US President Trump: EU not yet offering a fair deal
US President Donald Trump said on Tuesday, “the European Union (EU) is not yet offering a fair deal.”
Additional quotes
US Treasuey Secretary Scott Bessent stayed at G7.
Chance of Japan deal, but they're "tough".
Reiterate threat to send letters with what tariffs he'll charge.
Pharma tariffs coming very soon.
Might do separate Canada deal for Golden Dome.
Canada will pay to join Golden Dome project.
Will probably extend TikTok deadline again.
Not too much in mood to negotiate with Iran.
Market reaction
Trump’s comments fail to move the needle around the US Dollar against its major currency rivals, with the US Dollar Index (DXY) posting smalls gains near 98.20, as of writing.
Tariffs FAQs
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.
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.
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.
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.
