Keep calm and carry on as Brussels sidesteps Trump’s tariff threat

Good morning. Information to start out: German defence minister Boris Pistorius has stated it’s time for European arms corporations to stop complaining and start delivering, telling the Monetary Occasions that Berlin’s army spending splurge meant the trade had no extra excuses for sluggish manufacturing.

Right this moment, 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 youngsters on-line being unveiled right now.

Maintain fireplace

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

Context: The US president upped the stress on the EU on Saturday by announcing 30 per cent “reciprocal” tariffs from August 1. Months of negotiations between the US and the EU aimed toward securing a commerce deal have thus far 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 said that plans to hit €21bn of annual US imports with counter-tariffs tomorrow could be delayed.

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

Two diplomats stated a second retaliation package deal, anticipated to cowl €72bn of annual US imports, could be despatched to member states for deliberations right now.

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

Austrian Chancellor Christian Stocker stated Trump’s announcement was “regrettable”, including: “the EU will reply in a united method.”

However some governments are rising impatient with the passivity.

“It’s fairly embarrassing how timid and powerless we’re being on this course of,” stated one senior EU diplomat. “We have been instructed it might be a negotiation between companions nevertheless it’s mainly us sitting and ready for [Trump] to decide.”

“Countermeasures must come if negotiations fail,” one other stated.

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

“The context of the struggle in Ukraine inevitably limits the scope for motion and everyone seems to be dealing with the problem of coping with a mad rhino,” stated Ignacio Garcia Bercero, a former fee official and fellow on the Bruegel think-tank.

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

As ministers trickle in for right now’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 assist.

Chart du jour: Disconnected

The Netherlands is among the many quickest European international locations to affect essential components of the economic system, however grid bottlenecks are contributing to high electricity costs.

Verified

5 European international locations will begin testing a brand new age verification app to raised shield kids 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, equivalent to Meta and TikTok, are already below investigation for his or her probably addictive designs.

Right this moment, Virkkunen and Denmark’s minister for digital affairs Caroline Stage will announce new tips for safeguarding 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 folks 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 normal” for age assurance on-line, because it doesn’t permit monitoring particular person customers.

Along with that, the rules to be printed right now 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 kids reasonably than await governments to step in. “Platforms haven’t any excuse to be persevering with practices that put kids in danger”, Virkkunen stated.

What to observe right now

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

2. EU commerce ministers meet.

3. EU agriculture and fisheries ministers meet.

Now learn these