Economy

Tariff crisis  US-China relations
Trump: Has a deal with China

The US signed an agreement with China on Wednesday, says Donald Trump at a press conference.

– We have started to open up China, he says without giving any details about the agreement.

The comment comes in connection with the president saying that many countries now want to sign trade agreements with the US.

He also adds that an agreement with India – “maybe” – is in the works.

Tariff crisis  Trump's tariff policy
Sources: EU has received counterproposals on tariffs from the US

(Direkt) European Union leaders are discussing how they should respond to US President Donald Trump's latest trade proposal, after a briefing by Ursula von der Leyen. Bloomberg News reports this on Thursday evening.

At a summit in Brussels on Thursday, Ursula von der Leyen informed leaders that she had received a new tariff proposal from the United States. However, no further details were provided, according to officials familiar with the talks.

The central question for leaders and the Commission is whether to accept an asymmetric trade deal that benefits the United States, or risk escalating the tariff conflict through countermeasures, which could provoke an aggressive response from Trump.

Several member states opposed retaliation. A majority believed it was better to quickly conclude a deal with the United States, even if it means leaving many of Trump’s tariffs in place, than to wait in the hope of a more favorable deal, according to two people familiar with the discussions.

The deadline for trade negotiations between the United States and the EU expires on July 9.

Sources: EU on charm offensive – considering lowering US tariffs

The EU is considering lowering tariffs on US imports to appease Trump and secure a quick deal, according to sources to the WSJ.

Other concessions that are said to have been discussed include reducing trade barriers, buying American goods and cooperating with the US on its concerns about China.

Whether a trade deal can be reached will likely depend on whether Trump can claim a victory, according to the sources. But agreeing to a deal that clearly benefits the US is politically difficult and some have instead called for a tougher negotiating line ahead of the deadline. 

White House: Deadline can be extended - date not important

Donald Trump could extend the tariff break beyond the deadline set for July 9. This was stated by press secretary Karoline Leavitt during a press conference, media reports.

- If the countries do not offer us an agreement before the deadline expires, the president can simply determine the terms himself, she says and continues:

- This means that he can introduce tariffs that he thinks benefit the United States and American workers.

In late May, Trump threatened to impose 50 percent tariffs on the EU. Two days later, he agreed to postpone them until July 9, after European Commission President Ursula von der Leyen asked for more time to “get a good deal.”   

Tariff crisis  US growth
Larger trade deficit than expected in the US in May

The US deficit in foreign trade in goods was larger than expected last month. This is evident from statistics from the country's Department of Commerce, reports Direkt.

The trade deficit stood at 96.6 billion in May. This is 9.6 billion more than in the month before. Analysts had expected a deficit of 88.5 billion dollars, according to Trading Economics consensus data.

Bloomberg writes that the growing trade deficit can be traced to reduced exports. Merchandise exports fell by 5.2 percent in May. Among other things, significantly less American crude oil has been sold to other countries.

Reducing the trade deficit has been an important talking point for US President Donald Trump when he has justified his extensive tariffs against the rest of the world. 

Unexpectedly large GDP loss in the US – inflation higher than expected

New macro figures from the US give water to the mill for those who have warned of stagflation. Final GDP growth for the first quarter ended at minus 0.5 percent at an annual rate compared to the expected minus 0.2 percent, according to Trading Economics' compilation of estimates.

At the same time, core PCE rose 3.5 percent for the period against the expected 3.4.

Futures in the US react negatively while the Stockholm Stock Exchange's gains slow down.