Tensions between NATO allies, the US and the EU, escalated after President Trump announced 10 per cent tariffs on eight European countries over their opposition to his plan to acquire Greenland from Denmark.

Tensions between United States and the European Union sharply escalated after President Trump announced 10 per cent tariffs on eight European countries over their opposition to his plan to acquire Greenland from Denmark.

US vs EU: Where does European bloc stands in comparison to America | See in pics

France's President Emmanuel Macron will push the European Union to exercise its powerful anti-coercion instrument against the United States if President Donald Trump imposes tariffs against the European countries in efforts to acquire Greenland, his team said on Sunday (17 Jan), AFP reported.&nbsp;The group's trade-defence tool, never used before, is described as a weapon against coercion by imposing a blockade on imports of goods and services from a hostile country to protect the EU and its member states from economic pressure or intimidation by non-EU countries.&nbsp;The European Union’s Anti-Coercion Instrument (ACI) allows the bloc to act collectively when a non-EU country uses or threatens economic measures to force policy changes. It enables the European Commission to investigate coercion, seek dialogue, and, if needed, impose proportionate countermeasures such as tariffs, trade restrictions, investment limits, or exclusion from EU public procurement. The tool can be invoked when economic pressure is used to undermine the EU’s or a member state’s sovereign decisions.&nbsp;The development comes after US President Donald Trump on Saturday ramped up his efforts to acquire Greenland, threatening eight members of the European Union, including Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, accusing them of "playing this very dangerous game" by journeying to Greenland for a “purpose unknown.”&nbsp;Also Read: <a href="https://www.wionews.com/world/european-union-calls-urgent-meeting-after-trump-threatens-tariffs-over-greenland-1768734323939">European Union calls emergency meeting after Trump threatens tariffs over Greenland</a>&nbsp;While most European countries responded cautiously to Trump’s move, stressing shared values and warning that it could undermine the Western alliance, France struck a far sharper tone, condemning the US president’s threats by drawing a direct parallel with Russia’s actions in Ukraine. “No intimidation or threat will influence us—neither in Ukraine, nor in Greenland, nor anywhere else in the world when we are confronted with such situations,” President Emmanuel Macron wrote on X.&nbsp;Italy's Meloni, who is considered an ideological ally of President Donald Trump, dubbed the threat to slap tariffs on opponents of his plan to seize Greenland a "mistake" on Sunday, adding she had told him her views.&nbsp;"I believe that imposing new sanctions today would be a mistake," Prime Minister Giorgia Meloni told journalists during a trip to Seoul, adding that “I spoke to Donald Trump a few hours ago and told him what I think.”

The European Union’s Anti-Coercion Instrument (ACI) allows the bloc to act collectively when a non-EU country uses or threatens economic measures to force policy changes.

France's President Emmanuel Macron will push the European Union to exercise its powerful anti-coercion instrument against the United States if President Donald Trump imposes tariffs against the European countries in efforts to acquire Greenland, his team said on Sunday (17 Jan), AFP reported. The group's trade-defence tool, never used before, is described as a weapon against coercion by imposing a blockade on imports of goods and services from a hostile country to protect the EU and its member states from economic pressure or intimidation by non-EU countries. The European Union’s Anti-Coercion Instrument (ACI) allows the bloc to act collectively when a non-EU country uses or threatens economic measures to force policy changes. It enables the European Commission to investigate coercion, seek dialogue, and, if needed, impose proportionate countermeasures such as tariffs, trade restrictions, investment limits, or exclusion from EU public procurement. The tool can be invoked when economic pressure is used to undermine the EU’s or a member state’s sovereign decisions. The development comes after US President Donald Trump on Saturday ramped up his efforts to acquire Greenland, threatening eight members of the European Union, including Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, accusing them of "playing this very dangerous game" by journeying to Greenland for a “purpose unknown.” Also Read: European Union calls emergency meeting after Trump threatens tariffs over Greenland While most European countries responded cautiously to Trump’s move, stressing shared values and warning that it could undermine the Western alliance, France struck a far sharper tone, condemning the US president’s threats by drawing a direct parallel with Russia’s actions in Ukraine. “No intimidation or threat will influence us—neither in Ukraine, nor in Greenland, nor anywhere else in the world when we are confronted with such situations,” President Emmanuel Macron wrote on X. Italy's Meloni, who is considered an ideological ally of President Donald Trump, dubbed the threat to slap tariffs on opponents of his plan to seize Greenland a "mistake" on Sunday, adding she had told him her views. "I believe that imposing new sanctions today would be a mistake," Prime Minister Giorgia Meloni told journalists during a trip to Seoul, adding that “I spoke to Donald Trump a few hours ago and told him what I think.”

The European Union’s Anti-Coercion Instrument (ACI) allows the bloc to act collectively when a non-EU country uses or threatens economic measures to force policy changes.

French President Macron seeks EU action under anti-coercion instrument against Trump tariffs over Greenland: Report

The leaders and ambessadors of European coutries will gather in Brussels on Sunday (Jan 18) to hold an emergency meeting of the European Union after US President Donald Trump threatened multiple countries of the bloc with tariffs including Denmark Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland until a deal is reached to cede control of Greenland to America.&nbsp;Several key countries of the European bloc, such as France, Sweden and Germany, along with members of the European Parliament, expressed their strong opposition to tariff threats and Trump's territorial ambitions to bring the Danish territory under US control.&nbsp;The president of the European Parliament, Roberta Metsola, warned that “The measures against NATO allies announced today will not help in ensuring security in the Arctic," they will result in emboldening our joint enemies and those who wish to destroy our common values and way of life," she wrote in a post on X.&nbsp;“Greenland and Denmark have both made clear: Greenland is not for sale, and its sovereignty and territorial integrity need to be respected. No threat of tariffs can or will change that fact," She added. Kaja Kallas, the vice president of the European Commission, asserted that "China and Russia “must be having a field day after Trump's announcement, adding that they will be the only beneficiaries of "divisions among Allies."&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-threats-10-tariff-on-uk-france-germany-and-other-european-countries-over-greenland-warns-of-25-hike-1768668994149">‘Dad, I’m drowning...’: Noida techie’s final call for help after car plunges in ditch amid fog</a>&nbsp;“If Greenland’s security is at risk, we can address this inside NATO,” Kallas wrote on X. “Tariffs risk making Europe and the United States poorer and undermining our shared prosperity.”&nbsp;While most European nations took a soft tone to slam Trump's move, invoking shared values and risk of derailing the Western alliance, France, on the other hand, denounced the US president's threats by drawing a parallel between Russia and Ukraine. "No intimidation or threat will influence us—neither in Ukraine, nor in Greenland, nor anywhere else in the world when we are confronted with such situations," President Emmanuel Macron wrote on X.&nbsp;"Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld. It is in this spirit that I will engage with our European partners," he added.&nbsp;These developments come after US President Donald Trump on Saturday ramped up his efforts to acquire Greenland, threatening multiple European countries, including Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, accusing them of "playing this very dangerous game" by journeying to Greenland for a “purpose unknown.”

While most European nations took a soft tone to slam Trump's move, invoking shared values and risk of derailing the Western alliance, France, on the other hand, denounced the US president's threats by drawing a parallel between Russia and Ukraine.

The leaders and ambessadors of European coutries will gather in Brussels on Sunday (Jan 18) to hold an emergency meeting of the European Union after US President Donald Trump threatened multiple countries of the bloc with tariffs including Denmark Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland until a deal is reached to cede control of Greenland to America. Several key countries of the European bloc, such as France, Sweden and Germany, along with members of the European Parliament, expressed their strong opposition to tariff threats and Trump's territorial ambitions to bring the Danish territory under US control. The president of the European Parliament, Roberta Metsola, warned that “The measures against NATO allies announced today will not help in ensuring security in the Arctic," they will result in emboldening our joint enemies and those who wish to destroy our common values and way of life," she wrote in a post on X. “Greenland and Denmark have both made clear: Greenland is not for sale, and its sovereignty and territorial integrity need to be respected. No threat of tariffs can or will change that fact," She added. Kaja Kallas, the vice president of the European Commission, asserted that "China and Russia “must be having a field day after Trump's announcement, adding that they will be the only beneficiaries of "divisions among Allies." Also Read: ‘Dad, I’m drowning...’: Noida techie’s final call for help after car plunges in ditch amid fog “If Greenland’s security is at risk, we can address this inside NATO,” Kallas wrote on X. “Tariffs risk making Europe and the United States poorer and undermining our shared prosperity.” While most European nations took a soft tone to slam Trump's move, invoking shared values and risk of derailing the Western alliance, France, on the other hand, denounced the US president's threats by drawing a parallel between Russia and Ukraine. "No intimidation or threat will influence us—neither in Ukraine, nor in Greenland, nor anywhere else in the world when we are confronted with such situations," President Emmanuel Macron wrote on X. "Tariff threats are unacceptable and have no place in this context. Europeans will respond in a united and coordinated manner should they be confirmed. We will ensure that European sovereignty is upheld. It is in this spirit that I will engage with our European partners," he added. These developments come after US President Donald Trump on Saturday ramped up his efforts to acquire Greenland, threatening multiple European countries, including Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland, accusing them of "playing this very dangerous game" by journeying to Greenland for a “purpose unknown.”

While most European nations took a soft tone to slam Trump's move, invoking shared values and risk of derailing the Western alliance, France, on the other hand, denounced the US president's threats by drawing a parallel between Russia and Ukraine.

European Union calls emergency meeting after Trump threatens tariffs over Greenland

EU countries should weigh whether to set up a combined military force that could eventually replace US troops in Europe, the bloc's defence chief said Sunday (Jan 11). EU defence commissioner Andrius Kubilius floated creating a "powerful, standing 'European military force' of 100,000 troops" as a possible option to better protect the continent."How will we replace the 100,000-strong American standing military force, which is the backbone military force in Europe?" he asked in a speech in Sweden.&nbsp;The suggestion comes as US President Donald Trump has heightened fears among NATO allies over Washington's reliability by insisting he wants to take over Greenland.&nbsp;Worries over Trump's commitment to Europe have already spurred countries to step up efforts to bolster their militaries in the face of the threat posed by Russia.&nbsp;Ideas about establishing a central European army have floated around for years but have largely failed to gain traction as nations are wary of relinquishing control over their militaries.&nbsp;Also Read: <a href="https://www.wionews.com/world/us-israel-inciting-riots-iran-president-addresses-nation-amid-ongoing-protests-trump-israel-iranian-protests-aytollah-khamenai-1768135032737">‘US, Israel inciting riots’: Iranian President Pezeshkian addresses nation amid ongoing protests</a>&nbsp;The US has pushed its European allies to increasingly take over responsibility for their own security, and raised the prospect it could shift forces from Europe to focus on China."In such times, we should not run away from the most pressing questions on our institutional defence readiness," said Kubilius, a former Lithuanian prime minister.&nbsp;In his speech, Kubilius also advocated for the creation of a "European Security Council" of key powers -- including potentially Britain -- that could help the continent take decisions over its own defence quicker.&nbsp;"The European Security Council could be composed of key permanent members, along with several rotational members," he said.&nbsp;"In total, around 10-12 members, with the task to discuss the most important issues in defence."&nbsp;He said the first focus of such a body should be trying to change the dynamics in the war in Ukraine to ensure that Kyiv does not end up losing.&nbsp;"We need to have a clear answer - how is the EU going to change that scenario?," he said."This is the reason why we need to have a European Security Council now!"&nbsp;(Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.)

The suggestion comes as US President Donald Trump has heightened fears among NATO allies over Washington's reliability by insisting he wants to take over Greenland.

EU countries should weigh whether to set up a combined military force that could eventually replace US troops in Europe, the bloc's defence chief said Sunday (Jan 11). EU defence commissioner Andrius Kubilius floated creating a "powerful, standing 'European military force' of 100,000 troops" as a possible option to better protect the continent. "How will we replace the 100,000-strong American standing military force, which is the backbone military force in Europe?" he asked in a speech in Sweden. The suggestion comes as US President Donald Trump has heightened fears among NATO allies over Washington's reliability by insisting he wants to take over Greenland. Worries over Trump's commitment to Europe have already spurred countries to step up efforts to bolster their militaries in the face of the threat posed by Russia. Ideas about establishing a central European army have floated around for years but have largely failed to gain traction as nations are wary of relinquishing control over their militaries. Also Read: ‘US, Israel inciting riots’: Iranian President Pezeshkian addresses nation amid ongoing protests The US has pushed its European allies to increasingly take over responsibility for their own security, and raised the prospect it could shift forces from Europe to focus on China. "In such times, we should not run away from the most pressing questions on our institutional defence readiness," said Kubilius, a former Lithuanian prime minister. In his speech, Kubilius also advocated for the creation of a "European Security Council" of key powers -- including potentially Britain -- that could help the continent take decisions over its own defence quicker. "The European Security Council could be composed of key permanent members, along with several rotational members," he said. "In total, around 10-12 members, with the task to discuss the most important issues in defence." He said the first focus of such a body should be trying to change the dynamics in the war in Ukraine to ensure that Kyiv does not end up losing. "We need to have a clear answer - how is the EU going to change that scenario?," he said. "This is the reason why we need to have a European Security Council now!" (Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.)

The suggestion comes as US President Donald Trump has heightened fears among NATO allies over Washington's reliability by insisting he wants to take over Greenland.

EU should consider forming combined military force to replace US troops: defence chief

Following the reports of a massive data breach, the European Space Agency (ESA), in its initial statements, said that the alleged data breach impacted a very limited number of science servers, which are located outside of ESA's corporate network. The agency on Monday (Dec 30) stated that the data breach only impacted unclassified collaborative engineering activities. "ESA is aware of a recent cybersecurity issue involving servers located outside the ESA corporate network. We have initiated a forensic security analysis—currently in progress—and implemented measures to secure any potentially affected devices," the statement said.&nbsp;"Our analysis so far indicates that only a very small number of external servers may have been impacted. These servers support unclassified collaborative engineering activities within the scientific community," it added.

<blockquote class="twitter-tweet">ESA is aware of a recent cybersecurity issue involving servers located outside the ESA corporate network. We have initiated a forensic security analysis—currently in progress—and implemented measures to secure any potentially affected devices. Our analysis so far indicates that…&mdash; European Space Agency (@esa) <a href="https://twitter.com/esa/status/2005938460448715055?ref_src=twsrc%5Etfw">December 30, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Also Read: <a href="https://www.wionews.com/world/turkey-arrests-357-is-suspects-in-nationwide-operations-amid-new-year-security-fears-1767101663138">Turkey arrests 357 IS suspects in nationwide operations amid New Year security fears</a>&nbsp;These statements follow December 26 reports that emerged on X claiming that the ESA had suffered a massive data breach, when a hacker put more than 200 gigabytes of data for sale, he used the alias "888" for the offering. &nbsp;The hacker in his sales pitch claimed that the leaked information includes source code for proprietary software, sensitive project documentation, API tokens, and hardcoded credentials.&nbsp;On December 29, the European agency confirmed the claim of a data breach and said that a forensic investigation into the matter is underway. Later, on December 30, the ESA tried to characterise the incident as a minor data breach with a limited impact.&nbsp;Also Read: <a href="https://www.wionews.com/trending/robots-are-dumb-humanoid-kicks-its-operator-in-the-groin-then-acts-out-his-pain-viral-video-1767074114259">Robots are dumb: Humanoid kicks its operator in the groin, then acts out his pain | Viral video</a>&nbsp;The agency underscored that all the stakeholders have been informed and vowed to provide additional information in the future. "All relevant stakeholders have been informed, and we will provide further updates as soon as additional information becomes available".&nbsp;

The ESA downplayed the impact of the data breach on December 26, when a hacker claimed to possess sensitive information and put 200 gigabytes of data up for sale.

Following the reports of a massive data breach, the European Space Agency (ESA), in its initial statements, said that the alleged data breach impacted a very limited number of science servers, which are located outside of ESA's corporate network. The agency on Monday (Dec 30) stated that the data breach only impacted unclassified collaborative engineering activities. "ESA is aware of a recent cybersecurity issue involving servers located outside the ESA corporate network. We have initiated a forensic security analysis—currently in progress—and implemented measures to secure any potentially affected devices," the statement said. "Our analysis so far indicates that only a very small number of external servers may have been impacted. These servers support unclassified collaborative engineering activities within the scientific community," it added.

The ESA downplayed the impact of the data breach on December 26, when a hacker claimed to possess sensitive information and put 200 gigabytes of data up for sale.

