Trump shifts gears to EU after striking Japan deal

US President Donald Trump announced a framework agreement with Japan and determined its landscapes on trade negotiations with the European Union.

“Europe comes tomorrow and the next day, we have another place, Tr Trump said without specifying the details late on Tuesday.

The pressure of the EU and the US negotiators increased to reach an agreement until August 1st, and the Trump administration seemed intended not to replace the timeline in the tariffs.

30% taxes on the US imports from the EU will come into force next month, and the counter -measures from Brussels are pursuing potentially after a short time. The first tranche of retaliation tariffs from the EU, which aims to import 21 billion euros from the USA, is currently waiting for additional records until August 6.

However, the US-Japanese agreement seems to have spread a positive feeling among experts.

“The Japan agreement significantly increased hopes that the EU can reach a trade agreement,” Deutsche Bank research strategists and economists in Wednesday notes. He said.

Katsuhiko Aiba, an economist in Citi, proposed as a separate note that the thinner details of Japan’s agreement with the United States may affect negotiations with the EU.

“It is noteworthy that automatic tariffs are unlimited in automatic exports for a large automatic export country, and reduce their effects on negotiations with the EU and South Korea.”

The US-Japanese agreement contains a basic tariff ratio of 15%, and Reuters said that taxes on the automobile will be cut down from 25% currently available.

For some key sectors, exemptions or lower rates have long been in the EU’s trade agreement request list for a long time, and analysts expect that the block can accept a basic tariff in exchange for these sectoral provisions.

Road vehicles are among the top three exports from the EU to the USA. Council of Europe.

Pan-Europe Stoxx 600 The index traded 1% on Wednesday, about an hour after the markets were opened, and the cars jumped by about 3.5%.

While waiting for updates on trade negotiations with Europe, the European Commission President Ursula von der leyen and President of the Council of Europe Antonio Costa travels to Asia. Before the EU-China Summit on Thursday, they will meet Japanese leaders on Wednesday, and trade is probably one of their agenda.

In his statement to CNBC, Trump’s protectionist trade policies worse the existing tensions between the EU and China. Beijing said that the US could put pressure on the EU’s attitude over China to sharpen it.

EU Trade Commissioner Maros Sefcovic said that on Tuesday, a mission in X on Tuesday, “he had an important video meeting with Chinese Trade Minister Wang Wentao without further details.