Hold calm and keep it up as Brussels sidesteps Trump’s tariff risk

Good morning. Information to begin: German defence minister Boris Pistorius has mentioned it’s time for European arms corporations to cease complaining and begin delivering, telling the Monetary Occasions that Berlin’s navy spending splurge meant the business had no extra excuses for gradual manufacturing.

At present, our reporters deliver you in control on a busy weekend within the EU-US commerce stand-off as Brussels shrugged off Donald Trump’s newest risk, and Laura joins our tech correspondent to report on new tips to guard children on-line being unveiled right this moment.

Maintain fireplace

To retaliate, or to not retaliate — that’s the query occupying EU commerce ministers right this moment, as they meet in Brussels to debate Donald Trump’s tariff conflict, write Andy Bounds and Alice Hancock.

Context: The US president upped the strain on the EU on Saturday by saying 30 per cent “reciprocal” tariffs from August 1. Months of negotiations between the US and the EU geared toward securing a commerce deal have to this point solely resulted in elevating the tariff risk from the unique 20 per cent.

In response to the newest enhance, European Fee president Ursula von der Leyen yesterday mentioned that plans to hit €21bn of annual US imports with counter-tariffs tomorrow can be delayed.

She mentioned the EU would preserve speaking till subsequent month’s deadline.

Two diplomats mentioned a second retaliation bundle, anticipated to cowl €72bn of annual US imports, can be despatched to member states for deliberations right this moment.

EU ambassadors met yesterday to be briefed on the talks, and have been largely supportive of the fee’s present method, in response to individuals accustomed to the discussions.

Austrian Chancellor Christian Stocker mentioned Trump’s announcement was “regrettable”, including: “the EU will respond in a united manner.”

However some governments are rising impatient with the passivity.

“It’s quite embarrassing how timid and powerless we are being in this process,” mentioned one senior EU diplomat. “We were told it would be a negotiation between partners but it’s basically us sitting and waiting for [Trump] to make a decision.”

“Countermeasures will have to come if negotiations fail,” one other mentioned.

One unstated concern is that Trump would retaliate in different methods, as an illustration reducing US arms gross sales to Ukraine or pulling troops out of Europe. “He has escalation dominance,” mentioned a 3rd EU diplomat.

“The context of the war in Ukraine inevitably limits the scope for action and everyone is facing the challenge of dealing with a mad rhino,” mentioned Ignacio Garcia Bercero, a former fee official and fellow on the Bruegel think-tank.

Business leaders and agricultural teams have additionally lobbied in opposition to tariff measures that would immediate Trump to reply with even larger levies. One mentioned they would like the knowledge of fastened tariffs to fixed modifications (although they anticipated 10 per cent, moderately than the newest determine).

As ministers trickle in for right this moment’s assembly, anticipate public declarations that the EU is able to reply. However in non-public, most will endorse the fee’s cautious strikes and pray the bond and inventory markets come to their help.

Chart du jour: Disconnected

The Netherlands is among the many quickest European nations to affect important components of the financial system, however grid bottlenecks are contributing to excessive electrical energy prices.

Verified

5 European nations will begin testing a brand new age verification app to raised shield youngsters on-line, write Barbara Moens and Laura Dubois.

Context: The EU’s tech chief Henna Virkkunen has made the digital safety of minors a key focus. A number of tech corporations, akin to Meta and TikTok, are already below investigation for his or her doubtlessly addictive designs.

At present, Virkkunen and Denmark’s minister for digital affairs Caroline Stage will announce new tips for shielding minors on-line, in addition to a prototype for an age verification app.

Denmark, France, Italy, Spain and Greece will participate within the pilot for the age verification app, in response to individuals accustomed to the launch.

The app, a precursor to the EU’s digital identification pockets due in 2026, will permit customers to confirm their age with out disclosing private info to platforms. The EU’s thought is to make this the “gold standard” for age assurance on-line, because it doesn’t permit monitoring particular person customers.

Along with that, the rules to be revealed right this moment will present suggestions on addressing addictive design of on-line platforms, cyberbullying, undesirable contact from strangers and dangerous content material, in response to a draft seen by the FT.

Virkkunen has been urging tech corporations to voluntarily undertake measures to raised shield youngsters moderately than look forward to governments to step in. “Platforms have no excuse to be continuing practices that put children at risk”, Virkkunen mentioned.

What to look at right this moment

1. Nato secretary-general Mark Rutte travels to Washington for a two-day go to.

2. EU commerce ministers meet.

3. EU agriculture and fisheries ministers meet.

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