Amid reports of massive data breach, European Space Agency says impact limited to servers with unclassified documents

The European Union is delaying a massive free-trade deal with South American countries after fiery protests by farmers and last-minute opposition by France and Italy threatened to derail the pact, seen by its backers as an important geopolitical move for both continents.


EU Delays Mercosur Trade Deal After Farmer Protests in France, Italy 

European Union President Ursula von der Leyen said EU leaders will not leave the summit without a financial solution for Ukraine. European Union leaders are planning to use Russian frozen assets to keep the Ukrainian war effort afloat, but there is a lack of consensus among the European leaders. As the Russian invasion of Ukraine has progressed, Europe has started to perceive Russia as a threat to its own security and wants no stone unturned to keep it financed and fighting until it finds the upper hand in the peace negotiations.&nbsp;“Now we have a simple choice — either money today or blood tomorrow. And I am not talking about Ukraine only, I am talking about Europe,” said Polish Prime Minister Donald Tusk. This comes just after US President Donald Trump called Europe “decaying” last week, and according to reports United States is planning to patronise Eurosceptic forces to direct Europe away from its liberal ideas.&nbsp;Russia's central bank has earlier said that the EU's plan to use its assets is illegal and will use any means at its disposal to protect its interests. It filed a lawsuit in Moscow this week seeking $230 billion in damages from clearing house Euroclear.Ukrainian President Volodymyr Zelenskyy said on Thursday that any failure to reach a decision will be a big problem for Kyiv. Ukraine is expected to run out of funds to continue its defence against Russian aggression by the second quarter of the next year."On Friday and Saturday, our team will be in the United States of America; they are already on their way ... and the Americans are waiting for them," said Zelenskyy to the reporters.

EU leaders will not leave summit without a financial plan for Ukraine as divisions grow over using frozen Russian assets to fund Kyiv’s war effort.

European Union President Ursula von der Leyen said EU leaders will not leave the summit without a financial solution for Ukraine. European Union leaders are planning to use Russian frozen assets to keep the Ukrainian war effort afloat, but there is a lack of consensus among the European leaders. As the Russian invasion of Ukraine has progressed, Europe has started to perceive Russia as a threat to its own security and wants no stone unturned to keep it financed and fighting until it finds the upper hand in the peace negotiations. “Now we have a simple choice — either money today or blood tomorrow. And I am not talking about Ukraine only, I am talking about Europe,” said Polish Prime Minister Donald Tusk. This comes just after US President Donald Trump called Europe “decaying” last week, and according to reports United States is planning to patronise Eurosceptic forces to direct Europe away from its liberal ideas. Russia's central bank has earlier said that the EU's plan to use its assets is illegal and will use any means at its disposal to protect its interests. It filed a lawsuit in Moscow this week seeking $230 billion in damages from clearing house Euroclear. Ukrainian President Volodymyr Zelenskyy said on Thursday that any failure to reach a decision will be a big problem for Kyiv. Ukraine is expected to run out of funds to continue its defence against Russian aggression by the second quarter of the next year. "On Friday and Saturday, our team will be in the United States of America; they are already on their way ... and the Americans are waiting for them," said Zelenskyy to the reporters.

EU leaders will not leave summit without a financial plan for Ukraine as divisions grow over using frozen Russian assets to fund Kyiv’s war effort.

EU leaders 'will not leave' crunch summit without making a decision on Ukraine loan

European leaders are meeting in Brussels for this week’s European Council summit with a high-stakes agenda, one of which is a decision on the use of Russian frozen assets worth €210 billion to fund Ukraine. But reports from Politico suggest that the Trump administration is actively lobbying and even asserting pressure on the European leaders to refrain from using the fund.&nbsp;The European Commission wants to use the Russian assets held in Belgium as security for a Ukraine loan, to help in defence and reconstruction. &nbsp;But Washington is asking to delay it as these assets could be used as leverage for a future peace deal.&nbsp;"They want to weaken us,” said a senior EU official familiar with transatlantic relations and preparations for the summit. This has indeed widened the rift in the European Union. Several leaders, such as Hungary's Viktor Orbán, the Czech Republic’s Andrej Babiš and Giorgia Meloni of Italy are asking European Union to seek other alternatives.European officials have described the US pressure as “enormous and unprecedented”. They have warned that the failure of the plan would be a reputational damage for the European Union and hint at the National Strategic Policy of the US which aims to polarise EU and support the Eurosceptic forces within Europe.&nbsp;“A shattered Ukraine would be in a weaker position at the negotiating table, undercutting its ability to secure a lasting peace and rebuild after four years of all-out war,” read the report.However the Trump administration has dismissed the report of interference. “A shattered Ukraine would be in a weaker position at the negotiating table, undercutting its ability to secure a lasting peace and rebuild after four years of all-out war,” said White House Deputy Press Secretary Ana Kelly. She asserted that the White House has one goal to achieve lasting peace. “Both Ukrainians and Russians have made their positions on frozen assets clear, and our sole aim is to facilitate an exchange of views that could eventually lead to an agreement”, said Deputy Press Secretary Ana Kelly.&nbsp;

The Trump administration is pressuring the EU to abandon plans to use frozen Russian assets to fund Ukraine. Washington warns that these could be used for a future peace deal.

European leaders are meeting in Brussels for this week’s European Council summit with a high-stakes agenda, one of which is a decision on the use of Russian frozen assets worth €210 billion to fund Ukraine. But reports from Politico suggest that the Trump administration is actively lobbying and even asserting pressure on the European leaders to refrain from using the fund. The European Commission wants to use the Russian assets held in Belgium as security for a Ukraine loan, to help in defence and reconstruction. But Washington is asking to delay it as these assets could be used as leverage for a future peace deal. "They want to weaken us,” said a senior EU official familiar with transatlantic relations and preparations for the summit. This has indeed widened the rift in the European Union. Several leaders, such as Hungary's Viktor Orbán, the Czech Republic’s Andrej Babiš and Giorgia Meloni of Italy are asking European Union to seek other alternatives. European officials have described the US pressure as “enormous and unprecedented”. They have warned that the failure of the plan would be a reputational damage for the European Union and hint at the National Strategic Policy of the US which aims to polarise EU and support the Eurosceptic forces within Europe. “A shattered Ukraine would be in a weaker position at the negotiating table, undercutting its ability to secure a lasting peace and rebuild after four years of all-out war,” read the report. However the Trump administration has dismissed the report of interference. “A shattered Ukraine would be in a weaker position at the negotiating table, undercutting its ability to secure a lasting peace and rebuild after four years of all-out war,” said White House Deputy Press Secretary Ana Kelly. She asserted that the White House has one goal to achieve lasting peace. “Both Ukrainians and Russians have made their positions on frozen assets clear, and our sole aim is to facilitate an exchange of views that could eventually lead to an agreement”, said Deputy Press Secretary Ana Kelly.

The Trump administration is pressuring the EU to abandon plans to use frozen Russian assets to fund Ukraine. Washington argues that these could be used for a future peace deal

Trump pressures EU to drop Ukraine's 'reparations loan' plan using Russian asset

Hungarian Prime Minister Viktor Orbán said he had asked Russian President Vladimir Putin about his possible reaction to the European Union using the frozen Russian assets. Orbán, on his way to Brussels, said that he sent a letter to the Russian President seeking his response. He asked whether Putin would take into account the position of the individual member states. The matter of frozen Russian assets as a "reparations loan" to Ukraine will be discussed in the upcoming EU summit.&nbsp;

<blockquote class="twitter-tweet" data-media-max-width="560">Hungary has respected loyal cooperation on frozen Russian assets. The EU responded by stripping Hungary of its rights. This abandons the principle of loyal cooperation in the sanctions debate and sets a dangerous precedent. Unacceptable! <a href="https://t.co/6NJWMnIqMK">pic.twitter.com/6NJWMnIqMK</a>&mdash; Orbán Viktor (@PM_ViktorOrban) <a href="https://twitter.com/PM_ViktorOrban/status/2001049973178155351?ref_src=twsrc%5Etfw">December 16, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

&nbsp;Orbán has supposedly received a response which indicated that Russia will not take the "reparations loan" of Russian assets to Ukraine easily, and there would be a “strong reaction” from Russia. It would take into account the positions of individual member states. Orbán has also reiterated that even if the EU nations vote for using the frozen Russian funds, Hungary will not support the decision. He also cribbed about the European Union stripping “Hungary of its rights” and violating the principle of &nbsp;"loyal cooperation".Viktor Orbán's Hungary and the European Union have been at a crossroads since 2018, with discussion about suspending Hungary’s EU membership rights due to serious and continuous violations of European values. In November 2025, the European Union voted in favour of sanctions on Hungary for descending into an electoral autocracy, despite the parliament being dominated by the right and the Patriots for Europe, funded by Viktor Orbán himself. Orbán did not take the decision well, and he does "not consider the principles of loyal cooperation to be binding" in the sanctions debate.&nbsp;&nbsp;&nbsp;&nbsp;

Hungarian PM Viktor Orbán says he contacted Vladimir Putin to ask how Russia might respond if the EU uses frozen Russian assets for Ukraine reparations. Hungary opposes the move, warning it could escalate tensions, as EU leaders prepare to debate the asset decision. 

Hungarian Prime Minister Viktor Orbán said he had asked Russian President Vladimir Putin about his possible reaction to the European Union using the frozen Russian assets. Orbán, on his way to Brussels, said that he sent a letter to the Russian President seeking his response. He asked whether Putin would take into account the position of the individual member states. The matter of frozen Russian assets as a "reparations loan" to Ukraine will be discussed in the upcoming EU summit.

Hungarian PM Viktor Orbán says he contacted Vladimir Putin to ask how Russia might respond if the EU uses frozen Russian assets for Ukraine reparations. Hungary opposes the move, warning it could escalate tensions, as EU leaders prepare to debate the asset decision.&nbsp;

Orbán asked Putin about punishing Hungary over EU using Russian frozen asset

Tech billionaire Elon Musk on Saturday (Dec 06) said that the European Union should be abolished and nations should become sovereign to ensure better representation of the people. The Tesla Ceo's remarks came amid escalating tensions with the bloc after Musk's social media platform X, slapped with a 120 million euro ($140 million) fine for breaching digital transparency laws.&nbsp;"The EU should be abolished, and sovereignty returned to individual countries, so that governments can better represent their people," Musk wrote on X.&nbsp;In a series of posts on X, he described the fine as "crazy," "insane," and straight up "bullshit." The SpaceX CEO accused the EU regulators of targeting him personally and called for actions against the bloc and individuals behind the actions.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/rs-7500-up-to-500-km-centre-caps-ticket-prices-as-indigo-crisis-deepens-airlines-airfares-airindia-1765022186442">Rs 7500 up to 500 KM: Centre caps ticket prices as IndiGo crisis deepens</a><h2>Why X got fined</h2>Musk's social media platform X becomes the first entity to get fined under the bloc's Digital Services Act (DSA), legislation aimed at regulating social media companies. European regulators found X guilty of three violations after a two-year probe.&nbsp;Deceptive Blue Checkmarks: €45 million fine&nbsp;The platform’s paid blue checkmark system, which the EU said has “deceptive design,” arguing that it blurs the line between genuine voices and scammers and exposes users to fraud. The Commission said the badge “does not meaningfully verify who is behind the account,” making authenticity harder to judge.&nbsp;Flawed Ad Repository:€35 million fine&nbsp;Under the DSA, platforms must maintain a searchable ad database showing buyers, targeting criteria, and spending. Regulators found X’s repository hampered by “built-in limitations, delays, and access obstacles,” restricting researchers and watchdogs from tracking hidden influence operations or scams.&nbsp;Researcher data barriers: €40 million fine&nbsp;X allegedly created “unnecessary barriers” that blocked academics and experts from accessing public data essential for studying systemic risks such as hate speech and election interference. The EU said this opacity undermines efforts to protect democratic processes.&nbsp;Also Read: <a href="https://www.wionews.com/world/drug-boat-strike-controversy-trump-bradley-hegseth-1765023842778">Admiral contradicts Donald Trump's claims, alleged drug boat was not heading to US</a><h2>Washington calls 'attack on America'</h2>US Vice President JD Vance lashed out at the 27-country bloc even before the announcement, accusing it of unfair targeting of American companies through censorship.&nbsp;The Secretary of State Marco Rubo called the penalty an attack on all US-based tech platforms and the American people by foreign governments. "The European Commission's $140 million fine isn't just an attack on X, it's an attack on all American tech platforms and the American people by foreign governments," Rubio posted on X, adding, "The days of censoring Americans online are over."&nbsp;

US Vice President JD Vance also lashed out at the 27-country bloc even before the announcement, accusing it of unfair targeting of American companies through censorship.

Tech billionaire Elon Musk on Saturday (Dec 06) said that the European Union should be abolished and nations should become sovereign to ensure better representation of the people. The Tesla Ceo's remarks came amid escalating tensions with the bloc after Musk's social media platform X, slapped with a 120 million euro ($140 million) fine for breaching digital transparency laws. "The EU should be abolished, and sovereignty returned to individual countries, so that governments can better represent their people," Musk wrote on X. In a series of posts on X, he described the fine as "crazy," "insane," and straight up "bullshit." The SpaceX CEO accused the EU regulators of targeting him personally and called for actions against the bloc and individuals behind the actions. Also Read: Rs 7500 up to 500 KM: Centre caps ticket prices as IndiGo crisis deepens Why X got fined Musk's social media platform X becomes the first entity to get fined under the bloc's Digital Services Act (DSA), legislation aimed at regulating social media companies. European regulators found X guilty of three violations after a two-year probe. Deceptive Blue Checkmarks: €45 million fine The platform’s paid blue checkmark system, which the EU said has “deceptive design,” arguing that it blurs the line between genuine voices and scammers and exposes users to fraud. The Commission said the badge “does not meaningfully verify who is behind the account,” making authenticity harder to judge. Flawed Ad Repository:€35 million fine Under the DSA, platforms must maintain a searchable ad database showing buyers, targeting criteria, and spending. Regulators found X’s repository hampered by “built-in limitations, delays, and access obstacles,” restricting researchers and watchdogs from tracking hidden influence operations or scams. Researcher data barriers: €40 million fine X allegedly created “unnecessary barriers” that blocked academics and experts from accessing public data essential for studying systemic risks such as hate speech and election interference. The EU said this opacity undermines efforts to protect democratic processes. Also Read: Admiral contradicts Donald Trump's claims, alleged drug boat was not heading to US Washington calls 'attack on America' US Vice President JD Vance lashed out at the 27-country bloc even before the announcement, accusing it of unfair targeting of American companies through censorship. The Secretary of State Marco Rubo called the penalty an attack on all US-based tech platforms and the American people by foreign governments. "The European Commission's $140 million fine isn't just an attack on X, it's an attack on all American tech platforms and the American people by foreign governments," Rubio posted on X, adding, "The days of censoring Americans online are over."

US Vice President JD Vance lashed out at the 27-country bloc even before the announcement, accusing it of unfair targeting of American companies through censorship.

'European Union should be abolished': Elon Musk escalates feud with Brussels after X slapped $140 Mn fine

Huawei is banned in the US, and the European Union is pushing for a ban on its mobile networks. Henna Virkkunen, the Vice President for the European Commission of Technological Sovereignty, Security, and Democracy, has decided that the member nations of the European Union should phase out high-risk vendors, such as Huawei and ZTE. Already banned in the United States, a Chinese state-funded company faces extreme hostility from the West. In 2019, the US blacklisted Huawei on the pretence of national security, citing that Huawei's telecommunication device contains a 'backdoor' which enables surveillance by the Chinese Government.&nbsp;<h2>Why is the West hostile towards Huawei?</h2>On the surface, the US claims that Huawei is a state-funded company, and China's National Intelligence Law 2017 binds state companies with the government in intelligence operations. But since the revelations by Edward Snowden, a National Security Intelligence contractor and whistleblower, the level of spying by the US government, both within the country and overseas, is appalling. From data access on major online platforms to snooping on phones of at least 35 world leaders from countries like Brazil, France, Mexico, the UK, China and Germany. Notably, the former Chancellor of Germany, Angela Merkel, said that ‘spying among friends’ was unacceptable. Snowden was charged with violation of the Espionage Act of 1917. He is now living in exile in Russia.&nbsp;&nbsp;Contrastingly, when faced with a spying allegation in 2010, Huawei opened a review centre in the UK called Huawei Cyber Security Evaluation Centre, which allowed &nbsp;UK government security officials access to Huawei's technology for review. But it changed nothing; in reality, West doesn't want the dominance of a Chinese company, which is effectively run by its employees. &nbsp;151,796 current and former workers jointly run the company on an employee share ownership plan. Huawei shares are not publicly traded, and it makes individual payouts to employees annually. So no one can buy out the company or control it, and it's more innovative and successful than Western brands. &nbsp;For 2024, Huawei paid $10 billion in dividends to its employees. This is a stark contrast to companies like Apple and Alphabet, which have aggressive share buyback policies to keep the share prices higher. In 2024, Apple spent $110 billion and Alphabet spent $70 billion in share repurchases. Huawei CEO Ren Zhengfei considers this share buyback a wasteful model. In 2024, Huawei invested nearly 20.8 per cent, approximately $25 billion of its total revenue in research and development. Despite the US sanctions, Huawei is now leading the market in telecommunications and 5G technologies. It holds over 150,000 active patents and is the largest smartphone company in 2024. In reality, Huawei's success threatens the corporate ownership model sold by the US; so the agenda of ostracising Huawei, which shows the free market is free until Western companies stay on top.&nbsp;&nbsp;&nbsp;

Huawei faces bans in the US and Europe over alleged security risks. But is it really about national security or Western fear of losing tech dominance to China’s employee-owned giant?

