EU aims for US trade talks to extend past Trump’s July deadline – Bloomberg

Dhwani Mehta FXStreet

Citing people familiar with the matter, Bloomberg reported on Wednesday that the European Union (EU) believes trade negotiations with the United States (US) to extend beyond President Donald Trump’s July 9 deadline.

“The US is expected to respond to the latest round of negotiations in the coming days and provide clarity on the next steps,” Bloomberg reported.

The EU and US face a July 9 deadline to avert tariffs after a temporary reprieve granted by President Trump.

Market reaction

EUR/USD remains on the defensive following these headlines, losing 0.13% on the day to trade near 1.1410 at the press time.

Tariffs FAQs

What are tariffs?

Tariffs are customs duties levied on certain merchandise imports or a category of products. Tariffs are designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.

What is the difference between taxes and tariffs?

Although tariffs and taxes both generate government revenue to fund public goods and services, they have several distinctions. Tariffs are prepaid at the port of entry, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and businesses, while tariffs are paid by importers.

Are tariffs good or bad?

There are two schools of thought among economists regarding the usage of tariffs. While some argue that tariffs are necessary to protect domestic industries and address trade imbalances, others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.

What is US President Donald Trump’s tariff plan?

During the run-up to the presidential election in November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy and American producers. In 2024, Mexico, China and Canada accounted for 42% of total US imports. In this period, Mexico stood out as the top exporter with $466.6 billion, according to the US Census Bureau. Hence, Trump wants to focus on these three nations when imposing tariffs. He also plans to use the revenue generated through tariffs to lower personal income taxes.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD looks weaker, focus is back to 0.7100

AUD/USD reverses Tuesday’s gains and retreats markedly toward four-day troughs in the low 0.7100s ahead of the opening bell in Asia. The firmer tone in the Greenback weighs on the risk complex amid unabated tensions on the US-Iran front, prompting the Aussie to shed part of recent gains and refocus on the downside. Moving forward, Australian trade balance results should entertain investors early on Thursday.

Japanese Yen bounces up from lows after Japan PM Takaichi’s intervention warnings

The Japanese Yen bounced up from five-week lows against the US Dollar, turning positive on the daily chart, as Japan’s Prime Minister Sanae Takaichi warned that Tokyo is ready to take action against Yen weakness. The USD/JPY pair has pulled back from the 160.00 level, considered a line in the sand for Japanese authorities, to hit session lows at 159.55.

Gold remains under bearish pressure, looks at $4,400

Gold keeps the offered stance well in place, retreating toward the $4,430 region per troy ounce, or four-day lows, on Wednesday. The yellow metal’s retracement comes in response to escalating tensions in the Middle East, which in turn continue to drive oil prices higher while reinforcing the idea of a tighter-for-longer Fed.

XRP eyes rebound despite muted ETF demand

Ripple (XRP) rebounds above $1.23 from support at $1.20 at the time of writing on Wednesday, as the broader cryptocurrency market pares losses triggered by escalating tensions in the Middle East. Appetite for risk assets remains generally low as the United States (US) and Iran exchange fire amid a fragile ceasefire and peace negotiations.

The upside-down math of debt

In 2010, Professors Carmen Reinhart and Kenneth Rogoff published a paper, Growth in a Time of Debt, which instantly went viral. The main thesis of the paper was that once a government's debt-to-GDP ratio crosses above 90%, a financial crisis and default are around the corner.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.