It was grip-and-grin time for Ursula von der Leyen as she sat throughout from Donald Trump in Scotland final week, with the 2 asserting a deal for 15% tariffs on European imports that might avert a transatlantic commerce conflict – however got here at a stiff value for the 27-country bloc.
After committing to a unilateral US increase on tariffs that got here on the heels of a Nato dedication to extend protection spending to five% of nationwide GDPs, von der Leyen then thanked Trump “for his private dedication and his management to attain this breakthrough”.
“He’s a tricky negotiator, however he’s additionally a dealmaker,” she stated, because the US president beamed.
The EU was certainly one of simply a lot of events to strike a take care of Trump earlier than his momentary pause on new tariffs got here to an finish this week. And like many others, the tenet for the EU seemed to be: it may possibly all the time worsen.
“That is clearly one of the best deal we might get beneath very troublesome circumstances,” Maroš Šefčovič, the EU commerce chief, stated.
Others had a far bleaker interpretation of the dynamics, as Trump has wielded the specter of sky-high tariffs to cudgel his buying and selling companions into submission.
“It’s a darkish day when an alliance of free peoples, introduced collectively to affirm their widespread values and to defend their widespread pursuits, resigns itself to submission,” wrote the French prime minister, François Bayrou.
Hungarian prime minister Viktor Orbán put it one other approach: “It was Donald Trump consuming Ursula von der Leyen for breakfast,” he stated on his podcast. Later, he known as her a “featherweight”.
World leaders have been pressured to undertake a place of appeasement and pragmatism as they’ve approached the Trump administration, which has swung between imposing staggering tariffs on imports after which asserting final minute pauses and exclusions that counsel there’s little rhyme or purpose to the White Home’s tariff technique.
However the important thing issue for Trump seems to be taking no matter he can get.
Nations throughout Asia exporting to the US have been quickest to start negotiating new commerce offers with the White Home. Vietnam was determined to chop a 46% tariff imposed on the nation, and Trump early final month introduced that he had negotiated a 20% charge with Vietnamese negotiators.
Besides, it turned out, they believed that that they had negotiated an 11% charge, Politico reported. And treasury secretary Scott Bessent this week admitted that he had by no means seen the deal, which the Vietnamese authorities have by no means confirmed.
Trump reportedly used the commerce threats together with different incentives as a way to dealer a recent peace between Thailand and Cambodia after fighting broke out along the border between the two countries. He quickly introduced a 19% charge – a big reduce from 49% for Cambodia and 36% for Thailand – which appeared extra motivated by worldwide politics than commerce concerns.
However whereas many nations within the area will breathe a sigh of reduction as they avert sky-high tariffs, some see a brand new hazard within the arbitrary redrawing of the US’s commerce relationship with the world.
“What we felt throughout this negotiation is that the US commerce atmosphere is essentially altering,” South Korean commerce minister Yeo Han-koo stated shortly after a deal was made to tariff imports at 15%, down from a threatened 25%.
The 2 sides had made a verbally settlement however had not made a proper draft, he stated, as a result of the deal needed to be struck so rapidly.
“I believe we’re coming into a brand new regular period,” he stated. “So, though we now have overcome this disaster, we can’t be relieved, as a result of we have no idea after we will face stress from tariffs or non-tariff measures once more.”
Leaders who’ve stood as much as Trump are having the toughest time. Amongst others, Trump has centered his ire on Canada, which he has blamed for the fentanyl disaster within the US, a cost that Canada’s prime minister Mark Carney has rejected.
Trump on Friday introduced that he would raise tariffs on Canada, a top trading partner, to 35%, as robust negotiations between the 2 sides continued.
Carney, who had coined the elections slogan “Elbows up, Canada” as a sign of defiance in opposition to Trump’s tariff and annexation threats, stated he was “disillusioned”.
“Whereas we’ll proceed to barter with america on our buying and selling relationship, the Canadian authorities is laser centered on what we will management: constructing Canada robust,” Carney stated.