Huawei is banned in the US, and the European Union is pushing for a ban on its mobile networks. Henna Virkkunen, the Vice President for the European Commission of Technological Sovereignty, Security, and Democracy, has decided that the member nations of the European Union should phase out high-risk vendors, such as Huawei and ZTE. Already banned in the United States, a Chinese state-funded company faces extreme hostility from the West. In 2019, the US blacklisted Huawei on the pretence of national security, citing that Huawei's telecommunication device contains a 'backdoor' which enables surveillance by the Chinese Government. Why is the West hostile towards Huawei? On the surface, the US claims that Huawei is a state-funded company, and China's National Intelligence Law 2017 binds state companies with the government in intelligence operations. But since the revelations by Edward Snowden, a National Security Intelligence contractor and whistleblower, the level of spying by the US government, both within the country and overseas, is appalling. From data access on major online platforms to snooping on phones of at least 35 world leaders from countries like Brazil, France, Mexico, the UK, China and Germany. Notably, the former Chancellor of Germany, Angela Merkel, said that ‘spying among friends’ was unacceptable. Snowden was charged with violation of the Espionage Act of 1917. He is now living in exile in Russia. Contrastingly, when faced with a spying allegation in 2010, Huawei opened a review centre in the UK called Huawei Cyber Security Evaluation Centre, which allowed UK government security officials access to Huawei's technology for review. But it changed nothing; in reality, West doesn't want the dominance of a Chinese company, which is effectively run by its employees. 151,796 current and former workers jointly run the company on an employee share ownership plan. Huawei shares are not publicly traded, and it makes individual payouts to employees annually. So no one can buy out the company or control it, and it's more innovative and successful than Western brands. For 2024, Huawei paid $10 billion in dividends to its employees. This is a stark contrast to companies like Apple and Alphabet, which have aggressive share buyback policies to keep the share prices higher. In 2024, Apple spent $110 billion and Alphabet spent $70 billion in share repurchases. Huawei CEO Ren Zhengfei considers this share buyback a wasteful model. In 2024, Huawei invested nearly 20.8 per cent, approximately $25 billion of its total revenue in research and development. Despite the US sanctions, Huawei is now leading the market in telecommunications and 5G technologies. It holds over 150,000 active patents and is the largest smartphone company in 2024. In reality, Huawei's success threatens the corporate ownership model sold by the US; so the agenda of ostracising Huawei, which shows the free market is free until Western companies stay on top.

Huawei faces bans in the US and Europe over alleged security risks. But is it really about national security or Western fear of losing tech dominance to China’s employee-owned giant?

National security or Western tech monopoly - Real reason behind West's hostility toward Huawei

European Union member states on Monday reached an agreement to completely phase out their remaining gas imports from Russia by the end of 2027, marking a significant move to end the bloc's reliance on Moscow amid the ongoing war in Ukraine. The proposal was approved by the European Commission in Luxembourg to gradually phase out both pipeline gas and liquefied natural gas (LNG) imports from Russia, pending approval from the European Parliament.&nbsp;The Energy Minister of Denmark, Lars Aagaard, who holds the European Union's rotating presidency, hailed the move as a "crucial" step to make Europe energy self-reliant. The proposal is a part of a wider EU strategy to avoid the bloc's dependency on Russian energy supplies. "Although we have worked hard and pushed to get Russian gas and oil out of Europe in recent years, we are not there yet," Aagaard said, news agency AFP reported.&nbsp;The commission is also advocating for liquefied natural gas (LNG) imports from Russia to be halted a year earlier, by January 2027, under a new sanctions package designed to weaken the war finances of Russia against Ukraine. However, such sanctions require unanimous consent from all 27 EU member states, a consensus that has often proven difficult to achieve.<h3>What do the new contracts say?</h3>Monday’s trade restrictions, by contrast, only needed the approval of a weighted majority, at least 15 member states. According to diplomats, all nations except Hungary and Slovakia backed the decision as both nations maintain closer ties with the Kremlin and continue to receive Russian gas through pipelines.&nbsp;"The real impact of this regulation is that our safe supply of energy in Hungary is going to be killed," said Budapest's top diplomat, Peter Szijjarto. His government stated that the landlocked country requires importing gas from Russia due to geographical constraints.&nbsp;Based on the approved proposal on Monday, which is most likely to also win the support of the European Parliament, Russian gas imports will be banned as of January 1, 2026, under new contracts. However, the current agreements will be given a transition period, allowing gas deliveries under short-term contracts until 17 June next year and under long-term contracts until 1 January 2028.&nbsp;While pipeline gas imports from Russia have significantly declined since the start of the Ukraine invasion, several European nations have boosted their intake of Russian liquefied natural gas (LNG) shipped by sea. As of 2025, Russian gas is still estimated to make up about 13 per cent of the EU’s total imports, valued at more than 15 billion euros annually, according to EU officials in Brussels.

The Energy Minister of Denmark, Lars Aagaard, who holds the European Union's rotating presidency, hailed the move as a "crucial" step to make Europe energy self-reliant. The proposal is a part of a wider EU strategy to avoid the bloc's dependency on Russian energy supplies.

European Union member states on Monday reached an agreement to completely phase out their remaining gas imports from Russia by the end of 2027, marking a significant move to end the bloc's reliance on Moscow amid the ongoing war in Ukraine. The proposal was approved by the European Commission in Luxembourg to gradually phase out both pipeline gas and liquefied natural gas (LNG) imports from Russia, pending approval from the European Parliament. The Energy Minister of Denmark, Lars Aagaard, who holds the European Union's rotating presidency, hailed the move as a "crucial" step to make Europe energy self-reliant. The proposal is a part of a wider EU strategy to avoid the bloc's dependency on Russian energy supplies. "Although we have worked hard and pushed to get Russian gas and oil out of Europe in recent years, we are not there yet," Aagaard said, news agency AFP reported. The commission is also advocating for liquefied natural gas (LNG) imports from Russia to be halted a year earlier, by January 2027, under a new sanctions package designed to weaken the war finances of Russia against Ukraine. However, such sanctions require unanimous consent from all 27 EU member states, a consensus that has often proven difficult to achieve. What do the new contracts say? Monday’s trade restrictions, by contrast, only needed the approval of a weighted majority, at least 15 member states. According to diplomats, all nations except Hungary and Slovakia backed the decision as both nations maintain closer ties with the Kremlin and continue to receive Russian gas through pipelines. "The real impact of this regulation is that our safe supply of energy in Hungary is going to be killed," said Budapest's top diplomat, Peter Szijjarto. His government stated that the landlocked country requires importing gas from Russia due to geographical constraints. Based on the approved proposal on Monday, which is most likely to also win the support of the European Parliament, Russian gas imports will be banned as of January 1, 2026, under new contracts. However, the current agreements will be given a transition period, allowing gas deliveries under short-term contracts until 17 June next year and under long-term contracts until 1 January 2028. While pipeline gas imports from Russia have significantly declined since the start of the Ukraine invasion, several European nations have boosted their intake of Russian liquefied natural gas (LNG) shipped by sea. As of 2025, Russian gas is still estimated to make up about 13 per cent of the EU’s total imports, valued at more than 15 billion euros annually, according to EU officials in Brussels.

The Energy Minister of Denmark, Lars Aagaard, who holds the European Union's rotating presidency, hailed the move as a "crucial" step to make Europe energy self-reliant. The proposal is a part of a wider EU strategy to avoid the bloc's dependency on Russian energy supplies.

No more Russian gas! EU to end remaining gas imports from Moscow by 2027 — Here's why?

The European Union Has Announced Major New Projects To Combat The Growing Threat Of Russian Drones. With Russia Increasing Its Use Of Unmanned Aerial Vehicles In Conflicts, Concerns Are Rising About Potential Attacks Beyond Europe, Including The United States. What Are The EU’s Strategies To Counter This Threat, And Could The U.S. Be A Future Target? Watch To Learn More.

EU Announces Flagship Projects To Counter Russian Drones: Is U.S. a Probable Target? 

The European Union has launched its new Entry-Exit System (EES) aimed at strengthening border security and tracking non-EU travelers more efficiently. Croatia became the first EU country to deploy the system, which records biometric data and travel details at border checkpoints.

EU Rolls Out New Entry-Exit System on Borders, Croatia First to Deploy 'Entry-Exit System'

After the Russian drone incursion in Polish airspace, NATO chief Mark Rutte on Wednesday (Sep 10) slammed Moscow’s “reckless behaviour”. It also hailed the alliance’s “very successful reaction” to counter the violation. The European Union and NATO members, including the US, UK, Germany, and France, have also condemned the overnight drone incursion by Russia. Meanwhile, Russia has said that it did not target Polish sites.“A full assessment is ongoing. But of course, whether it was intentional or not, it is absolutely reckless, it is absolutely dangerous,” alliance chief Mark Rutte said following the emergency meeting of the NATO members on Wednesday.He said that NATO’s “air defences were activated and successfully assured the defence of NATO territory, as they are designed to do.”He further warned Putin to end the war in Ukraine and stop killing civilians and infrastructure. “To Putin, I mean, my message is clear: stop the war in Ukraine, stop the escalating war, which he is now basically mounting on innocent civilians and civilian infrastructure,” he said. “Stop violating allied airspace, and know that we stand ready, that we are vigilant, and that we will defend every inch of NATO territory.”EU chief Ursula von der Leyen condemned the Russian drone incrusion, asserting its independence in a “hostile” world.&nbsp;“Battle lines for a new world order based on power are being drawn right now,” she said. “So, yes, Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe. This must be Europe's independence moment.”“Just today, we have seen a reckless and unprecedented violation of Poland and Europe's airspace by more than 10 Russian Shahed drones,” von der Leyen said. “Europe will defend every inch of its territory.”<h2>World leaders react</h2>Condemning the Russian violation of Polish airspace, Germany on Wednesday said that Moscow was “testing” Ukraine’s allies. Calling it a “very serious” incident, German spokesman Sebastian Hille said that “there is absolutely no reason to believe that this was a course correction error or anything of the sort” as the drones “did not have to fly this route to reach Ukraine”. Germany’s foreign minister said that “we need to analyse where we are and what Russia's intentions were,” suggestive of confusion or lack of consensus among NATO members on how to deal with Russia.The US ambassador to NATO said that Washington stands by its allies following the Russian drone incursion in Poland. “We stand by our NATO Allies in the face of these airspace violations and will defend every inch of NATO territory,” the US envoy to the alliance, Matthew Whitaker, wrote on X.UK Prime Minister Keir Starmer called the incident “extremely reckless”, adding that the UK stands firm in its support for Ukraine. British defence minister John Healey said that the incursion “took this aggression to a new level of hostility”, as he held talks in London with defence officials from Poland, France, Italy and Germany.French President Emmanuel Macron said that the Russian violation was “simply unacceptable” and urged Moscow to stop its “reckless behaviour.”“The incursion of Russian drones into Polish airspace during a Russian attack on Ukraine is simply unacceptable,” Macron said on X. “I call on Russia to put an end to this reckless behaviour.”

The European Union and NATO members, including the US, UK, Germany, and France, have also condemned the overnight drone incursion by Russia. Meanwhile, Russia has said that it did not target Polish sites.

After the Russian drone incursion in Polish airspace, NATO chief Mark Rutte on Wednesday (Sep 10) slammed Moscow’s “reckless behaviour”. It also hailed the alliance’s “very successful reaction” to counter the violation. The European Union and NATO members, including the US, UK, Germany, and France, have also condemned the overnight drone incursion by Russia. Meanwhile, Russia has said that it did not target Polish sites. “A full assessment is ongoing. But of course, whether it was intentional or not, it is absolutely reckless, it is absolutely dangerous,” alliance chief Mark Rutte said following the emergency meeting of the NATO members on Wednesday. He said that NATO’s “air defences were activated and successfully assured the defence of NATO territory, as they are designed to do.” He further warned Putin to end the war in Ukraine and stop killing civilians and infrastructure. “To Putin, I mean, my message is clear: stop the war in Ukraine, stop the escalating war, which he is now basically mounting on innocent civilians and civilian infrastructure,” he said. “Stop violating allied airspace, and know that we stand ready, that we are vigilant, and that we will defend every inch of NATO territory.” EU chief Ursula von der Leyen condemned the Russian drone incrusion, asserting its independence in a “hostile” world. “Battle lines for a new world order based on power are being drawn right now,” she said. “So, yes, Europe must fight. For its place in a world in which many major powers are either ambivalent or openly hostile to Europe. This must be Europe's independence moment.” “Just today, we have seen a reckless and unprecedented violation of Poland and Europe's airspace by more than 10 Russian Shahed drones,” von der Leyen said. “Europe will defend every inch of its territory.” World leaders react Condemning the Russian violation of Polish airspace, Germany on Wednesday said that Moscow was “testing” Ukraine’s allies. Calling it a “very serious” incident, German spokesman Sebastian Hille said that “there is absolutely no reason to believe that this was a course correction error or anything of the sort” as the drones “did not have to fly this route to reach Ukraine”. Germany’s foreign minister said that “we need to analyse where we are and what Russia's intentions were,” suggestive of confusion or lack of consensus among NATO members on how to deal with Russia. The US ambassador to NATO said that Washington stands by its allies following the Russian drone incursion in Poland. “We stand by our NATO Allies in the face of these airspace violations and will defend every inch of NATO territory,” the US envoy to the alliance, Matthew Whitaker, wrote on X. UK Prime Minister Keir Starmer called the incident “extremely reckless”, adding that the UK stands firm in its support for Ukraine. British defence minister John Healey said that the incursion “took this aggression to a new level of hostility”, as he held talks in London with defence officials from Poland, France, Italy and Germany. French President Emmanuel Macron said that the Russian violation was “simply unacceptable” and urged Moscow to stop its “reckless behaviour.” “The incursion of Russian drones into Polish airspace during a Russian attack on Ukraine is simply unacceptable,” Macron said on X. “I call on Russia to put an end to this reckless behaviour.”

The European Union and NATO members, including the US, UK, Germany, and France, have also condemned the overnight drone incursion by Russia. Meanwhile, Russia has said that it did not target Polish sites.

‘Europe will defend every inch of its territory’: NATO chief, world leaders slam Russia’s ‘reckless’ drone incursion in Poland

US President Donald Trump is asking the European Union to impose tariffs of up to 100 per cent on imports from India and China, in a joint push to raise the economic cost for Russia over its war in Ukraine, according to the Financial Times. The US president made the demand during a meeting in Washington on Tuesday (September 09).<h2>Trump tells Europe to 'step up'</h2>“We’re ready to go, ready to go right now, but we’re only going to do this if our European partners step up with us,” one US official told FT. Another said Washington was prepared to “mirror” EU tariffs on India and China, which could mean further hikes on goods from both countries.Also read: <a href="https://www.wionews.com/world/-close-friends-natural-partners-trump-softens-tone-on-india-says-trade-deal-will-be-done-soon-here-s-how-pm-modi-responded-1757470588479">'Close friends, natural partners': Trump softens tone on India, says trade deal will be done ‘soon’ - Here's how PM Modi responded</a>Trump, according to officials, said that “the obvious approach here is, let’s all put on dramatic tariffs and keep the tariffs on until the Chinese agree to stop buying the oil. There really aren’t many other places that oil can go.” He said, "Any of these things will of course be costly, and for the president to do it, we need our EU partners and ideally all of our partners with us. And we’ll share the pain together.” He added that the move would only work if Europeans had “the political will to bring the war to an end.”<h2>India hits back at US tariffs</h2>The push comes just weeks after Washington slapped a punitive 25% tariff on Indian imports over New Delhi’s Russian oil purchases, taking total duties as high as 50%. India has denounced the measures as “unfair, unjustified and unreasonable,” while pointing out that the US and EU continue trading with Russia themselves. In 2024, EU trade with Russia stood at €67.5 billion, with services trade reaching €17.2 billion in 2023, according to European Commission figures.Despite the tariff threats, Trump later softened his tone, posting on Truth Social, he said, “India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks.”<h2>EU divided on next steps</h2>While some European capitals are debating secondary sanctions on China and India for buying Russian oil and gas, many remain cautious given their deep trade links with Beijing and New Delhi. US diplomats have also made clear that Washington does not intend to target India and China without Europe’s full participation.

