Trump to notify trading partners of new tariffs in letters

US President Donald Trump sees no need to extend tariff truce beyond July 9, preferring to send a letter directly to trading partners setting out the tariffs they will have to pay, according to international media.

Donald Trump said on Fox News on Sunday: "I don't think I'm going to have to do it (to extend the truce). I could, it's not a big deal, but what I want to do and what I will do at some point, before July 9th, is send a letter to all these countries. There are 200 countries, you can't talk to them all. We're going to send a letter in which we will tell them "this is what you're going to have to do to buy in the United States, like in the big warehouses'". Trump stated that the Washington administration will set the tariffs and, if they are not accepted, he wishes "good luck" to the countries in question, since that will be the end of the agreement.

Recall that, in his new term as president, Donald Trump increased global customs duties which he then partially suspended, to give countries time to negotiate new trade agreements. During this period, the US has already concluded agreements with China and the United Kingdom.

On Friday, the US president announced the end of all trade negotiations between the United States and Canada, according to Reuters. Trump decided this following a tax established by Canada on digital services, applied to technology companies, which he classified as "a direct and blatant attack on the United States”. The American official stated: "Based on this outrageous tax, we are suspending all trade discussions with Canada, effective immediately. We will announce what tariff Canada will pay to do business with the United States within the next seven days”.

As a result, the Canadian government announced that it would cancel the tax, hoping to reach a trade agreement with the US. Canadian Finance Minister François-Philippe Champagne stated: "Canada will cancel the digital services tax. The resumption of negotiations must lead to a trade agreement with the United States by July 21”.

• Chinese Foreign Minister Wang Yi begins a tour of Europe on Monday, aiming to bolster trade ties with China, according to Beijing, as it seeks to make Sino-European relations a pillar of "stability" in the face of the United States and a rapidly changing world, AFP reports, according to news.ro.

His tour comes as Beijing seeks to strengthen ties with Europe in its confrontation with the United States, where President Donald Trump regularly describes China as his country's strategic rival. However, there are still differences between Beijing and Brussels, especially in the economic field. These include the massive trade deficit with the EU ($357.1 billion), the close ties between Beijing and Moscow despite the war in Ukraine, additional European tariffs on electric vehicles made in China and Chinese retaliation against French cognac.

"Sino-European relations are facing important opportunities at a time when the world is facing an acceleration of historical transformations, with the worrying rise of unilateralism, protectionism and hegemonic behaviors," said Guo Jiakun, a spokesman for Chinese diplomacy, on Friday, in a veiled criticism of the United States and its trade war.

In this context, China and the EU must "jointly maintain world peace and stability, defend multilateralism and free trade, uphold international norms, fairness and justice, and assert themselves as stabilizing and constructive forces in a troubled world," Jiakun stressed.

• Who is Wang Yi meeting in Europe

In Brussels, Wang Yi is planning to meet with the head of European diplomacy, Kaja Kallas, for a "high-level strategic dialogue," according to Beijing. During his visit to Germany, he will meet with Foreign Minister Johann Wadephul for talks on diplomatic and security issues. This is Wang's first visit to Germany since a new conservative government was installed in Berlin in May. In France, the Chinese minister will meet with his counterpart Jean-Noël Barrot, who visited China in March.

• Ukraine war on the agenda of Sino-European talks

The war in Ukraine is also expected to be on the agenda of its talks in Europe, according to the cited source. China regularly calls for peace negotiations and respect for the territorial integrity of all countries, including Ukraine. However, China has never condemned Russia and has strengthened its trade, diplomatic and military relations with Moscow since the beginning of the Russian invasion in February 2022. Europeans regularly accuse Beijing of providing Moscow with crucial economic support for its war effort.

On the trade front, Sino-European relations have become tense in recent years. The EU mainly reproaches the Asian giant for economic practices it considers unfair. The dispute intensified with the introduction, last year, by the European Union of additional customs duties on electric vehicles made in China. In retaliation, Beijing has targeted French cognac in particular, with Paris being one of the main backers of these additional taxes on cars made in China.

Regarding cognac, "an agreement has been reached but has not yet been officially validated by the Chinese Ministry of Commerce,” according to a source at the Ministry of Economy in Paris.

In addition, the European Commission decided two weeks ago to exclude Chinese companies from public contracts for medical equipment worth more than five million euros. The measure was taken in the name of restrictions imposed on European companies on the Chinese market. In response, Beijing criticized Brussels' "double standards.”

Another point of bilateral friction is rare earths. Since April, Chinese authorities have required Chinese companies to obtain licenses to export these strategic materials, a sector in which China is a major global player. These metals are used in a wide variety of products, notably for smartphones and batteries for electric cars. Industries, particularly in the auto sector, have since denounced the stingy export permits. However, in June, China proposed to the EU the creation of a "green channel,” or priority access, to facilitate rare earth exports to the old continent.