WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
European Union leaders enter a crucial day of trade talks with America today, as concerns grow over Washington's announcement of new tariffs. EU trade ministers are meeting in Brussels to agree on a joint response to Donald Trump's threat to impose 30% tariffs on most European and Mexican imports. Markets are already reacting, political pressure is mounting, and messages are coming from Brussels that the Union is ready for all options – both for negotiation and for response.
We provide a chronological overview of the statements and decisions below.
19:26 Tariff threat complicates ECB's July decision, but won't stop rate cut pause
Donald Trump's threat to impose a 30% tariff on European Union imports is complicating the European Central Bank's (ECB) decision-making, but is unlikely to derail plans for a pause in interest rate cuts next week, five ECB officials told Reuters.
The ECB signaled after its June meeting that it would likely keep interest rates unchanged on July 23-24.
But the 30% tariff announced by Trump is significantly higher than the ECB had expected, even in the darkest of three scenarios for the euro zone economy it published last month.
That means the ECB has been forced to make new assessments and its policymakers are considering the possibility of an even worse outcome than they thought in June, the sources, all of whom are members of the ECB's Governing Council, said.
Still, governors remain wary of acting on what is still just a threat, especially given the Trump administration’s often contradictory statements since it first announced global tariffs in April.
That’s why any discussion of interest rate cuts is likely to be postponed until the ECB’s September meeting, sources said.
18:02 Rasmussen: EU must not underestimate its strength
Danish Foreign Minister Lars Lokke Rasmussen criticized Trump’s threats of 30% tariffs on the 27-nation bloc.
“Our American friends have made one deal and 23 threats,” he said, adding that the EU must not underestimate its strength.
17:51 Trump says he is open to trade talks with Europe
When asked by reporters whether he would allow European countries to negotiate lower tariff rates before the August 1 deadline, Trump replied: “The deals have already been made. The letters are the deals.”
“They would like a different deal, and we are always ready to talk,” he said, adding: “Actually, they come, they want to talk.”
15:37 How much did the US collect from tariffs?
US tariff revenue rose again in June as Trump’s tariffs took effect, surpassing $100 billion for the first time in a fiscal year, the Treasury Department said on Friday.
Budget data showed that tariffs quadrupled in June on a gross basis, to $27.2 billion, and on a net basis, after rebates, to $26.6 billion.
For the first nine months of fiscal 2025, tariff revenue hit records of $113.3 billion on a gross basis and $108 billion on a net basis, nearly double the previous year.
US Treasury Secretary Scott Besant wrote on X on Friday that the results show the US is "receiving the fruits" of Trump's tariff policies.
14:38 Italian Chianti wine producers set their sights on South America, Asia
Producers of Italy's famous Chianti wine are seeking a new export strategy, with EU support, focusing on markets such as South America, Asia and Africa.
The initiative comes after Trump threatened additional tariffs on European imports.
Italy exports more wine to the US than any other country, but with trade uncertainty, producers are looking to diversify their markets.
"There is no point in feeling sorry for ourselves. This should be seen as an opportunity to accelerate a new export strategy, focused on alternative and more stable markets," said Giovanni Busi, president of the Vino Chianti Consortium, an association of Chianti wine producers in Tuscany.
Last year, Italy exported 2 billion euros ($2.3 billion) worth of wines, spirits and vinegar to the United States, a quarter of total global sales, according to industry group Federvini.
14:21 “I think it will backfire on him,” EU analyst says of Trump’s threat
“Trump thinks he can get a deal by threatening escalation,” said Jakob Funk Kirkegrad, a senior researcher at the Brussels-based Bruegel Institute.
“I think it will backfire on him.”
If a deal is not reached by August 1, “then we are in a trade war and we have to see where it takes us,” Kirkegrad warned.
13:49 “Toxic uncertainty” for companies, Germany’s VDMA warns
A 30% tariff on EU imports, announced over the weekend, will stifle investment and lead to deindustrialization in the world’s largest economy, the German machinery and equipment manufacturers’ association (VDMA) said today.
"The new delay only prolongs the toxic uncertainty for companies on both sides of the Atlantic. This slows down investment and weakens economic growth in both the US and Europe," VDMA Director Tilo Brodtman said in a statement.
13:27 Mercedes-Benz: Trade agreement should be reached as soon as possible
German luxury car manufacturer Mercedes-Benz said today that an agreement between the EU and the United States is crucial for the future economic success of both markets.
"It is therefore the responsibility of all parties involved to continue to work intensively and as quickly as possible to reach a trade agreement," the company said.
"As a global company, we stand for constructive cooperation and a political framework that encourages economic exchange in international markets."
"It is now important that the EU and the US remain in constructive dialogue and reach a fair agreement through negotiations - in the interests of both parties," it added.
12:40 Seoul also announces a framework trade deal with the US by the August 1 deadline
South Korea believes it is possible to reach an "agreement in principle" with the United States by the August 1 deadline, South Korean Trade Minister Jeo Han-ku said today, according to local media.