US President Trump urged the EU to impose 100% tariffs on Indian and Chinese imports, aiming to pressure Russia over Ukraine. He acknowledged that while any of these things will, of course, be costly, EU and US will have to share the pain together.

US President Donald Trump is asking the European Union to impose tariffs of up to 100 per cent on imports from India and China, in a joint push to raise the economic cost for Russia over its war in Ukraine, according to the Financial Times. The US president made the demand during a meeting in Washington on Tuesday (September 09). Trump tells Europe to 'step up' “We’re ready to go, ready to go right now, but we’re only going to do this if our European partners step up with us,” one US official told FT. Another said Washington was prepared to “mirror” EU tariffs on India and China, which could mean further hikes on goods from both countries. Also read: 'Close friends, natural partners': Trump softens tone on India, says trade deal will be done ‘soon’ - Here's how PM Modi responded Trump, according to officials, said that “the obvious approach here is, let’s all put on dramatic tariffs and keep the tariffs on until the Chinese agree to stop buying the oil. There really aren’t many other places that oil can go.” He said, "Any of these things will of course be costly, and for the president to do it, we need our EU partners and ideally all of our partners with us. And we’ll share the pain together.” He added that the move would only work if Europeans had “the political will to bring the war to an end.” India hits back at US tariffs The push comes just weeks after Washington slapped a punitive 25% tariff on Indian imports over New Delhi’s Russian oil purchases, taking total duties as high as 50%. India has denounced the measures as “unfair, unjustified and unreasonable,” while pointing out that the US and EU continue trading with Russia themselves. In 2024, EU trade with Russia stood at €67.5 billion, with services trade reaching €17.2 billion in 2023, according to European Commission figures. Despite the tariff threats, Trump later softened his tone, posting on Truth Social, he said, “India, and the United States of America, are continuing negotiations to address the Trade Barriers between our two Nations. I look forward to speaking with my very good friend, Prime Minister Modi, in the upcoming weeks.” EU divided on next steps While some European capitals are debating secondary sanctions on China and India for buying Russian oil and gas, many remain cautious given their deep trade links with Beijing and New Delhi. US diplomats have also made clear that Washington does not intend to target India and China without Europe’s full participation.

US President Trump urged the EU to impose 100% tariffs on Indian and Chinese imports, aiming to pressure Russia over Ukraine. He acknowledged that while any of these things will, of course, be costly, EU and US will have to share the pain.

'Share the pain together': Trump tells EU to slap 100% tariffs on India, China to choke Russia’s oil lifeline

In a push to deepen ties, India and the European Union are set to significantly elevate their engagement this week, with two high-level ministerial ( EU Commissioner level) visits to New Delhi and the 13th round of negotiations for a landmark Free Trade Agreement (FTA). The flurry of diplomatic activity comes even as both sides aim to conclude the FTA by year’s end, building on momentum from External Affairs Minister S. Jaishankar’s visit to Brussels and visit of European college led by President Ursula von der Leyen to India.This week, European Commissioner for Agriculture and Food Christophe Hansen and Commissioner for Trade and Economic Security Maroš Šefčovič will arrive in New Delhi, coinciding with the 13th round of FTA talks. The negotiations, which have made steady progress, have already provisionally closed 11 chapters, covering areas such as Intellectual properties, customs and trade facilitation, &nbsp;transparency, good regulatory practices, mutual administrative assistance, SMEs, sustainable food system, dispute settlement, competition and subsidy, digital trade chapter, and anti-fraud practices.Discussions on capital movement are nearing completion, though both sides have drawn clear red lines, excluding dairy, sugar, and rice from the FTA agreement talks. The focus remains on enhancing market access and addressing tariff and non-tariff barriers, with Indian Commerce Secretary Sunil Barthwal’s recent trip to Brussels restating the commitment to move forward.The FTA talks are part of a broader strategic alignment between India and EU-2 large economies, amid geopolitical changes and in the shadow of Donald Trump's tariffs. Last week, Prime Minister Narendra Modi and European Council President Antonio Costa and European Commission President Ursula von der Leyen held telephonic talks.The leaders reaffirmed their commitment to concluding the FTA swiftly and discussed pressing global issues, including the war in Ukraine and the India-Middle East-Europe Economic Corridor (IMEC). PM Modi emphasised India’s support for a peaceful resolution to the Ukraine conflict, while also extending an invitation to EU leaders for the India-EU Summit next year, expected to set the tone for the new strategic partnership agenda.The coming months promise a packed agenda. This week will also see a 30-member delegation from the EU’s Political and Security Committee visiting India, coinciding with a counter-terrorism dialogue in Brussels on September 9. The counter terror dialogue will be led by key officials from the two sides. India is expected to express its concerns over the issue of cross-border terror as both sides work to deal with the scourge of terrorism.On September 17, the EU Commission will unveil a key vision document outlining its strategic agenda with India—a political offer aimed at strengthening ties across all levels. &nbsp;It will be discussed at every level, from working groups to ministerial and head-of-government. The document is expected to be the bedrock of ties.Looking ahead, the 14th round of FTA talks is slated for early October, followed by a visit from the chair of the EU Parliament’s standing committee on trade matters. In November, EAM Jaishankar was invited to Brussels for the Indo-Pacific Ministerial Forum as the EU pivots towards the region that is seen as key to global growth. By late November, foreign policy and security consultations at the secretary level will take place in New Delhi, reviewing the broader strategic partnership. Around the same time, a strategic partnership review will take place.Meanwhile, plans are underway for the India-EU Trade and Technology Council (TTC) meeting this fall. Launched in February 2023, the TTC—India’s first such initiative with any partner—aims to bolster cooperation in trade, technology, and security, marking a significant milestone in bilateral relations. The crescendo of this diplomatic blitz this year will likely culminate with a visit by Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, to India ahead of next year’s summit. Her trip, the first since assuming office, will focus on the EU's commitment to elevating its partnership with India at a time of great geopolitical uncertainty.

This week will also see a 30-member delegation from the EU’s Political and Security Committee visiting India, coinciding with a counter-terrorism dialogue in Brussels on September 9. The counterterror dialogue will be led by key officials from the two sides.

In a push to deepen ties, India and the European Union are set to significantly elevate their engagement this week, with two high-level ministerial ( EU Commissioner level) visits to New Delhi and the 13th round of negotiations for a landmark Free Trade Agreement (FTA). The flurry of diplomatic activity comes even as both sides aim to conclude the FTA by year’s end, building on momentum from External Affairs Minister S. Jaishankar’s visit to Brussels and visit of European college led by President Ursula von der Leyen to India. This week, European Commissioner for Agriculture and Food Christophe Hansen and Commissioner for Trade and Economic Security Maroš Šefčovič will arrive in New Delhi, coinciding with the 13th round of FTA talks. The negotiations, which have made steady progress, have already provisionally closed 11 chapters, covering areas such as Intellectual properties, customs and trade facilitation, transparency, good regulatory practices, mutual administrative assistance, SMEs, sustainable food system, dispute settlement, competition and subsidy, digital trade chapter, and anti-fraud practices. Discussions on capital movement are nearing completion, though both sides have drawn clear red lines, excluding dairy, sugar, and rice from the FTA agreement talks. The focus remains on enhancing market access and addressing tariff and non-tariff barriers, with Indian Commerce Secretary Sunil Barthwal’s recent trip to Brussels restating the commitment to move forward. The FTA talks are part of a broader strategic alignment between India and EU-2 large economies, amid geopolitical changes and in the shadow of Donald Trump's tariffs. Last week, Prime Minister Narendra Modi and European Council President Antonio Costa and European Commission President Ursula von der Leyen held telephonic talks. The leaders reaffirmed their commitment to concluding the FTA swiftly and discussed pressing global issues, including the war in Ukraine and the India-Middle East-Europe Economic Corridor (IMEC). PM Modi emphasised India’s support for a peaceful resolution to the Ukraine conflict, while also extending an invitation to EU leaders for the India-EU Summit next year, expected to set the tone for the new strategic partnership agenda. The coming months promise a packed agenda. This week will also see a 30-member delegation from the EU’s Political and Security Committee visiting India, coinciding with a counter-terrorism dialogue in Brussels on September 9. The counter terror dialogue will be led by key officials from the two sides. India is expected to express its concerns over the issue of cross-border terror as both sides work to deal with the scourge of terrorism. On September 17, the EU Commission will unveil a key vision document outlining its strategic agenda with India—a political offer aimed at strengthening ties across all levels. It will be discussed at every level, from working groups to ministerial and head-of-government. The document is expected to be the bedrock of ties. Looking ahead, the 14th round of FTA talks is slated for early October, followed by a visit from the chair of the EU Parliament’s standing committee on trade matters. In November, EAM Jaishankar was invited to Brussels for the Indo-Pacific Ministerial Forum as the EU pivots towards the region that is seen as key to global growth. By late November, foreign policy and security consultations at the secretary level will take place in New Delhi, reviewing the broader strategic partnership. Around the same time, a strategic partnership review will take place. Meanwhile, plans are underway for the India-EU Trade and Technology Council (TTC) meeting this fall. Launched in February 2023, the TTC—India’s first such initiative with any partner—aims to bolster cooperation in trade, technology, and security, marking a significant milestone in bilateral relations. The crescendo of this diplomatic blitz this year will likely culminate with a visit by Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, to India ahead of next year’s summit. Her trip, the first since assuming office, will focus on the EU's commitment to elevating its partnership with India at a time of great geopolitical uncertainty.

This week will also see a 30-member delegation from the EU’s Political and Security Committee visiting India, coinciding with a counter-terrorism dialogue in Brussels on September 9. The counterterror dialogue will be led by key officials from the two sides.

India and EU to intensify engagement with 2 ministerial visits and FTA talks this week

The Trump administration has announced it will phase out longstanding U.S. security assistance programs for Eastern European nations bordering Russia, including the Baltic states. Backed by an executive order, this move underscores Trump’s push to shift defense responsibility onto European allies. The decision affects hundreds of millions in aid—a critical blow to NATO’s eastern defenses amid mounting geopolitical tensions.
What does it mean for U.S.-Europe ties and the future of regional security?

Trump's decision: U.S. To end security programs protecting eastern Europe from Russia 

European Commission President Ursula von der Leyen toured the Poland-Belarus border, calling for a stronger defence posture. The EU chief warned that frontline states near Russia are facing hybrid attacks amid escalating tensions.

EU says frontline states near Russia facing 'hybrid attacks' 

The United States and the European Union have entered a trade agreement, the White House announced on Thursday, adding that the deal&nbsp;represents a "concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment".&nbsp;"This Framework&nbsp;Agreement&nbsp;will put our trade and investment relationship –&nbsp;one of the&nbsp;largest in the world – on a solid footing and will reinvigorate our economies’&nbsp;reindustrialization," the White House said in the statement.&nbsp;&nbsp;The US said the agreement reflects that the EU acknowledged&nbsp;US concerns regarding&nbsp;trade imbalances. The deal would “unleash the full potential of our combined economic power”, it added.&nbsp;It said that the US and the European Union will expand the framework and continue to improve market access and increase trade and investment relationships.&nbsp;Per the agreement, the US will impose 15 per cent tariffs on most European Union imports. The US will further lower auto tariffs once the EU passes matching legislation, slashing tariffs.&nbsp;From September 1, the&nbsp;US will apply only MFN tariffs on EU aircraft/parts, generics, chemical precursors, and scarce natural resources.&nbsp;The EU will eliminate tariffs on all US industrial goods and grant preferential access for US seafood/agriculture.<h2>Here are some salient points of the trade agreement.&nbsp;</h2><h3>Energy &amp; Tech Purchases:</h3>1. EU to buy $750B in US LNG, oil, and nuclear products.2. EU to purchase at least $40B in US AI chips.<h3>Investment &amp; Cooperation:</h3>1. EU firms to invest $600B in US strategic sectors by 2028.2. Both sides to negotiate rules of origin to ensure benefits remain bilateral.3. Exploring cooperation on steel and aluminum market protections.4. Joint commitment to tackle digital trade barriers; EU pledges not to adopt network usage fees.

The United States and the European Union have entered a free-trade agreement, the White House announced on Thursday, adding that the deal represents a "concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment".

The United States and the European Union have entered a trade agreement, the White House announced on Thursday, adding that the deal represents a "concrete demonstration of our commitment to fair, balanced, and mutually beneficial trade and investment". "This Framework Agreement will put our trade and investment relationship – one of the largest in the world – on a solid footing and will reinvigorate our economies’ reindustrialization," the White House said in the statement. The US said the agreement reflects that the EU acknowledged US concerns regarding trade imbalances. The deal would “unleash the full potential of our combined economic power”, it added. It said that the US and the European Union will expand the framework and continue to improve market access and increase trade and investment relationships. Per the agreement, the US will impose 15 per cent tariffs on most European Union imports. The US will further lower auto tariffs once the EU passes matching legislation, slashing tariffs. From September 1, the US will apply only MFN tariffs on EU aircraft/parts, generics, chemical precursors, and scarce natural resources. The EU will eliminate tariffs on all US industrial goods and grant preferential access for US seafood/agriculture. Here are some salient points of the trade agreement. Energy & Tech Purchases: 1. EU to buy $750B in US LNG, oil, and nuclear products. 2. EU to purchase at least $40B in US AI chips. Investment & Cooperation: 1. EU firms to invest $600B in US strategic sectors by 2028. 2. Both sides to negotiate rules of origin to ensure benefits remain bilateral. 3. Exploring cooperation on steel and aluminum market protections. 4. Joint commitment to tackle digital trade barriers; EU pledges not to adopt network usage fees.

The White House said the US-EU trade agreement reflects that the European block acknowledged&nbsp;US concerns regarding&nbsp;trade imbalances. It said the agreement could be expanded to cover other areas.

US enters trade deal with European Union, to levy 15 per cent tariff: Check key details

US President Donald Trump's meeting with his Russian counterpart, Vladimir Putin, was followed by a flurry of reactions from around the world. Here's what the world leaders had to say about the historic meeting:<h2>EU calls for strong guarantees for Ukraine and Europe</h2>European Commission President Ursula von der Leyen said security guarantees were “essential” in any peace deal. “The EU is working closely with Zelensky and the United States to reach a just and lasting peace. Strong security guarantees that protect Ukrainian and European vital security interests are essential,” she wrote on X.<h2>Macron pushes coalition efforts</h2>French President Emmanuel Macron said France would work with the US and partners in the “coalition of the willing” to push for a peace framework with firm guarantees. He confirmed the coalition would convene soon to continue talks.<h2>India urges dialogue over conflict</h2>India’s foreign ministry spokesperson, Randhir Jaiswal, reiterated New Delhi’s position on diplomacy. “The way forward can only be through dialogue and diplomacy. The world wants to see an early end to the conflict in Ukraine,” he said.<h2>Slovakia questions European strategy</h2>Slovak Prime Minister Robert Fico, who has met Putin twice in the past year, criticised Europe’s current approach. He said in a Facebook statement, “The coming days will show whether the big players in the Union will support this process … or whether the unsuccessful European strategy of trying to weaken Russia through this conflict with all kinds of literally incredible financial, political or military assistance to Kyiv will continue.”<h2>Italy highlights Trump’s move on security guarantees</h2>Italian Prime Minister Giorgia Meloni described security guarantees as the “most interesting developments” from the Alaska summit. She added that Trump had backed the Italian proposal of guarantees “inspired by Nato’s article 5”, Reuters reported.<h2>UK praises Trump’s role but insists Zelensky must be part of peace</h2>British Prime Minister Keir Starmer praised Trump’s efforts. “President Trump’s efforts have brought us closer than ever before to ending Russia’s illegal war in Ukraine. His leadership in pursuit of an end to the killing should be commended,” he said. Starmer stressed that President Zelensky must be included in the next phase of negotiations. “The path to peace in Ukraine cannot be decided without him,” he added.<h2>Joint European statement backs trilateral summit</h2>A European Council statement signed by Macron, Meloni, German Chancellor Friedrich Merz, Starmer, Finnish President Alexander Stubb, Polish Prime Minister Donald Tusk, Council President António Costa and von der Leyen welcomed Trump’s role but insisted Ukraine must be at the table. “As President Trump said ‘there’s no deal until there’s a deal’. The next step must now be further talks including President Zelensky, whom he will meet soon,” it read.<h2>Poland warns of “decisive phase”</h2>Polish President Donald Tusk issued a stark warning, calling Putin a “cunning and ruthless player.” He said, “The game for Ukraine’s future, Poland’s security, and all of Europe has entered a decisive phase. Today, it is even clearer that Russia respects only the strong.”<h2>Trump fails to secure ceasefire but eyes future talks</h2>US President Donald Trump confirmed that no ceasefire was reached in Alaska after three hours of talks with Putin. He insisted his focus was now on securing a “full peace agreement.” Zelensky announced he would travel to Washington on Monday, while European leaders signalled readiness to toughen sanctions on Moscow after consulting Trump and holding their own lengthy discussions.

