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

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

At the moment, our reporters convey you in control on a busy weekend within the EU-US commerce stand-off as Brussels shrugged off Donald Trump’s newest menace, and Laura joins our tech correspondent to report on new pointers to guard youngsters on-line being unveiled at present.

Maintain fireplace

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

Context: The US president upped the stress on the EU on Saturday by announcing 30 per cent “reciprocal” tariffs from August 1. Months of negotiations between the US and the EU aimed toward securing a commerce deal have up to now solely resulted in elevating the tariff menace from the unique 20 per cent.

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

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

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

EU ambassadors met yesterday to be briefed on the talks, and have been largely supportive of the fee’s present method, in line with folks acquainted with the discussions.

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

However some governments are rising impatient with the passivity.

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

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

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

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

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

As ministers trickle in for at present’s assembly, count on public declarations that the EU is able to reply. However in personal, most will endorse the fee’s cautious strikes and pray the bond and inventory markets come to their assist.

Chart du jour: Disconnected

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

Verified

5 European international locations will begin testing a brand new age verification app to raised defend kids on-line, write Barbara Moens and Laura Dubois.

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

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

Denmark, France, Italy, Spain and Greece will participate within the pilot for the age verification app, in line with folks acquainted with the launch.

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

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

Virkkunen has been urging tech firms to voluntarily undertake measures to raised defend kids quite than look forward to governments to step in. “Platforms haven’t any excuse to be persevering with practices that put kids in danger”, Virkkunen mentioned.

What to observe at present

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

2. EU commerce ministers meet.

3. EU agriculture and fisheries ministers meet.

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