He also hinted that Seoul could consider opening up its agricultural market to the US more widely.
"I think it is possible to reach an agreement in principle on tariff negotiations with the US and then allow additional time for further coordination," Han-ku said, according to Newsis.
The minister participated in high-level talks with US officials last week, and according to media reports, Seoul's goal is to avoid the introduction of "unfair" US tariffs that could undermine industrial cooperation with a key security ally and trading partner.
"Twenty days is not enough to conclude a perfect agreement with all the details," Jeo added.
South Korea is trying to reach a compromise trade deal to avoid a 25% tariff on its exports – the same rate as Japan has already faced.
11:52 Šefčovič: I can’t imagine giving up without any effort
European Trade Commissioner Maroš Šefčovič said the EU was continuing to work with the US administration.
“We continue to work with the US administration and we give priority to a negotiated solution by the new deadline of 1 August. I can’t imagine giving up without any effort,” he said.
However, he added, the EU must be prepared for all outcomes – “including, if necessary, carefully considered and proportionate countermeasures to re-establish the balance.”
He also stressed that a 30% tariff would make it almost impossible to continue trade as it has been, with huge consequences for supply chains and a negative impact on both sides of the Atlantic.
"That's why I think we have to do our best - and I will certainly do my best - to prevent this extremely negative scenario," Šefčovič told reporters ahead of a meeting of EU ministers.
10:44 EU ready to impose €21 billion worth of US tariffs if no deal, Italian minister says
The European Union has already prepared a list of tariffs worth €21 billion on US goods if the two sides fail to reach a trade deal, Italian Foreign Minister Antonio Tajani said today.
Tajani said in an interview with the newspaper Il Messaggero that this package of tariffs could be followed by a second round if a deal with the United States is impossible.
He added, however, that he believes there is room for progress in the negotiations.
"Tariffs hurt everyone, starting with the United States," he said. "If the stock markets fall, it puts Americans' pensions and savings at risk."
10:07 Danish Foreign Minister: Ready for all options
Danish Foreign Minister Lars Løkke Rasmussen said it was too early to introduce countermeasures, but he hoped the EU would remain united on the issue.
“But we need to prepare ourselves to be ready to use all options,” he added this morning ahead of the meeting in Brussels. “If you want peace, you have to prepare for war. And I think that’s where we are.”
10:01 Eurozone bond yields hit April highs
German 10-year government bond yields briefly hit their highest since early April after Donald Trump announced a 30% tariff on most EU imports from August 1.
German benchmark bond yields rose to 2,733% in early trading, their highest since April 1 – the day before Trump initially announced the “Liberation Day” tariffs. By the end of the morning, they had stabilized at 2,726%, where they were at Friday's close.
Yields on 30-year bonds were around 3,236%, up about one basis point from a day earlier and close to their mid-March highs.
Trump announced the latest round of tariffs in letters to European Commission President Ursula von der Leyen and Mexican President Claudia Scheinbaum, which were published on the Truth Social network on Saturday.
09:57 European markets fall on new tariffs threats
European shares fell early in the trading day, led by the auto sector, as Trump's latest threat to impose 30% tariffs on EU and Mexican products added to investor uncertainty.
The pan-European STOXX 600 index fell 0.6% to 544.3 points by 07:06 GMT. Other regional indices also fell, except for Britain's FTSE 100, which rose 0.2%.
In response to Trump's threat on Saturday, the EU said yesterday it would extend the suspension of countermeasures against US tariffs until early August and continue to insist on a negotiated deal.
09:51 EU and US 'close to deal', says EU trade commissioner
The European Union and the United States are close to reaching a mutually beneficial solution in trade talks, European Trade Commissioner Maroš Šefčovič said today.
“Our assessment is that we are very close to an agreement,” Šefčovič said ahead of a meeting with EU trade ministers in Brussels.
He added that the 30% tariff that Trump has threatened to impose on the EU would effectively wipe out trade.
09:48 Trump seeks further concessions while EU does not yet impose countermeasures
EU trade ministers are meeting in Brussels today to discuss the next steps in negotiations with the US.
The European Union announced yesterday that it would extend the suspension of countermeasures on US tariffs until early August and continue to seek a solution through negotiations.
It comes as President Trump’s administration seeks further concessions from trading partners.
Trump announced on Saturday that he would impose a 30% tariff on most products from the EU and Mexico from August 1, further increasing the pressure, leaving less than three weeks for agreements that could ease the proposed rate.
Ursula von der Leyen, the president of the European Commission who leads trade policy for the 27 member states, said the EU would continue with a dual approach: continuing dialogue, but also preparing countermeasures.
“We have always made it clear that we prefer a negotiated agreement. That has not changed and we will use the time we have,” von der Leyen said at a press conference yesterday, adding that the EU would extend the suspension of countermeasures until August.