President Trump's meeting with Russian President Putin led to many reactions from leaders around the world. Here's what the world leaders had to say about the historic meeting:

US President Donald Trump's meeting with his Russian counterpart, Vladimir Putin, was followed by a flurry of reactions from around the world. Here's what the world leaders had to say about the historic meeting: EU calls for strong guarantees for Ukraine and Europe European Commission President Ursula von der Leyen said security guarantees were “essential” in any peace deal. “The EU is working closely with Zelensky and the United States to reach a just and lasting peace. Strong security guarantees that protect Ukrainian and European vital security interests are essential,” she wrote on X. Macron pushes coalition efforts French President Emmanuel Macron said France would work with the US and partners in the “coalition of the willing” to push for a peace framework with firm guarantees. He confirmed the coalition would convene soon to continue talks. India urges dialogue over conflict India’s foreign ministry spokesperson, Randhir Jaiswal, reiterated New Delhi’s position on diplomacy. “The way forward can only be through dialogue and diplomacy. The world wants to see an early end to the conflict in Ukraine,” he said. Slovakia questions European strategy Slovak Prime Minister Robert Fico, who has met Putin twice in the past year, criticised Europe’s current approach. He said in a Facebook statement, “The coming days will show whether the big players in the Union will support this process … or whether the unsuccessful European strategy of trying to weaken Russia through this conflict with all kinds of literally incredible financial, political or military assistance to Kyiv will continue.” Italy highlights Trump’s move on security guarantees Italian Prime Minister Giorgia Meloni described security guarantees as the “most interesting developments” from the Alaska summit. She added that Trump had backed the Italian proposal of guarantees “inspired by Nato’s article 5”, Reuters reported. UK praises Trump’s role but insists Zelensky must be part of peace British Prime Minister Keir Starmer praised Trump’s efforts. “President Trump’s efforts have brought us closer than ever before to ending Russia’s illegal war in Ukraine. His leadership in pursuit of an end to the killing should be commended,” he said. Starmer stressed that President Zelensky must be included in the next phase of negotiations. “The path to peace in Ukraine cannot be decided without him,” he added. Joint European statement backs trilateral summit A European Council statement signed by Macron, Meloni, German Chancellor Friedrich Merz, Starmer, Finnish President Alexander Stubb, Polish Prime Minister Donald Tusk, Council President António Costa and von der Leyen welcomed Trump’s role but insisted Ukraine must be at the table. “As President Trump said ‘there’s no deal until there’s a deal’. The next step must now be further talks including President Zelensky, whom he will meet soon,” it read. Poland warns of “decisive phase” Polish President Donald Tusk issued a stark warning, calling Putin a “cunning and ruthless player.” He said, “The game for Ukraine’s future, Poland’s security, and all of Europe has entered a decisive phase. Today, it is even clearer that Russia respects only the strong.” Trump fails to secure ceasefire but eyes future talks US President Donald Trump confirmed that no ceasefire was reached in Alaska after three hours of talks with Putin. He insisted his focus was now on securing a “full peace agreement.” Zelensky announced he would travel to Washington on Monday, while European leaders signalled readiness to toughen sanctions on Moscow after consulting Trump and holding their own lengthy discussions.

President Trump's meeting with Russian President Putin led to many reactions from leaders around the world. Here's what the world leaders had to say about the historic meeting:

'Game for Ukraine’s future entered decisive phase': How did world react to 'historic' Trump-Putin meeting?

After several months of uncertainty, tariffs, and tense transatlantic back-and-forth, the United States and European Union have finally struck a major trade deal. Announced on Sunday, the framework agreement marks a reset in economic ties under President Donald Trump’s second term, and it’s set to reportedly impact industries from automobiles to semiconductors to liquefied natural gas (LNG). The deal doesn’t just settle some of the biggest tariff disputes, it also sets the tone for future investments, energy trade and even defence procurement.&nbsp;&nbsp;So, what’s in the deal? And who wins or loses? Here’s a closer look.<h2>What does the deal include?</h2>Under the new trade deal, almost all European Union goods entering the US will now face a flat 15 per cent baseline tariff. That includes automobiles, semiconductors, and pharmaceuticals sectors that previously saw much higher import duties. For instance, EU-made cars currently face a 27.5 per cent duty, which will now be more than halved.&nbsp;However, there’s a twist.&nbsp;According to European Commission President Ursula von der Leyen, the US is still finalising separate decisions under its controversial Section 232 national security trade investigations, especially on pharmaceuticals and chips. “Whatever U.S. decisions come later on these sectors will be ‘on a different sheet of paper’,” von der Leyen clarified, as quoted by Reuters. This means that while a 15 per cent tariff ceiling is agreed upon, sectors like chips and drugs might still face special treatment later.<h2>Zero tariffs on aircraft, raw materials, and more</h2>There’s also some good news for specific sectors as both sides agreed to zero-for-zero tariffs on a range of goods. These include the following given things:<ul><li>All aircraft and aircraft components</li><li>Certain chemicals and generic medicines</li><li>Semiconductor equipment</li><li>Selected agricultural products</li><li>Critical raw materials and natural resources</li></ul>The deal also reportedly leaves the door open to expanding the list. However, tariffs on spirits, a major export for both sides, are still “to be established”.<h2>What about Steel &amp; Aluminum?</h2>On the other hand, there’s no relief on metals yet.&nbsp;US tariffs on European steel and aluminium will remain at 50 per cent, at least for now. But according to von der Leyen, these duties will eventually be reduced and converted into a quota-based system, which would cap volumes but offer tariff relief and will reportedly be a compromise often used in sensitive sectors.<h2>$750B LNG deal &amp; Defence&nbsp;</h2>In one of the most strategic parts of the agreement, the EU committed to purchasing $250 billion worth of US liquefied natural gas (LNG) annually for three years, replacing its now-curtailed Russian gas imports. That adds up to $750 billion in total purchases. This is a massive boost for US energy exporters. The EU also pledged to source nuclear fuel from the US, marking a deepening of its energy security ties with Washington.&nbsp;The deal doesn’t stop at trade. Europe also agreed to ramp up defence cooperation. The EU will buy US-made military equipment, though the full list is yet to be disclosed. In return, European companies are set to invest $600 billion in the United States over the course of Trump’s second term, providing a major boost to US manufacturing and tech. As per Reuters, this clause aims to re-anchor EU supply chains in the US and bolster Trump’s “America First” industrial policy, particularly in strategic sectors like clean tech, AI chips, and advanced machinery.<h2>So, who wins?</h2>For US exporters, especially those in the LNG, aerospace, defence, and semiconductor equipment sectors, this deal is a windfall. Energy majors like Cheniere Energy and ExxonMobil could see massive gains from the LNG commitment. European automakers, meanwhile, finally have tariff clarity, though they still face a 15 per cent barrier. That’s better than 27.5 per cent, but still a significant cost in a competitive market.&nbsp;Consumers on both sides of the Atlantic might feel the pinch in the short term, especially as prices adjust to the new tariff regime. But longer-term, reduced trade friction may lead to smoother supply chains and price stabilisation.<h2>What’s next?</h2>Though Trump hailed the deal by calling it as a “historic win for American workers and security”, while EU leaders framed it as a pragmatic compromise in a changing global order.&nbsp;Implementation will take months. Some clauses like the steel quota plan or chip tariff clarifications are still pending. But the broad contours are now set before the August 1 deadline.&nbsp;&nbsp;In an era of tariff wars, energy insecurity, and shifting alliances, this deal brings rare predictability and perhaps a sign that Brussels and Washington can still do business, even under pressure.&nbsp;(With inputs from the agencies)&nbsp;

The agreement introduces a 15% baseline tariff on most EU goods entering the US, cutting previous automobile and semiconductor duties. Key sectors like pharmaceuticals might face different treatment later. Zero tariffs apply to aircraft and certain chemicals. 

After several months of uncertainty, tariffs, and tense transatlantic back-and-forth, the United States and European Union have finally struck a major trade deal. Announced on Sunday, the framework agreement marks a reset in economic ties under President Donald Trump’s second term, and it’s set to reportedly impact industries from automobiles to semiconductors to liquefied natural gas (LNG). The deal doesn’t just settle some of the biggest tariff disputes, it also sets the tone for future investments, energy trade and even defence procurement. So, what’s in the deal? And who wins or loses? Here’s a closer look. What does the deal include? Under the new trade deal, almost all European Union goods entering the US will now face a flat 15 per cent baseline tariff. That includes automobiles, semiconductors, and pharmaceuticals sectors that previously saw much higher import duties. For instance, EU-made cars currently face a 27.5 per cent duty, which will now be more than halved. However, there’s a twist. According to European Commission President Ursula von der Leyen, the US is still finalising separate decisions under its controversial Section 232 national security trade investigations, especially on pharmaceuticals and chips. “Whatever U.S. decisions come later on these sectors will be ‘on a different sheet of paper’,” von der Leyen clarified, as quoted by Reuters. This means that while a 15 per cent tariff ceiling is agreed upon, sectors like chips and drugs might still face special treatment later. Zero tariffs on aircraft, raw materials, and more There’s also some good news for specific sectors as both sides agreed to zero-for-zero tariffs on a range of goods. These include the following given things: All aircraft and aircraft components Certain chemicals and generic medicines Semiconductor equipment Selected agricultural products Critical raw materials and natural resources The deal also reportedly leaves the door open to expanding the list. However, tariffs on spirits, a major export for both sides, are still “to be established”. What about Steel & Aluminum? On the other hand, there’s no relief on metals yet. US tariffs on European steel and aluminium will remain at 50 per cent, at least for now. But according to von der Leyen, these duties will eventually be reduced and converted into a quota-based system, which would cap volumes but offer tariff relief and will reportedly be a compromise often used in sensitive sectors. $750B LNG deal & Defence In one of the most strategic parts of the agreement, the EU committed to purchasing $250 billion worth of US liquefied natural gas (LNG) annually for three years, replacing its now-curtailed Russian gas imports. That adds up to $750 billion in total purchases. This is a massive boost for US energy exporters. The EU also pledged to source nuclear fuel from the US, marking a deepening of its energy security ties with Washington. The deal doesn’t stop at trade. Europe also agreed to ramp up defence cooperation. The EU will buy US-made military equipment, though the full list is yet to be disclosed. In return, European companies are set to invest $600 billion in the United States over the course of Trump’s second term, providing a major boost to US manufacturing and tech. As per Reuters, this clause aims to re-anchor EU supply chains in the US and bolster Trump’s “America First” industrial policy, particularly in strategic sectors like clean tech, AI chips, and advanced machinery. So, who wins? For US exporters, especially those in the LNG, aerospace, defence, and semiconductor equipment sectors, this deal is a windfall. Energy majors like Cheniere Energy and ExxonMobil could see massive gains from the LNG commitment. European automakers, meanwhile, finally have tariff clarity, though they still face a 15 per cent barrier. That’s better than 27.5 per cent, but still a significant cost in a competitive market. Consumers on both sides of the Atlantic might feel the pinch in the short term, especially as prices adjust to the new tariff regime. But longer-term, reduced trade friction may lead to smoother supply chains and price stabilisation. What’s next? Though Trump hailed the deal by calling it as a “historic win for American workers and security”, while EU leaders framed it as a pragmatic compromise in a changing global order. Implementation will take months. Some clauses like the steel quota plan or chip tariff clarifications are still pending. But the broad contours are now set before the August 1 deadline. In an era of tariff wars, energy insecurity, and shifting alliances, this deal brings rare predictability and perhaps a sign that Brussels and Washington can still do business, even under pressure. (With inputs from the agencies)

The US and EU have reached a significant trade deal, resetting economic relations amid tariffs and disputes.

EU–US trade deal 2025: What it means for cars, chips, LNG and your wallet?

US President Donald Trump has said that Washington is on the brink of sealing a trade deal with India, while a breakthrough with the European Union could also be in sight. However, he offered no clear path forward on negotiations with Canada, as trade tensions continue to mount ahead of a key tariff deadline. In an interview aired on Real America’s Voice on Wednesday, Trump said, “We’re very close to India, and … we could possibly make a deal with [the] EU.” The comments come as the Trump administration races to conclude major trade negotiations ahead of August 1 — the date when broad-based US import tariffs are set to rise again.&nbsp;As per Reuters, the Trump administration has intensified its trade talks in recent weeks as it attempts to rebalance the country’s trade relationships and shrink the US trade deficit. Both Indian and European delegations are currently in Washington for fresh rounds of dialogue.<h2>“EU was brutal, now they’re being nice,” says Trump</h2>The US president took a swipe at the European Union’s trade posture in the past, saying the bloc had long imposed unfavourable terms on Washington. “The European Union has been brutal, and now they’re being very nice,” Trump remarked. “They want to make a deal, and it’ll be a lot different than the deal that we’ve had for years,” he added, as quoted by Reuters.&nbsp;EU trade chief Maros Sefcovic arrived in Washington on Wednesday for continued talks on tariffs and industrial standards. A resolution with Brussels could ease tensions that have been brewing since Trump first threatened sweeping levies on European cars and machinery earlier this year.<h2>India–US trade pact gaining momentum</h2>India’s trade delegation, led by senior commerce officials, landed in Washington on Monday to advance talks on a bilateral trade deal. The two sides have been discussing a framework that covers tariffs, market access, and technology cooperation, particularly in semiconductors and critical minerals.&nbsp;As per Reuters, Indian officials have signalled readiness to make limited concessions in areas such as medical devices and agricultural imports, while seeking tariff relief on steel, pharmaceuticals, and textiles. A deal would mark a major reset in India–US trade ties, which had faced repeated frictions over tariffs, data protection, and digital trade policies.<h2>Canada deal uncertain, countermeasures on the table</h2>Trump struck a more cautious tone when asked about trade talks with Canada. “Too soon to say,” he said, aligning with remarks from Canadian Prime Minister Mark Carney, who noted earlier on Wednesday that a deal “that works for Canadian workers” was not yet on the table.&nbsp;Canada, like the EU, is reportedly preparing counter-tariffs in case the US pushes ahead with unilateral duties. Talks have stalled over contentious issues such as dairy access, labour standards, and digital taxation.<h2>Blanket tariffs on ‘smaller countries’ under consideration</h2>In a striking remark, Trump added that he may impose blanket tariffs of 10 per cent or 15 per cent on imports from “smaller countries,” though he did not specify which nations could be affected. The proposal aligns with Trump’s broader trade doctrine of using tariff threats to pressure partners into faster concessions.&nbsp;With the August 1 deadline approaching, most US import duties are scheduled to rise unless specific trade agreements are reached. The looming hikes have pushed multiple US allies to the negotiating table, fearing a renewed wave of economic disruption.As Trump prepares to escalate tariffs across the board, trade diplomacy is entering a critical phase. A deal with India looks imminent, while Europe may follow. But for Canada and smaller nations, the path ahead remains clouded by tariffs, countermeasures, and deepening uncertainty. &nbsp;

Trump criticized the EU prior trade stance, stating they are now willing to negotiate more favorably. Indian officials are negotiating a trade pact covering tariffs and cooperation, while Canada remains cautious, with ongoing issues related to dairy, labor, and digital taxation.

