according to materials from the site - By Cryptopolitan_News

The European Union is seeking to strengthen cooperation with other economies in response to President Donald Trump's recent warning about new tariffs on its products.

According to Bloomberg, EU sources report plans to start negotiations with key partners, including Canada and Japan, to assess ways to coordinate their responses.
Earlier, European Commission President Ursula von der Leyen confirmed that the moratorium on reciprocal tariffs would be extended until August 1, providing negotiators with additional time. Planned retaliatory measures against the tariffs imposed by Trump on steel and aluminum were set to take effect at midnight.

'At the same time, we will continue to prepare further countermeasures to be fully ready,' von der Leyen told reporters in Brussels, emphasizing that the EU still hopes to reach a resolution through negotiations.

The current list includes the imposition of tariffs on American goods worth about €21 billion ($24.5 billion). A broader package of measures, including export controls worth about €72 billion, will be ready for approval by the capitals of member states by Monday, officials report.

She explained that the bloc's 'anti-coercion instrument', designed to respond to crises, remains inactive. 'The MCA is created for emergencies. We are not yet prepared for them,' she said.

On social media, President Emmanuel Macron responded to the threat by calling on EU leaders to accelerate the development of effective response measures, potentially involving the MCA if an agreement is not reached by August 1.

On Sunday in Berlin, Chancellor Friedrich Merz warned that a 30% surcharge would deal a serious blow to exporters across Europe if a compromise is not reached. He stated that the tariffs would be 'deeply impactful'. He added: 'Two things are necessary for this: unity of the European Union and established communication with the President of the United States.'

The President sent letters to several trading allies, changing previously proposed tariff rates from April and calling for a resumption of dialogue. In one letter published on Saturday, the EU was warned of an impending 30% tariff next month if more favorable terms are not reached.

Brussels is trying to avoid higher tariffs from the US, but the letter has dampened those hopes. Countries like Mexico have also been stunned by similar notifications.

Insiders indicate that the bloc's goal is to limit tariffs on agricultural products to 10% or lower. Ideas for an 'investment in exchange for concessions' scheme, where an influx of American capital would lead to reduced tariffs for automakers, have been shelved due to concerns about encouraging offshoring.

Negotiators have shifted their focus to reducing tariffs on vehicles, and bilateral talks are expected to resume later this week.

Washington has proposed a comprehensive 10% surcharge on EU products, largely excluding the aerospace industry and the medical devices sector. In response, Brussels insists on lowering tariffs on wine and spirits and advocates for limiting quotas to soften existing 50% tariffs on metals. American negotiators, in turn, have proposed a 17% tariff on agricultural products.

Any preliminary agreement would additionally cover regulatory barriers, cooperation on economic security, and strategic procurement. Aside from the upcoming universal tariffs, Trump imposed 25% tariffs on cars and parts, as well as increased tariffs on metals to 50%.

He also plans to introduce sectoral tariffs on pharmaceuticals, semiconductors, and, most recently, copper. Officials warn that even if a broad agreement is reached, separate assurances will be needed to protect the EU from these targeted measures.

On Monday morning, the euro fell to a three-week low, then rebounded to $1.1679, while the peso weakened against the rising dollar to 18.6699 Mexican pesos.

The pound sterling declined by 0.07% to $1.3481, while the yen rose by 0.1% to 147.28 per dollar. The Australian dollar fell by 0.14% to $0.6565, and the New Zealand dollar by 0.4% to $0.5984.

Aside from trade, Trump stated on Sunday that Powell's departure would be a 'remarkable event', putting additional pressure on the Fed as he called for interest rate cuts on borrowing. Traders will await the US consumer price report on Tuesday for June to gain insight into the central bank's next moves; most predict a slight rise in inflation and a rate cut of about 50 basis points by the end of the year.

Trade data from Asia for June showed an increase in Chinese exports and a recovery in imports as companies rushed to make shipments ahead of the August deadline. However, the yuan remained subdued, trading at around 7.1704 in the domestic market and 7.1713 offshore per dollar.


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