The euro has fallen on this headline. The report said:
- After a two-hour meeting, EU trade chief Maros Sefcovic left unclear on US goals.
- The US officials indicated that the 20% “reciprocal” tariffs — which have been reduced to 10% for 90 days — as well as other tariffs targeting sectors including cars and metals would not be removed outright
- The US would like to see European chemical firms produce more precursors used in the pharmaceutical industry in the US, integrate supply chains, have preferential procurement and suggested the bloc should increase the price of its medicines
- Trump officials have so far shown little appetite in exploring more LNG purchases to avoid tariffs
- US said has insisted on discussing what the US perceives as non-tariff barriers such as digital and artificial intelligence regulations as well as food standards
The EU had proposed to the US a regime of reciprocal zero tariffs on autos and industrial goods but that evidently didn’t gain any traction with the US. That’s evidently been rejected, though the US did hint at a way forward with Europe buying more US goods.
There is also a report from earlier suggesting the US was asking for Europe to isolate China in return for lower tariffs.
In any case, the picture isn’t looking good as there are some major differences of opinion highlighted here.
The S&P 500 has also turned negative a short time after hitting a session high of +0.8%.
This article was written by Adam Button at www.forexlive.com.