US President Donald Trump has said that Washington is on the brink of sealing a trade deal with India, while a breakthrough with the European Union could also be in sight. However, he offered no clear path forward on negotiations with Canada, as trade tensions continue to mount ahead of a key tariff deadline. In an interview aired on Real America’s Voice on Wednesday, Trump said, “We’re very close to India, and … we could possibly make a deal with [the] EU.” The comments come as the Trump administration races to conclude major trade negotiations ahead of August 1 — the date when broad-based US import tariffs are set to rise again. As per Reuters, the Trump administration has intensified its trade talks in recent weeks as it attempts to rebalance the country’s trade relationships and shrink the US trade deficit. Both Indian and European delegations are currently in Washington for fresh rounds of dialogue. “EU was brutal, now they’re being nice,” says Trump The US president took a swipe at the European Union’s trade posture in the past, saying the bloc had long imposed unfavourable terms on Washington. “The European Union has been brutal, and now they’re being very nice,” Trump remarked. “They want to make a deal, and it’ll be a lot different than the deal that we’ve had for years,” he added, as quoted by Reuters. EU trade chief Maros Sefcovic arrived in Washington on Wednesday for continued talks on tariffs and industrial standards. A resolution with Brussels could ease tensions that have been brewing since Trump first threatened sweeping levies on European cars and machinery earlier this year. India–US trade pact gaining momentum India’s trade delegation, led by senior commerce officials, landed in Washington on Monday to advance talks on a bilateral trade deal. The two sides have been discussing a framework that covers tariffs, market access, and technology cooperation, particularly in semiconductors and critical minerals. As per Reuters, Indian officials have signalled readiness to make limited concessions in areas such as medical devices and agricultural imports, while seeking tariff relief on steel, pharmaceuticals, and textiles. A deal would mark a major reset in India–US trade ties, which had faced repeated frictions over tariffs, data protection, and digital trade policies. Canada deal uncertain, countermeasures on the table Trump struck a more cautious tone when asked about trade talks with Canada. “Too soon to say,” he said, aligning with remarks from Canadian Prime Minister Mark Carney, who noted earlier on Wednesday that a deal “that works for Canadian workers” was not yet on the table. Canada, like the EU, is reportedly preparing counter-tariffs in case the US pushes ahead with unilateral duties. Talks have stalled over contentious issues such as dairy access, labour standards, and digital taxation. Blanket tariffs on ‘smaller countries’ under consideration In a striking remark, Trump added that he may impose blanket tariffs of 10 per cent or 15 per cent on imports from “smaller countries,” though he did not specify which nations could be affected. The proposal aligns with Trump’s broader trade doctrine of using tariff threats to pressure partners into faster concessions. With the August 1 deadline approaching, most US import duties are scheduled to rise unless specific trade agreements are reached. The looming hikes have pushed multiple US allies to the negotiating table, fearing a renewed wave of economic disruption. As Trump prepares to escalate tariffs across the board, trade diplomacy is entering a critical phase. A deal with India looks imminent, while Europe may follow. But for Canada and smaller nations, the path ahead remains clouded by tariffs, countermeasures, and deepening uncertainty.

US President Donald Trump indicated that a trade deal with India is close and a possible breakthrough with the EU may also occur.

Trump says India trade deal near, EU talks progress, Canada in limbo

The European Union is buying precious time to avoid a damaging transatlantic trade war. Brussels announced on Sunday it will extend its pause on retaliatory tariffs against the United States until early August, as negotiators race to strike a deal that could head off sweeping new import duties threatened by US President Donald Trump. According to Reuters, Trump warned he would impose a 30 per cent tariff on most EU and Mexican imports starting August 1. That threat leaves less than three weeks for negotiators to work out so-called “framework” agreements that could reduce or postpone the punitive measures.&nbsp;White House economic adviser Kevin Hassett made clear on Sunday that Trump is not satisfied with the concessions offered so far. “The president thinks that deals need to be better,” Hassett told ABC’s This Week, as quoted by Reuters. “And to basically put a line in the sand, he sent these letters out to folks, and we’ll see how it works out.”<h2>Brussels pushes for talks over retaliation</h2>European Commission President Ursula von der Leyen, whose executive body handles trade policy for the 27-member bloc, said the EU would maintain its “two-track approach” of continuing negotiations while preparing retaliatory measures in case talks break down.&nbsp;“We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now,” von der Leyen told a press conference on Sunday, according to Reuters.Her decision to delay retaliatory tariffs underscores the EU’s aim to avoid a tit-for-tat escalation that could deal a heavy blow to its export-dependent economies, especially Germany.<h2>EU leaders debate strategy as deadline nears</h2>But the looming August 1 deadline is exposing differences within the EU over how hard to push back. German Chancellor Friedrich Merz sounded a conciliatory note in an interview with ARD television, saying he was “really committed” to finding a solution with Washington and warning that a 30 per cent tariff would “interfere with everything and hit the German export industry to the core.”&nbsp;By contrast, French President Emmanuel Macron urged the EU Commission to show “determination to defend European interests resolutely” and said retaliation might need to involve the bloc’s so-called anti-coercion instruments. German Finance Minister Lars Klingbeil also signalled a tougher line if talks fail. “If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe,” Klingbeil told Sueddeutsche Zeitung, as reported by Reuters.<h2>Billions in tariffs on standby</h2>While Brussels has so far held off on hitting back, it has prepared two large tariff packages targeting up to €93 billion worth of US goods, Reuters reported. A first package, in response to Trump’s 50 per cent tariffs on imported steel and aluminium, would target €21 billion in US exports. That retaliation had been suspended in April for 90 days to allow negotiations, and the pause was set to expire on Monday before the EU announced its extension.&nbsp;A second package, designed to counter Trump’s planned “reciprocal” tariffs, has been in development since May and would target up to €72 billion in US goods. The full list of products hasn’t been made public yet and will need formal approval by member states.<h2>Countdown to a high-stakes deadline</h2>The next few weeks will be critical in determining whether the EU and US can avoid a damaging new escalation in their long-running trade tensions. Trump’s tariff threats are part of a broader push to force trading partners to cut trade deficits with the US, an approach that has repeatedly rattled allies.&nbsp;For now, the EU is betting on diplomacy while quietly preparing its own arsenal of countermeasures. As von der Leyen put it, Europe still wants a deal but it’s getting ready for the worst.&nbsp;

EU delays tariffs to avoid US trade war, aiming for a deal before Trump August 1 deadline for 30% import duties on EU and Mexican goods.

The European Union is buying precious time to avoid a damaging transatlantic trade war. Brussels announced on Sunday it will extend its pause on retaliatory tariffs against the United States until early August, as negotiators race to strike a deal that could head off sweeping new import duties threatened by US President Donald Trump. According to Reuters, Trump warned he would impose a 30 per cent tariff on most EU and Mexican imports starting August 1. That threat leaves less than three weeks for negotiators to work out so-called “framework” agreements that could reduce or postpone the punitive measures. White House economic adviser Kevin Hassett made clear on Sunday that Trump is not satisfied with the concessions offered so far. “The president thinks that deals need to be better,” Hassett told ABC’s This Week, as quoted by Reuters. “And to basically put a line in the sand, he sent these letters out to folks, and we’ll see how it works out.” Brussels pushes for talks over retaliation European Commission President Ursula von der Leyen, whose executive body handles trade policy for the 27-member bloc, said the EU would maintain its “two-track approach” of continuing negotiations while preparing retaliatory measures in case talks break down. “We have always been very clear that we prefer a negotiated solution. This remains the case, and we will use the time that we have now,” von der Leyen told a press conference on Sunday, according to Reuters. Her decision to delay retaliatory tariffs underscores the EU’s aim to avoid a tit-for-tat escalation that could deal a heavy blow to its export-dependent economies, especially Germany. EU leaders debate strategy as deadline nears But the looming August 1 deadline is exposing differences within the EU over how hard to push back. German Chancellor Friedrich Merz sounded a conciliatory note in an interview with ARD television, saying he was “really committed” to finding a solution with Washington and warning that a 30 per cent tariff would “interfere with everything and hit the German export industry to the core.” By contrast, French President Emmanuel Macron urged the EU Commission to show “determination to defend European interests resolutely” and said retaliation might need to involve the bloc’s so-called anti-coercion instruments. German Finance Minister Lars Klingbeil also signalled a tougher line if talks fail. “If a fair negotiated solution does not succeed, then we must take decisive countermeasures to protect jobs and companies in Europe,” Klingbeil told Sueddeutsche Zeitung, as reported by Reuters. Billions in tariffs on standby While Brussels has so far held off on hitting back, it has prepared two large tariff packages targeting up to €93 billion worth of US goods, Reuters reported. A first package, in response to Trump’s 50 per cent tariffs on imported steel and aluminium, would target €21 billion in US exports. That retaliation had been suspended in April for 90 days to allow negotiations, and the pause was set to expire on Monday before the EU announced its extension. A second package, designed to counter Trump’s planned “reciprocal” tariffs, has been in development since May and would target up to €72 billion in US goods. The full list of products hasn’t been made public yet and will need formal approval by member states. Countdown to a high-stakes deadline The next few weeks will be critical in determining whether the EU and US can avoid a damaging new escalation in their long-running trade tensions. Trump’s tariff threats are part of a broader push to force trading partners to cut trade deficits with the US, an approach that has repeatedly rattled allies. For now, the EU is betting on diplomacy while quietly preparing its own arsenal of countermeasures. As von der Leyen put it, Europe still wants a deal but it’s getting ready for the worst.

The EU has extended its pause on retaliatory tariffs until August in hopes of striking a trade deal with the US, as Trump threatens steep new import duties.

Trump demands more trade concessions as EU delays tariff retaliation

United States President Donald Trump has threatened to slap 30 per cent tariffs on imports from both the European Union and Mexico starting August 1, reigniting fears of a fresh wave of trade conflict with key allies.&nbsp;As per Reuters, the warning was delivered in letters Trump posted on his Truth Social platform on Saturday, addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum.&nbsp;The dramatic move marks an escalation in what has been a rocky year of negotiations between the US and some of its largest trading partners. Trump, who has previously relied on tariffs to extract trade concessions, appears determined to ramp up pressure again.<h2>EU, Mexico call tariffs unfair and disruptive</h2>Both the European Union and Mexico quickly pushed back against the threat, describing the proposed 30 per cent tariffs as unfair and disruptive to established supply chains.&nbsp;European Commission President Ursula von der Leyen warned that the move would damage essential transatlantic commerce. “Such tariffs would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” she said, as quoted by Reuters.&nbsp;She added the EU would continue to seek a negotiated settlement but would also “take all necessary steps to safeguard EU interests,” including considering proportionate countermeasures.&nbsp;Mexico’s President Claudia Sheinbaum also struck a defiant but measured tone, saying she believed an agreement could still be reached. “I’ve always said that in these cases, what you have to do is keep a cool head,” she told local media, reaffirming that Mexico would defend its sovereignty in negotiations.<h2>Broader tariff offensive</h2>Reuters reported that Trump didn’t stop with the EU and Mexico. In the past week, his administration sent similar letters to 23 other trading partners—including Canada, Japan and Brazil—proposing blanket tariff rates from 20 per cent up to 50 per cent.&nbsp;These new tariff threats come on top of existing sectoral tariffs: the US already charges 50 per cent on steel and aluminium imports and 25 per cent on autos. Trump’s letter clarified the new 30 per cent rate was “separate” from these existing measures.&nbsp;While the administration set an August 1 deadline for the threatened tariffs to take effect, Trump suggested countries still had time to negotiate to avoid them. Analysts noted he has a history of using aggressive tariff threats as leverage before pulling back.<h2>Politics and trade deficits</h2>The justification for the tariff hikes has varied. In his letter to the EU, Trump demanded that Europe remove its own tariffs to help reduce the US trade deficit. “The European Union will allow complete, open market access to the United States, with no tariff being charged to us,” he wrote, arguing for reciprocal treatment.&nbsp;Mexico’s letter singled out the cross-border drug trade. Trump criticised Mexico’s efforts to stop cartels smuggling fentanyl, blaming the country for failing to prevent North America from becoming what he described as a “narco-trafficking playground.”&nbsp;Reuters noted that while Trump’s letter to Mexico proposed a 30 per cent tariff rate, the threat to Canada was even steeper at 35 per cent, despite data showing fentanyl seizures at the Canadian border are minimal compared to the US-Mexico border.<h2>Markets watching closely</h2>The new tariff threats come despite the US stock market recently hitting record highs. Analysts told Reuters that Trump is betting on the resilience of the American economy to weather any short-term turbulence caused by a trade war.&nbsp;But there is real concern among business leaders and trade experts that a new wave of tariffs could undermine supply chains, raise costs for consumers, and prompt retaliatory measures.Bernd Lange, head of the European Parliament’s trade committee, told Reuters that the EU should consider countermeasures as soon as Monday, calling Trump’s approach “a slap in the face for the negotiations.”&nbsp;Jacob Funk Kirkegaard, a senior fellow at the Brussels-based think tank Bruegel, warned the move risked triggering a tariff spiral reminiscent of the trade war with China. “US and Chinese tariffs went up together and they came back down again. Not all the way down, but still down together,” he said.<h2>Billions in new revenue, but diplomatic strain</h2>Despite the diplomatic fallout, the Trump administration’s aggressive trade policy has delivered new customs revenue. According to US Treasury data cited by Reuters, customs duties revenue topped $100 billion in the federal fiscal year through June.&nbsp;However, it has also strained relations with close allies. Japan’s Prime Minister Shigeru Ishiba recently said Tokyo needed to reduce its dependence on the US. Some European allies have even begun exploring alternatives to US-made weapons systems in response to Washington’s hardball trade tactics.&nbsp;Trump’s latest tariff threats underscore his willingness to play tough on trade as he seeks leverage for new deals. But with an August 1 deadline looming and negotiations with partners still ongoing, the world will be watching to see whether this is genuine policy or another high-stakes negotiating tactic. &nbsp;

President Donald Trump has warned of 30% tariffs on imports from the EU and Mexico, escalating trade tensions just weeks ahead of the August 1 deadline. The move, criticised as disruptive and unfair by both Brussels and Mexico City, is part of a broader tariff push targeting over 20 nations.

United States President Donald Trump has threatened to slap 30 per cent tariffs on imports from both the European Union and Mexico starting August 1, reigniting fears of a fresh wave of trade conflict with key allies. As per Reuters, the warning was delivered in letters Trump posted on his Truth Social platform on Saturday, addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum. The dramatic move marks an escalation in what has been a rocky year of negotiations between the US and some of its largest trading partners. Trump, who has previously relied on tariffs to extract trade concessions, appears determined to ramp up pressure again. EU, Mexico call tariffs unfair and disruptive Both the European Union and Mexico quickly pushed back against the threat, describing the proposed 30 per cent tariffs as unfair and disruptive to established supply chains. European Commission President Ursula von der Leyen warned that the move would damage essential transatlantic commerce. “Such tariffs would disrupt essential transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic,” she said, as quoted by Reuters. She added the EU would continue to seek a negotiated settlement but would also “take all necessary steps to safeguard EU interests,” including considering proportionate countermeasures. Mexico’s President Claudia Sheinbaum also struck a defiant but measured tone, saying she believed an agreement could still be reached. “I’ve always said that in these cases, what you have to do is keep a cool head,” she told local media, reaffirming that Mexico would defend its sovereignty in negotiations. Broader tariff offensive Reuters reported that Trump didn’t stop with the EU and Mexico. In the past week, his administration sent similar letters to 23 other trading partners—including Canada, Japan and Brazil—proposing blanket tariff rates from 20 per cent up to 50 per cent. These new tariff threats come on top of existing sectoral tariffs: the US already charges 50 per cent on steel and aluminium imports and 25 per cent on autos. Trump’s letter clarified the new 30 per cent rate was “separate” from these existing measures. While the administration set an August 1 deadline for the threatened tariffs to take effect, Trump suggested countries still had time to negotiate to avoid them. Analysts noted he has a history of using aggressive tariff threats as leverage before pulling back. Politics and trade deficits The justification for the tariff hikes has varied. In his letter to the EU, Trump demanded that Europe remove its own tariffs to help reduce the US trade deficit. “The European Union will allow complete, open market access to the United States, with no tariff being charged to us,” he wrote, arguing for reciprocal treatment. Mexico’s letter singled out the cross-border drug trade. Trump criticised Mexico’s efforts to stop cartels smuggling fentanyl, blaming the country for failing to prevent North America from becoming what he described as a “narco-trafficking playground.” Reuters noted that while Trump’s letter to Mexico proposed a 30 per cent tariff rate, the threat to Canada was even steeper at 35 per cent, despite data showing fentanyl seizures at the Canadian border are minimal compared to the US-Mexico border. Markets watching closely The new tariff threats come despite the US stock market recently hitting record highs. Analysts told Reuters that Trump is betting on the resilience of the American economy to weather any short-term turbulence caused by a trade war. But there is real concern among business leaders and trade experts that a new wave of tariffs could undermine supply chains, raise costs for consumers, and prompt retaliatory measures. Bernd Lange, head of the European Parliament’s trade committee, told Reuters that the EU should consider countermeasures as soon as Monday, calling Trump’s approach “a slap in the face for the negotiations.” Jacob Funk Kirkegaard, a senior fellow at the Brussels-based think tank Bruegel, warned the move risked triggering a tariff spiral reminiscent of the trade war with China. “US and Chinese tariffs went up together and they came back down again. Not all the way down, but still down together,” he said. Billions in new revenue, but diplomatic strain Despite the diplomatic fallout, the Trump administration’s aggressive trade policy has delivered new customs revenue. According to US Treasury data cited by Reuters, customs duties revenue topped $100 billion in the federal fiscal year through June. However, it has also strained relations with close allies. Japan’s Prime Minister Shigeru Ishiba recently said Tokyo needed to reduce its dependence on the US. Some European allies have even begun exploring alternatives to US-made weapons systems in response to Washington’s hardball trade tactics. Trump’s latest tariff threats underscore his willingness to play tough on trade as he seeks leverage for new deals. But with an August 1 deadline looming and negotiations with partners still ongoing, the world will be watching to see whether this is genuine policy or another high-stakes negotiating tactic.

