Morning opening: EU scrambles to reply to Trump’s ‘prohibitive’ tariffs menace
Jakub Krupa
EU ministers are assembly this morning for pressing talks after the US president, Donald Trump, threatened to impose 30% tariffs on the bloc – regardless of what they believed had been promising talks with the US administration on tips on how to keep away from them.
However in a letter issued over the weekend, Trump stated:
“We’ve had years to debate our Buying and selling Relationship with The European Union, and now we have concluded we should transfer away from these long-term, massive, and chronic, Commerce Deficits, engendered by your Tariff, and Non-Tariff, Insurance policies, and Commerce Limitations …
Our relationship has been, sadly, removed from Reciprocal.”
Over the weekend, EU leaders, together with the French president, Emmanuel Macron, and the German chancellor, Friedrich Merz, led political reactions to the announcement.
As my colleague Lisa O’Carroll reported over the weekend, Macron stated the EU ought to be prepared for a commerce warfare and to face as much as the US president, who was solely final week anticipated to approve a ten% tariff settlement in precept with the bloc.
However the Italian prime minister, Giorgia Meloni, who enjoys good relations with Trump, stated in a press release she trusted “a fair agreement” could possibly be reached. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” she stated.
The EU commerce commissioner, Maroš Šefčovič, was way more blunt this morning.
Arriving for talks with EU overseas and commerce ministers, he stated:
Let’s be trustworthy, the concept of 30% tariff fee is successfully prohibitive to the mutual commerce.
He added that such tariffs would make it “almost impossible to continue the trading as we are used to,” with provide chains on either side of the Atlantic “heavily affected” by the change.
Šefčovič stated the bloc famous Trump’s letter with “regret and disappointment,” however promised to have interaction additional along with his US counterparts on Monday to attempt to discover a means out of this disaster, saying he “cannot imagine walking away without genuing effort.”
“I will likely be discussing with ministers the following steps for the upcoming weeks.
I see these targeted on 4 areas: negotiations, rebalancing measures, engagement with like minded companions, and diversification of our commerce.”
Danish overseas minister Lars Løkke Rasmussen warned:
Our commerce relations with the US are on a vital juncture.
Let’s see what the day brings right here.
We’re additionally anticipating important updates on Ukraine, with Trump promising a “major statement” on Russia when Nato secretary common Mark Rutte visits Washington as we speak, which is predicted to incorporate an announcement on much-awaited new Patriots missiles for Kyiv.
Trump’s Ukraine envoy Keith Kellogg is in Ukraine, and German defence minister Boris Pistorius can also be in Washington.
It’s Monday, 14 July 2025, it’s Jakub Krupa right here, and that is Europe Dwell.
Good morning.
Key occasions
European markets fall after Trump tariff menace
Graeme Wearden
Donald Trump’s menace to impose a 30% on European Union imports from subsequent month is weighing on European inventory markets this morning.
Most of Europe’s markets have dropped firstly of buying and selling, pulling the pan-European Stoxx 600 index down by 0.6%.
Germany’s DAX has dropped by 0.95%, whereas France’s CAC 40 has misplaced 0.8%, Italy’s FTSE MIB index is sort of 0.9% decrease, and Spain’s IBEX is off 0.7%.
Traders will likely be assessing the possibilities of the 2 sides reaching a deal by 1 August.
Observe enterprise stay:
EU reacts to Trump menace – snap evaluation
Lisa O’Carroll
A present of unity is predicted publicly with German chancellor Friedrich Merz saying he’ll work “intensively” with Emmanuel Macron, Ursula von der Leyen and Trump to attempt to rescue the settlement in precept that was placed on Trump’s desk final week involving tariffs of 10%.
Over the previous three months Germany has urged a fast UK fashion deal whereas Macron has favoured a harder stance to face down Trump, given common tariffs earlier than his presidency had been 2.5% and so they breach WTO guidelines.
The EU’s continued and future reliance on the US for safety and defence is influencing the place with member states accepting a commerce off between enterprise and arms and army intelligence Trump gives.
On Sunday, Merz advised the ARD broadcaster that a 30% tariff would “hit our exporters to the core” whereas the German automotive trade referred to as for a fast deal.
He stated he agreed with Macron, who stated on Saturday the EU needed to “step up the preparation of credible countermeasures” within the occasion of no deal earlier than 1 August.
In his assertion Saturday, Macron additionally urged the European Fee – which negotiates on behalf of all EU international locations – to “resolutely defend European interests”.
Italy, one of many three international locations together with Germany and Eire, that promote extra to the US than import stated a commerce warfare can be a catastrophe.
Italian prime minister Giorgia Meloni stated in a press release Sunday: “A trade war within the West would weaken us all in the face of the global challenges we are confronting together.
