friday, foreign investors remain cautious amid: Slower GDP growth outlook RM2.7 billion foreign outflows YTD Tariff concerns hitting AI & export-oriented counters Analysts are now revising down KLCI targets as  AI euphoria fades  and  trade risks escalate . ...

Trade tensions are back — and this time, the EU is rallying support. The  European Union is stepping up diplomacy  with other U.S. trade targets like  Canada and Japan , aiming to form a united front against  President Trump’s proposed 30% tariffs  on EU exports. Key Dates: The EU  extended suspension  of its countermeasures  until Aug 1  to leave room for last-minute negotiations. If no deal is reached,  retaliatory tariffs on US goods worth €21B–€72B  are ready to roll. What Leaders Are Saying Ursula von der Leyen  (EU Commission): Prefers a “negotiated solution” but is “fully prepared” with countermeasures. Emmanuel Macron  (France): Urges faster rollout of the  anti-coercion tool  if talks collapse. Friedrich Merz  (Germany): Warns that 30% tariffs could hit German exporters “to the core.” Why It Matters for Investors Goldman Sachs estimates  EU GDP could fall 1.2% by 2026  if these tariffs are...

Markets Brace for More Trade Turbulence; Dollar Gains as Risk Sentiment Wobbles Analyst View: Investors were hit with fresh trade war jitters after U.S. President Donald Trump escalated tariff tensions late Thursday, announcing a  35% tariff on all Canadian imports  starting  Aug 1 . The  EU is next , with a warning letter due "today or tomorrow," and other countries may face  15–20% blanket tariffs . The news wiped out earlier gains in Asian stocks and sent  U.S. and European futures sliding , while the  U.S. dollar strengthened  against the euro and Canadian dollar. Market Snapshot: S&P 500 & Nasdaq Futures : -0.4% EUROSTOXX 50 Futures : -0.6% EUR/USD : -0.3% to $1.1668 USD/CAD : +0.4% to 1.3704 Even as  Wall Street closed at record highs  overnight — fueled by Nvidia’s historic $4 trillion market cap — global risk appetite remains fragile. What to Watch: Tariff Deadline : Aug 1 — with limited time left, most doubt the U.S. can...

The European Union (EU) is in the final stages of negotiating a  framework trade agreement with the United States , aiming to avert steep tariff hikes set to take effect on  August 1 . According to sources familiar with the matter, the bloc is urgently working to  lock in a 10% tariff rate  across a defined basket of exports, providing temporary relief as both sides pursue a more comprehensive long-term trade deal. Key Sectors in Focus The EU is pushing for exemptions or reduced tariffs on high-value goods including: Aircraft and aircraft parts  (critical for Airbus and European aerospace suppliers) Wine and spirits  (major exports from France, Italy, and Spain) However, challenges remain over US-imposed  25% tariffs on cars and auto parts  and  50% tariffs on steel and aluminum . Although a breakthrough on these fronts appears unlikely in the short term, both sides are exploring a  “tariff offset mechanism”  that would allow select...

With a July 9 deadline looming, the European Union and United States are racing to reach a breakthrough in high-stakes trade negotiations that could shape the future of transatlantic commerce. Central to the discussions: steep tariffs that threaten to hit nearly all EU exports to the US, particularly  automobiles, car parts, steel, and aluminum . While recent talks in Washington yielded what officials described as “technical progress,” the ultimate decision still hinges on  President Trump’s willingness to compromise . His administration’s proposed 50% blanket tariffs—part of a broader push to reshore manufacturing and fund tax cuts—have triggered resistance across EU capitals. Automakers in the Crosshairs European carmakers, especially those like  Volkswagen, BMW, and Mercedes-Benz , are among the most exposed. The EU is pushing hard for an “ offsets rule ” that would reduce or eliminate tariffs for companies that  invest in manufacturing facilities in the US . Whil...

  Sweeping Deregulation to Ease Corporate Burdens The  European Commission plans to reduce corporate reporting requirements by 25% , potentially saving  €40 billion (US$42.06 billion)  for businesses. The  "Simplification Omnibus" package aims to loosen rules on sustainability reporting (CSRD) and supply chain due diligence (CSDDD)  to  help European companies compete with the U.S. and China . Key Changes in the Proposal 1. Looser Environmental & Supply Chain Rules The  CSRD (Corporate Sustainability Reporting Directive) will now apply only to companies with over 1,000 employees and €450 million in turnover ,  excluding 85% of previously covered firms . This reduces  reporting obligations from over 50,000 companies to fewer than 7,000 . The  CSDDD (Corporate Sustainability Due Diligence Directive) will now apply only to direct suppliers , easing supply chain transparency requirements. 2. Clean Industrial Deal & Energy Plan N...

Peter Navarro emphasized that tariffs will play a crucial role in President Trump’s economic strategy , highlighting plans to  review global trade practices  and  enforce fair trade through reciprocal tariffs  to protect U.S. industries and national security. 🔹 Key Takeaways from Navarro’s Remarks 🔹  U.S. to investigate global trade practices  before imposing tariffs after  April 1 . 🔹  Tariffs aim to reduce the $1 trillion annual U.S. trade deficit , which Navarro labeled a  national emergency . 🔹  Focus on fairness:  The U.S. seeks  reciprocal tariffs —if countries lower tariffs on U.S. goods, the U.S. will reciprocate. 💬  Navarro:   "America has the lowest tariffs in the world, and it’s not fair. President Trump wants a level playing field." 📊 Industries in Focus 🔹  Steel & Aluminum:  Tariffs will remain due to  national security concerns  and  global subsidies  from countri...

The European Union (EU) has instructed Apple to halt geo-blocking practices across its services, including App Store, Apple Arcade, Music, iTunes Store, Books, and Podcasts . Geo-blocking limits content availability based on users' geographical location, restricting access to specific services or content. The European Commission has identified multiple cases of geo-blocking in Apple's media services, giving the company a one-month deadline to address the issue . If Apple fails to take corrective action, enforcement measures by national regulators within the EU could follow. European Commissioner Margrethe Vestager emphasized the EU’s commitment to ending geo-blocking, saying that "no company, big or small, should unjustly discriminate against customers based on nationality or location." This step is part of a broader EU effort to eliminate unjustified geo-blocking , ensuring that consumers across the EU have equal access to digital services regardless of loca...

The European Union (EU) has decided to move forward with higher tariffs on electric vehicles (EVs) from China, intensifying trade tensions between the two economic powers. The new tariffs will peak at 45% , with the levies depending on the manufacturer and ranging from 8% to 35% on top of the existing 10% rate. The tariffs will come into effect later this week. This decision follows months of negotiations and threats of Chinese retaliation , with Beijing warning of potential consequences, including tariffs on European goods. China has already hinted at retaliatory measures, including possible actions against dairy, pork , and large-engine cars from Europe. Chinese automakers, especially BYD Co. , have rapidly grown in the global EV market, raising concerns among European carmakers such as Mercedes-Benz and BMW about potential damage to their sales in China. Volkswagen is already considering closing several factories in Germany due to the pressures in the market. The EU's...