US President Donald Trump threatens sweeping 30% tariffs on EU and Mexico starting August 1, sparking global backlash and fears of a new trade war.

Trump threatens 30% tariffs on EU and Mexico, escalating trade tensions

European leaders are rallying once again after Trump threatened to impose 30% tariffs on all EU and Mexican imports starting August 1. This had been the recurring theme in the US-EU relationship since the beginning of the second term of the Trump administration. French President Emmanuel Macron on Saturday condemned US President Donald Trump's threat and called on the EU to "resolutely defend European interests".“France fully supports the European Commission in negotiations,” Macron stated on social media. “The deal must reflect the mutual respect that trade partners such as the EU and US owe one another.” He also urged to prepare for credible countermeasures if no feasible deal is reached before the deadline.&nbsp;

<blockquote class="twitter-tweet">Along with the President of the European Commission, France shares the same very strong disapproval at the announcement of horizontal 30% tariffs on EU exports to the United States from August 1st. This announcement comes after weeks of intense engagement by the Commission in…&mdash; Emmanuel Macron (@EmmanuelMacron) <a href="https://twitter.com/EmmanuelMacron/status/1944068012799143938?ref_src=twsrc%5Etfw">July 12, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Meanwhile, in Berlin, German officials struck a more measured tone but joined in Macron’s call for swift diplomacy. "The EU now must, in the time that remains, negotiate in a pragmatic manner a solution with the United States," said Germany's Economy Minister Katherina Reiche in a statement. The Federation of German Industries (BDI) echoed the same voice, calling the threat “a wake-up call” for industry and diplomacy alike.""A trade conflict between two economic areas as closely linked as the EU and the United States harms economic recovery, innovation strength, and ultimately confidence in international cooperation," warned a senior BDI official.<h2>A fractured west</h2>The joint chorus of concern from Paris and Berlin shows a rare alignment when the European Union is suffering from internal divisions over enlargement, energy policy, and defence. However, Berlin seemed more docile and pragmatic compared to Macron's aggressive postures. It remains to be seen whether this can unite the EU's economic heavyweights into urgent action. European Commission chief Ursula von der Leyen reiterated EU will not be “intimidated into accepting unfair terms.”&nbsp;

European leaders are calling for urgent action after the US President Donald Trump issued a dramatic threat to impose 30% tariffs on all EU and Mexican imports starting August 1, escalating the trade tension between Washington and two of its largest trade partners.

European leaders are rallying once again after Trump threatened to impose 30% tariffs on all EU and Mexican imports starting August 1. This had been the recurring theme in the US-EU relationship since the beginning of the second term of the Trump administration. French President Emmanuel Macron on Saturday condemned US President Donald Trump's threat and called on the EU to "resolutely defend European interests". “France fully supports the European Commission in negotiations,” Macron stated on social media. “The deal must reflect the mutual respect that trade partners such as the EU and US owe one another.” He also urged to prepare for credible countermeasures if no feasible deal is reached before the deadline.

European leaders are calling for urgent action after the US President Donald Trump issued a dramatic threat to impose 30% tariffs on all EU and Mexican imports starting August 1, escalating the trade tension between Washington and two of its largest trade partners.

A fractured west: Macron, German leaders rally to 'defend European interests' against Trump’s 30% tariff threat

US President Donald Trump on Saturday (July 12) announced steep new tariffs on goods coming from the European Union and Mexico, increasing tensions over global trade.<h2>New 30% tariff on imports from EU and Mexico</h2>In letters posted to his social media platform, Truth Social, Trump revealed that a 30% tariff will apply to goods imported from both the European Union and Mexico starting 1 August. The decision surprised many, as earlier reports had suggested the rate could be closer to 10%.Also read: <a href="https://www.wionews.com/world/doj-s-epstein-files-prison-video-wasn-t-raw-report-says-it-was-edited-in-premiere-pro-1752320677841">'Nearly impossible to explain': DOJ’s Epstein prison video wasn’t ‘raw’, report says it was edited in Premiere Pro</a><h2>Mexico praised but warned</h2>In his message to Mexico’s leadership, Trump said the country had helped reduce the flow of undocumented migrants and fentanyl into the United States. But he added that Mexico hadn’t done enough to prevent the region from becoming a “Narco-Trafficking Playground.”<h2>EU accused of unfair trade</h2>Trump criticised the EU’s trade practices, accusing the bloc of maintaining long-term and one-sided tariffs. “Our relationship has been, unfortunately, far from Reciprocal,” he said. “We must move away from these long-term, large, and persistent Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump added.<h2>Fears of trade war grow in Europe</h2>European officials were hoping to ease trade tensions and finalise a deal, but Trump’s new tariff announcement has thrown those hopes into doubt. The 30% rate is much higher than what the European trade commissioner Maroš Šefčovič was believed to have negotiated. European products such as Belgian chocolate, Irish butter, and Italian olive oil could be hit hardest, sparking fears of a trade war.<h2>EU expected to demand fresh talks</h2>While the EU had reached a deal in principle, sources told The Guardian it was only three pages long and not legally binding. Now, Brussels is expected to call for new negotiations, believing Trump is using the tariff threat to pressure the bloc for better terms. Trump has previously called the EU “nastier” than China in trade matters.The UK’s recent trade agreement with the US took seven weeks to be formally registered. That deal reduced car export tariffs but left out key pledges on British steel. Creating a formal, legal version of the EU deal could face similar delays and complications.The announcement ends a week of mixed signals from Trump. On Monday, he extended talks with the EU until 1 August. Then on Tuesday, he said the bloc would “probably” get a letter setting new tariffs within 48 hours.

In letters posted to his social media platform, Truth Social, Trump revealed that a 30% tariff will apply to goods imported from both the European Union and Mexico starting 1 August. The decision surprised many, as earlier reports had suggested the rate could be closer to 10%.

US President Donald Trump on Saturday (July 12) announced steep new tariffs on goods coming from the European Union and Mexico, increasing tensions over global trade. New 30% tariff on imports from EU and Mexico In letters posted to his social media platform, Truth Social, Trump revealed that a 30% tariff will apply to goods imported from both the European Union and Mexico starting 1 August. The decision surprised many, as earlier reports had suggested the rate could be closer to 10%. Also read: 'Nearly impossible to explain': DOJ’s Epstein prison video wasn’t ‘raw’, report says it was edited in Premiere Pro Mexico praised but warned In his message to Mexico’s leadership, Trump said the country had helped reduce the flow of undocumented migrants and fentanyl into the United States. But he added that Mexico hadn’t done enough to prevent the region from becoming a “Narco-Trafficking Playground.” EU accused of unfair trade Trump criticised the EU’s trade practices, accusing the bloc of maintaining long-term and one-sided tariffs. “Our relationship has been, unfortunately, far from Reciprocal,” he said. “We must move away from these long-term, large, and persistent Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers,” Trump added. Fears of trade war grow in Europe European officials were hoping to ease trade tensions and finalise a deal, but Trump’s new tariff announcement has thrown those hopes into doubt. The 30% rate is much higher than what the European trade commissioner Maroš Šefčovič was believed to have negotiated. European products such as Belgian chocolate, Irish butter, and Italian olive oil could be hit hardest, sparking fears of a trade war. EU expected to demand fresh talks While the EU had reached a deal in principle, sources told The Guardian it was only three pages long and not legally binding. Now, Brussels is expected to call for new negotiations, believing Trump is using the tariff threat to pressure the bloc for better terms. Trump has previously called the EU “nastier” than China in trade matters. The UK’s recent trade agreement with the US took seven weeks to be formally registered. That deal reduced car export tariffs but left out key pledges on British steel. Creating a formal, legal version of the EU deal could face similar delays and complications. The announcement ends a week of mixed signals from Trump. On Monday, he extended talks with the EU until 1 August. Then on Tuesday, he said the bloc would “probably” get a letter setting new tariffs within 48 hours.

In letters posted to his social media platform, Truth Social, Trump revealed that a 30% tariff will apply to goods imported from both the European Union and Mexico starting 1 August. The decision surprised many, as earlier reports had suggested the rate could be closer to 10%.

'Unfortunately, far from Reciprocal': Donald Trump slaps 30% tariffs on goods from the EU and Mexico

The German government on Tuesday (July 8) accused the Chinese military of using a laser deployment to target an aircraft involved in an EU-backed Red Sea mission. Reportedly, the aircraft was participating in the EU's Operation ASPIDES.The mission was aimed at a defensive maritime security operation to protect international shipping in the Red Sea, the Indian Ocean, and the Gulf against Houthi attacks."The Chinese military has targeted a German aircraft in the EU operation ASPIDES with a laser deployment. The endangerment of German personnel &amp; disruption of the operation are completely unacceptable," the German foreign office said in a post on X.Following the attack, the German foreign office summoned the Chinese ambassador regarding this."The Chinese ambassador was summoned to the Foreign Office today regarding this matter," the ministry added.However, Germany has not disclosed the exact timings of the incident. This comes amid growing European unease over China's expanding military footprint and its influence on strategic infrastructure and technologies across the EU.<h2>What was the mission about?</h2>The Aspides EU military operation began in February 2024 to protect vessels against attacks by Yemen's Houthi militants in the southern Red Sea, with the motive to ensure ease in international shipping.Germany, Belgium, Estonia, Finland, France, Greece, Italy, Latvia, the Netherlands, and Sweden contribute to the EU mission.According to German newspaper Der Spiegel, up to 700 German armed forces personnel were participating in the EU-led mission to prepare for possible Houthi attacks on key trade routes.Earlier this year, the US also carried out a bombing campaign against the Houthis to protect freedom of international shipping in the Red Sea.Yemen's Iran-aligned Houthis on Monday said that a cargo ship they struck with gunfire, rockets, and explosive-laden remote-controlled boats had sunk in the Red Sea.Later, two crew members of the Greek-owned bulk carrier ship Eternity C were killed in an attack by sea drones and speedboats off Yemen, Liberia’s delegation told a meeting of the UN’s International Maritime Organisation.The Houthis carried out an hours-long attack targeting the cargo ship in the Red Sea, according to the authorities. &nbsp;

Germany has not disclosed the exact timings of the incident. This comes amid growing European unease over China's expanding military footprint and its influence on strategic infrastructure and technologies across the EU.

The German government on Tuesday (July 8) accused the Chinese military of using a laser deployment to target an aircraft involved in an EU-backed Red Sea mission. Reportedly, the aircraft was participating in the EU's Operation ASPIDES. The mission was aimed at a defensive maritime security operation to protect international shipping in the Red Sea, the Indian Ocean, and the Gulf against Houthi attacks. "The Chinese military has targeted a German aircraft in the EU operation ASPIDES with a laser deployment. The endangerment of German personnel & disruption of the operation are completely unacceptable," the German foreign office said in a post on X. Following the attack, the German foreign office summoned the Chinese ambassador regarding this. "The Chinese ambassador was summoned to the Foreign Office today regarding this matter," the ministry added. However, Germany has not disclosed the exact timings of the incident. This comes amid growing European unease over China's expanding military footprint and its influence on strategic infrastructure and technologies across the EU. What was the mission about? The Aspides EU military operation began in February 2024 to protect vessels against attacks by Yemen's Houthi militants in the southern Red Sea, with the motive to ensure ease in international shipping. Germany, Belgium, Estonia, Finland, France, Greece, Italy, Latvia, the Netherlands, and Sweden contribute to the EU mission. According to German newspaper Der Spiegel, up to 700 German armed forces personnel were participating in the EU-led mission to prepare for possible Houthi attacks on key trade routes. Earlier this year, the US also carried out a bombing campaign against the Houthis to protect freedom of international shipping in the Red Sea. Yemen's Iran-aligned Houthis on Monday said that a cargo ship they struck with gunfire, rockets, and explosive-laden remote-controlled boats had sunk in the Red Sea. Later, two crew members of the Greek-owned bulk carrier ship Eternity C were killed in an attack by sea drones and speedboats off Yemen, Liberia’s delegation told a meeting of the UN’s International Maritime Organisation. The Houthis carried out an hours-long attack targeting the cargo ship in the Red Sea, according to the authorities.

Germany has not disclosed the exact timings of the incident. This comes amid growing European unease over China's expanding military footprint and its influence on strategic infrastructure and technologies across the EU.

Laser attack in Red Sea? Germany accuses China of targeting aircraft during EU mission - Here's what we know

The European Union has so far avoided receiving a formal letter from the United States threatening sharply higher tariffs on its goods, even as President Donald Trump moves ahead with plans to impose new duties on other major trading partners starting 1 August, according to EU sources quoted by Reuters.<h2>Trump targets global partners with new tariff wave</h2>President Trump has begun notifying a broad range of trading partners, from Japan and South Korea to Myanmar, of steep new tariffs on goods they sell into the United States. The measures, set to take effect on 1 August, mark a renewed effort to pressure allies into making what Trump calls fairer trade deals.While Japan and South Korea have confirmed receiving letters outlining 25 per cent tariffs on their goods, EU sources familiar with the matter told Reuters on Monday that Brussels has not been sent such a letter.<h2>EU seeks exemptions from baseline 10% levy</h2>Instead, European officials are working urgently to secure exemptions from a proposed US baseline tariff rate of 10 per cent on certain categories of goods. As per Reuters, sources said discussions with the Trump administration are focused on avoiding the worst-case tariff outcome while offering targeted concessions.&nbsp;Three EU sources told Reuters that potential compromises could include accepting limited US tariffs of around 10 per cent on aircraft and parts, some medical equipment, and certain spirits in a broader deal.<h2>Talks may benefit EU carmakers</h2>According to Reuters, two sources also said the EU is examining an arrangement that would allow European automakers to increase the volume of EU-built cars imported at rates below the current 25 per cent tariff, in exchange for maintaining or expanding production in the United States.&nbsp;Such an arrangement would benefit German carmakers in particular, including BMW, Mercedes-Benz, and Volkswagen, which already operate large production facilities in the US. By boosting American production, these firms could secure better access for European-built models.<h2>EU weighs concessions versus tariff risk</h2>The European Commission, which leads trade negotiations for the bloc’s 27 member states, has warned that Brussels may have to choose between accepting a narrower, less balanced deal and facing even greater uncertainty over potential tariffs.&nbsp;According to Reuters, the Commission briefed EU envoys late on Monday that although negotiations were making progress, there were no guarantees the Trump administration would not impose further tariffs or demand additional concessions in future.<h2>Existing tariffs already strain trade ties</h2>The threat of new tariffs comes on top of existing measures that have strained transatlantic trade relations. As per Reuters, the EU already faces 50 per cent US tariffs on its steel and aluminium exports, 25 per cent on cars and car parts, and 10 per cent on most other goods.&nbsp;The United States is also examining possible new tariffs on pharmaceuticals and semiconductors, raising the stakes for European exporters in strategically important sectors.<h2>Critical test for EU–US trade relations</h2>The latest developments underscore the delicate balancing act for EU negotiators as they try to avoid a full-scale trade conflict with Washington while safeguarding European industries. Despite initial hopes for a broader, more balanced trade agreement, EU officials acknowledge they may have to make targeted concessions to head off steeper tariffs and bring some stability to exporters facing an increasingly protectionist US trade policy under Trump.&nbsp;As the 1 August deadline for new tariffs approaches, Brussels faces mounting pressure to finalise any deal that can protect European businesses already grappling with higher costs, disrupted supply chains and geopolitical uncertainty. &nbsp;

While the EU has yet to receive a formal US tariff letter, Brussels is negotiating targeted concessions to avoid steep duties on cars, aircraft, and key exports, as Trump’s aggressive trade push reshapes transatlantic economic ties.

