EU eyes quick trade deal as Trump announces more tariffs

The European Union said Wednesday it could strike an outline trade deal with the United States within days — just as US President Donald Trump ramped up threats of new tariffs.

Trump, widening a trade war that has unsettled the global economy, announced a day earlier he would slap a 50% tariff on imported copper and soon roll out long-threatened levies on semiconductors and pharmaceuticals.

What is Trump threatening now?

Trump issued a fresh round of tariff letters targeting six countries, the White House confirmed Wednesday.

The letters call for tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines.

The US president had said that "a minimum of seven" new tariff notices would land Wednesday morning, with more to follow.

The latest threat comes a day after he sent tariff letters to 14 trading partners — including major trading partners South Korea and Japan — warning of 25% and higher duties from August 1.

Trump said trade talks with China and the EU were going "very well" and promised to reveal the EU's new export rates "probably" within two days.

"They treated us very badly until recently, and now they're treating us very nicely. It's like a different world, actually," he said on Tuesday. 

What is the EU expecting?

EU trade chief Maros Sefcovic told lawmakers good progress had been made on a framework agreement and a deal might be possible within days.

He told EU lawmakers he hoped that EU negotiators could finalize their work soon, with additional time now after the US deadline was extended from July 9 to August 1.

"I hope to reach a satisfactory conclusion, potentially even in the coming days," Sefcovic said.

However, Italian Economy Minister Giancarlo Giorgetti cautioned that talks remain "very complicated" and could drag on until the last moment.

If the new measures go ahead, they would push US tariffs to their highest levels since 1934. Markets shrugged off Trump's latest salvo, while the yen weakened further after Japan was hit with new tariff threats.

Edited by: Wesley Rahn