The EU sees the threat of €21bn package of countermeasures imposed on 1 August as leverage.
“Europe has the economic and financial strength to assert its position and reach a fair and sensible agreement,” she stated, a line underlined by Italy’s overseas minister Antonio Tajani as we speak.
“Tariffs hurt every one, starting with the United States,” he stated.
If inventory markets fall that places in danger the pensions and the financial savings of the Individuals.
Trump’s Ukraine envoy arrives in Kyiv
Within the final hour, Trump’s Ukraine envoy Keith Kellogg arrived in Kyiv for talks on safety and sanctions in opposition to Russia.
The top of the Ukrainian presidential administration, Andriy Yermak, already signalled that one thing was afoot over the weekend, posting on Sunday a side-eye emoji image suggesting an announcement was coming.
After Trump confirmed his intentions to ship extra Patriot missiles to Ukraine, Yermak added extra element disclosing Kellogg will participate in discussions on “defence, strengthening security, weapons, sanctions, protecting our people.”
Ukrainian president Volodymyr Zelenskyy individually stated that Kellogg will likely be given a army briefing and meet with the heads of the Safety Service of Ukraine and intelligence companies.
Trump guarantees ‘main assertion’ on Russia as we speak
Talking in a single day, the US president, Donald Trump, stated he can be making “a major statement” on Russia on Monday.
We have no idea all the main points of what he’ll announce by way of assist for Ukraine, however he confirmed that the US “will send them Patriots, which they desperately need.”
“We basically are going to send them various pieces of very sophisticated military and they’re going to pay us 100 percent for them,” he stated, including it was good “business for us.”
The announcement comes simply over per week after a short pause within the US army support deliveries for Ukraine, and days after Trump misplaced endurance with Russian president Vladimir Putin accusing him of speaking “bullshit.”
Individually, US lawmakers are engaged on a bipartisan invoice that might impose robust sanctions on Russia.
Nato secretary common, Mark Rutte, is in Washington on Monday so count on him to be concerned in all talks on each points.
Morning opening: EU scrambles to reply to Trump’s ‘prohibitive’ tariffs menace
Jakub Krupa
EU ministers are assembly this morning for pressing talks after the US president, Donald Trump, threatened to impose 30% tariffs on the bloc – regardless of what they believed had been promising talks with the US administration on tips on how to keep away from them.
However in a letter issued over the weekend, Trump stated:
“We’ve had years to debate our Buying and selling Relationship with The European Union, and now we have concluded we should transfer away from these long-term, massive, and chronic, Commerce Deficits, engendered by your Tariff, and Non-Tariff, Insurance policies, and Commerce Limitations …
Our relationship has been, sadly, removed from Reciprocal.”
Over the weekend, EU leaders, together with the French president, Emmanuel Macron, and the German chancellor, Friedrich Merz, led political reactions to the announcement.
As my colleague Lisa O’Carroll reported over the weekend, Macron stated the EU ought to be prepared for a commerce warfare and to face as much as the US president, who was solely final week anticipated to approve a ten% tariff settlement in precept with the bloc.
However the Italian prime minister, Giorgia Meloni, who enjoys good relations with Trump, stated in a press release she trusted “a fair agreement” could possibly be reached. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” she stated.
The EU commerce commissioner, Maroš Šefčovič, was way more blunt this morning.
Arriving for talks with EU overseas and commerce ministers, he stated:
Let’s be trustworthy, the concept of 30% tariff fee is successfully prohibitive to the mutual commerce.
He added that such tariffs would make it “almost impossible to continue the trading as we are used to,” with provide chains on either side of the Atlantic “heavily affected” by the change.
Šefčovič stated the bloc famous Trump’s letter with “regret and disappointment,” however promised to have interaction additional along with his US counterparts on Monday to attempt to discover a means out of this disaster, saying he “cannot imagine walking away without genuing effort.”
“I will likely be discussing with ministers the following steps for the upcoming weeks.
I see these targeted on 4 areas: negotiations, rebalancing measures, engagement with like minded companions, and diversification of our commerce.”
Danish overseas minister Lars Løkke Rasmussen warned:
Our commerce relations with the US are on a vital juncture.
Let’s see what the day brings right here.
We’re additionally anticipating important updates on Ukraine, with Trump promising a “major statement” on Russia when Nato secretary common Mark Rutte visits Washington as we speak, which is predicted to incorporate an announcement on much-awaited new Patriots missiles for Kyiv.
Trump’s Ukraine envoy Keith Kellogg is in Ukraine, and German defence minister Boris Pistorius can also be in Washington.
It’s Monday, 14 July 2025, it’s Jakub Krupa right here, and that is Europe Dwell.
Good morning.