The European Union has so far avoided receiving a formal letter from the United States threatening sharply higher tariffs on its goods, even as President Donald Trump moves ahead with plans to impose new duties on other major trading partners starting 1 August, according to EU sources quoted by Reuters. Trump targets global partners with new tariff wave President Trump has begun notifying a broad range of trading partners, from Japan and South Korea to Myanmar, of steep new tariffs on goods they sell into the United States. The measures, set to take effect on 1 August, mark a renewed effort to pressure allies into making what Trump calls fairer trade deals. While Japan and South Korea have confirmed receiving letters outlining 25 per cent tariffs on their goods, EU sources familiar with the matter told Reuters on Monday that Brussels has not been sent such a letter. EU seeks exemptions from baseline 10% levy Instead, European officials are working urgently to secure exemptions from a proposed US baseline tariff rate of 10 per cent on certain categories of goods. As per Reuters, sources said discussions with the Trump administration are focused on avoiding the worst-case tariff outcome while offering targeted concessions. Three EU sources told Reuters that potential compromises could include accepting limited US tariffs of around 10 per cent on aircraft and parts, some medical equipment, and certain spirits in a broader deal. Talks may benefit EU carmakers According to Reuters, two sources also said the EU is examining an arrangement that would allow European automakers to increase the volume of EU-built cars imported at rates below the current 25 per cent tariff, in exchange for maintaining or expanding production in the United States. Such an arrangement would benefit German carmakers in particular, including BMW, Mercedes-Benz, and Volkswagen, which already operate large production facilities in the US. By boosting American production, these firms could secure better access for European-built models. EU weighs concessions versus tariff risk The European Commission, which leads trade negotiations for the bloc’s 27 member states, has warned that Brussels may have to choose between accepting a narrower, less balanced deal and facing even greater uncertainty over potential tariffs. According to Reuters, the Commission briefed EU envoys late on Monday that although negotiations were making progress, there were no guarantees the Trump administration would not impose further tariffs or demand additional concessions in future. Existing tariffs already strain trade ties The threat of new tariffs comes on top of existing measures that have strained transatlantic trade relations. As per Reuters, the EU already faces 50 per cent US tariffs on its steel and aluminium exports, 25 per cent on cars and car parts, and 10 per cent on most other goods. The United States is also examining possible new tariffs on pharmaceuticals and semiconductors, raising the stakes for European exporters in strategically important sectors. Critical test for EU–US trade relations The latest developments underscore the delicate balancing act for EU negotiators as they try to avoid a full-scale trade conflict with Washington while safeguarding European industries. Despite initial hopes for a broader, more balanced trade agreement, EU officials acknowledge they may have to make targeted concessions to head off steeper tariffs and bring some stability to exporters facing an increasingly protectionist US trade policy under Trump. As the 1 August deadline for new tariffs approaches, Brussels faces mounting pressure to finalise any deal that can protect European businesses already grappling with higher costs, disrupted supply chains and geopolitical uncertainty.

The EU is racing to secure exemptions from looming US tariffs ahead of Trump’s 1 August deadline, as Brussels navigates delicate trade talks to protect key industries.

EU avoids US tariff letter, eyes concessions in talks, sources say

France’s finance minister has issued a stark warning that the European Union could face sharply higher US tariffs within days if negotiators fail to strike a deal with Washington, underscoring rising transatlantic trade tensions that risk hurting European industry.&nbsp;Speaking at an economic forum in Aix-en-Provence on Saturday, French Finance Minister Eric Lombard said he hoped talks between EU and US officials taking place over the weekend would succeed in averting the threatened tariff hikes before a critical July 9 deadline “On tariffs, it could all be decided this weekend,” Lombard said, as quoted by AFP. “If not, Europe will undoubtedly have to respond more vigorously to restore the balance.”<h2>Steep tariff snapback deadline</h2>According to AFP reporting, if no agreement is reached by Wednesday next week, higher levies on European exports to the US will automatically come back into force. The default tariff on EU imports is set to double to 20 per cent or even higher, with US President Donald Trump at one point threatening duties as high as 50 per cent. Talks between Brussels and Washington this weekend are seen as a last-ditch effort to avoid a trade escalation that could hit European exporters hard at a time of already slowing economic growth in the eurozone.&nbsp;European Commission President Ursula von der Leyen said on Thursday that Brussels was aiming for an “agreement in principle,” though she cautioned that even such a deal would require further negotiations to finalise the details, AFP reported. However, the Commission has also warned that even with an agreement, there may still be an imbalance in trade measures between the EU and the US.<h2>France vows to defend industry</h2>At the Aix-en-Provence forum, Lombard warned that Europe must be prepared to defend its industrial base not just from US tariffs but also from China’s industrial overcapacity. “It is essential to protect our industry from the US and China,” he said, according to AFP.&nbsp;Using stark imagery, Lombard likened the global trade environment to a playground where rules were being upended by aggressive economic powers. “Imagine the world as a playground where everyone is playing… and following the rules,” he said. “And then three bullies come along and don’t follow any rules, they knock over the game tables and push around the children who were playing nicely. That’s the world of predators,” he added, naming the US, Russia, and China as examples.<h2>Concerns about Chinese overcapacity</h2>Lombard also argued that existing tariffs on sectors like steel and automotive goods were not enough to counter China’s industrial strategy.“We need to do it across all our industrial sectors,” he said, warning that China’s policy of maintaining production capacity exceeding 50 per cent of global market share in key industrial segments risked “destroying our industry.”<h2>High-stakes test for Brussels</h2>The tariff deadline comes at a politically sensitive moment for Brussels. European leaders have been under pressure to show they can defend EU economic interests while avoiding a costly trade war with Washington, even as relations with Beijing grow more strained over issues such as green technology competition and human rights.&nbsp;A failure to strike a deal would risk exposing European manufacturers to steep US tariffs just as they face growing competition from China’s subsidised industries. As reported by AFP, EU negotiators are racing to finalise an agreement in the coming days in order to avert the tariff snapback and head off another transatlantic trade conflict.&nbsp;(With inputs from the agencies)&nbsp;

Talks over the weekend are crucial to avoid a July 9 deadline. If no deal is reached, tariffs on EU exports to the US might double, impacting economies already strained. 

France’s finance minister has issued a stark warning that the European Union could face sharply higher US tariffs within days if negotiators fail to strike a deal with Washington, underscoring rising transatlantic trade tensions that risk hurting European industry. Speaking at an economic forum in Aix-en-Provence on Saturday, French Finance Minister Eric Lombard said he hoped talks between EU and US officials taking place over the weekend would succeed in averting the threatened tariff hikes before a critical July 9 deadline “On tariffs, it could all be decided this weekend,” Lombard said, as quoted by AFP. “If not, Europe will undoubtedly have to respond more vigorously to restore the balance.” Steep tariff snapback deadline According to AFP reporting, if no agreement is reached by Wednesday next week, higher levies on European exports to the US will automatically come back into force. The default tariff on EU imports is set to double to 20 per cent or even higher, with US President Donald Trump at one point threatening duties as high as 50 per cent. Talks between Brussels and Washington this weekend are seen as a last-ditch effort to avoid a trade escalation that could hit European exporters hard at a time of already slowing economic growth in the eurozone. European Commission President Ursula von der Leyen said on Thursday that Brussels was aiming for an “agreement in principle,” though she cautioned that even such a deal would require further negotiations to finalise the details, AFP reported. However, the Commission has also warned that even with an agreement, there may still be an imbalance in trade measures between the EU and the US. France vows to defend industry At the Aix-en-Provence forum, Lombard warned that Europe must be prepared to defend its industrial base not just from US tariffs but also from China’s industrial overcapacity. “It is essential to protect our industry from the US and China,” he said, according to AFP. Using stark imagery, Lombard likened the global trade environment to a playground where rules were being upended by aggressive economic powers. “Imagine the world as a playground where everyone is playing… and following the rules,” he said. “And then three bullies come along and don’t follow any rules, they knock over the game tables and push around the children who were playing nicely. That’s the world of predators,” he added, naming the US, Russia, and China as examples. Concerns about Chinese overcapacity Lombard also argued that existing tariffs on sectors like steel and automotive goods were not enough to counter China’s industrial strategy. “We need to do it across all our industrial sectors,” he said, warning that China’s policy of maintaining production capacity exceeding 50 per cent of global market share in key industrial segments risked “destroying our industry.” High-stakes test for Brussels The tariff deadline comes at a politically sensitive moment for Brussels. European leaders have been under pressure to show they can defend EU economic interests while avoiding a costly trade war with Washington, even as relations with Beijing grow more strained over issues such as green technology competition and human rights. A failure to strike a deal would risk exposing European manufacturers to steep US tariffs just as they face growing competition from China’s subsidised industries. As reported by AFP, EU negotiators are racing to finalise an agreement in the coming days in order to avert the tariff snapback and head off another transatlantic trade conflict. (With inputs from the agencies)

France hopes that the EU could face significant US tariffs imminently if negotiators fail to reach an agreement with Washington, highlighting escalating trade tensions that threaten European industries.

France presses for EU–US tariff deal before deadline

The European Union is preparing to enforce its landmark AI Act, billed as the world’s first comprehensive set of rules for artificial intelligence. With parts of the regulation set to take effect on August 2, companies and political leaders are warning that the bloc may be moving too quickly and urging Brussels to consider a delay.&nbsp;As per Reuters, big US tech firms like Alphabet (Google’s parent) and Meta, as well as European companies including France’s Mistral and Dutch chip equipment giant ASML, have asked the European Commission to postpone enforcement of the law by years.<h2>What is the EU AI Act?</h2>Passed in 2024 after intense negotiations between EU member states, the AI Act aims to make artificial intelligence more transparent, safe, and accountable. It categorises AI systems by risk—from minimal to unacceptable and imposes tighter controls on high-risk and so-called general-purpose AI (GPAI) models.&nbsp;According to Reuters, these GPAI rules will apply to foundation models built by companies like Google, OpenAI and Mistral. The law includes requirements on documentation, transparency and risk management designed to ensure such powerful systems respect European values and consumer rights.<h2>What’s significant about the August 2 deadline?</h2>The EU AI Act is being rolled out in phases over several years, but August 2 is a key early deadline.Reuters reports that, from that date, companies building GPAI systems will have to:<ul><li>Produce detailed technical documentation.</li><li>Demonstrate compliance with EU copyright laws.</li><li>Summarise the content used for training their algorithms.</li><li>Test for bias, toxicity and robustness before launch.</li></ul>For models considered high-impact or posing systemic risks, even stricter obligations will apply. These include adversarial testing, formal risk assessments, incident reporting to the European Commission and disclosures about energy efficiency.<h2>Why do companies want a delay?</h2>Companies say they’re facing both high costs and legal uncertainty. As reported by Reuters, the core complaint is that the EU has yet to publish clear guidelines explaining exactly how firms should comply.A key guidance document, the AI Code of Practice, was supposed to be released on May 2 but is delayed. Without it, companies argue they don’t know precisely what standards they’ll be held to.&nbsp;In an open letter signed by 45 European companies and quoted by Reuters, they called for a two-year “clock-stop” to address this uncertainty and to simplify the new rules. The letter warns that the Act risks stifling European innovation, especially among smaller AI firms with fewer resources than their US counterparts.<h2>What are politicians saying?</h2>According to Reuters, calls for a pause aren’t limited to the private sector. Swedish Prime Minister Ulf Kristersson has described the AI rules as “confusing” and has asked the European Union to halt enforcement temporarily.&nbsp;Tech lobbying group CCIA Europe has also weighed in, calling for an urgent “stop-the-clock” measure to provide legal certainty while the necessary standards remain unavailable or incomplete<h2>Will the EU agree to postpone?</h2>For now, the European Commission has not committed to delaying the August deadline. Reuters reports that Brussels has declined to comment directly on any possible postponement.However, EU tech chief Henna Virkkunen said on Wednesday that the AI Code of Practice, the long-awaited guidance document will be published before August.&nbsp;Yet with less than a month to go, many companies say time is running out. As per Reuters, industry leaders warn that pushing forward without clear standards could lead to confusion, legal risk, and a blow to Europe’s ambition to lead in safe, trustworthy AI development. The debate over the AI Act’s timing highlights a broader challenge for regulators worldwide: balancing the need to rein in powerful new technologies without throttling innovation or leaving companies in regulatory limbo.&nbsp;(With inputs from the agencies)&nbsp;

As the EU prepares to enforce its AI Act on August 2, companies like Google, Meta, and ASML warn of confusion and rising costs amid missing guidance, pushing for a two-year delay.

The European Union is preparing to enforce its landmark AI Act, billed as the world’s first comprehensive set of rules for artificial intelligence. With parts of the regulation set to take effect on August 2, companies and political leaders are warning that the bloc may be moving too quickly and urging Brussels to consider a delay. As per Reuters, big US tech firms like Alphabet (Google’s parent) and Meta, as well as European companies including France’s Mistral and Dutch chip equipment giant ASML, have asked the European Commission to postpone enforcement of the law by years. What is the EU AI Act? Passed in 2024 after intense negotiations between EU member states, the AI Act aims to make artificial intelligence more transparent, safe, and accountable. It categorises AI systems by risk—from minimal to unacceptable and imposes tighter controls on high-risk and so-called general-purpose AI (GPAI) models. According to Reuters, these GPAI rules will apply to foundation models built by companies like Google, OpenAI and Mistral. The law includes requirements on documentation, transparency and risk management designed to ensure such powerful systems respect European values and consumer rights. What’s significant about the August 2 deadline? The EU AI Act is being rolled out in phases over several years, but August 2 is a key early deadline. Reuters reports that, from that date, companies building GPAI systems will have to: Produce detailed technical documentation. Demonstrate compliance with EU copyright laws. Summarise the content used for training their algorithms. Test for bias, toxicity and robustness before launch. For models considered high-impact or posing systemic risks, even stricter obligations will apply. These include adversarial testing, formal risk assessments, incident reporting to the European Commission and disclosures about energy efficiency. Why do companies want a delay? Companies say they’re facing both high costs and legal uncertainty. As reported by Reuters, the core complaint is that the EU has yet to publish clear guidelines explaining exactly how firms should comply. A key guidance document, the AI Code of Practice, was supposed to be released on May 2 but is delayed. Without it, companies argue they don’t know precisely what standards they’ll be held to. In an open letter signed by 45 European companies and quoted by Reuters, they called for a two-year “clock-stop” to address this uncertainty and to simplify the new rules. The letter warns that the Act risks stifling European innovation, especially among smaller AI firms with fewer resources than their US counterparts. What are politicians saying? According to Reuters, calls for a pause aren’t limited to the private sector. Swedish Prime Minister Ulf Kristersson has described the AI rules as “confusing” and has asked the European Union to halt enforcement temporarily. Tech lobbying group CCIA Europe has also weighed in, calling for an urgent “stop-the-clock” measure to provide legal certainty while the necessary standards remain unavailable or incomplete Will the EU agree to postpone? For now, the European Commission has not committed to delaying the August deadline. Reuters reports that Brussels has declined to comment directly on any possible postponement. However, EU tech chief Henna Virkkunen said on Wednesday that the AI Code of Practice, the long-awaited guidance document will be published before August. Yet with less than a month to go, many companies say time is running out. As per Reuters, industry leaders warn that pushing forward without clear standards could lead to confusion, legal risk, and a blow to Europe’s ambition to lead in safe, trustworthy AI development. The debate over the AI Act’s timing highlights a broader challenge for regulators worldwide: balancing the need to rein in powerful new technologies without throttling innovation or leaving companies in regulatory limbo. (With inputs from the agencies)

Big tech and EU firms urge Brussels to delay the AI Act’s August rollout, citing lack of clarity and high compliance burdens.

What is the EU AI Act and will it be delayed before the August deadline?

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