Brussels gives ground as Trump holds firm on 10% tariffs

SummaryBank of England governor Andrew Bailey urged the UK government to minimize the negative effects of Brexit by enhancing alignment with the EU, particularly in reducing non-tariff barriers in financial services to promote trade and economic growth. His comments followed Prime Minister Sir Keir Starmer's announcement of a "reset" deal with the EU aimed at cutting trade barriers. While acknowledging the challenges posed by Brexit, Bailey emphasized the benefits of increased openness in financial markets...

European countries are rapidly increasing their defense spending amid concerns that the U.S. may reduce weapon supplies, leading to a push for domestic arms manufacturing reliant on a robust steel industry. However, the EU faces challenges from global overcapacity and cheap steel imports, particularly from countries like Turkey and Egypt, exacerbated by U.S. tariffs and the need for compliance with strict emissions regulations. This situation threatens Europe's steel producers, essential for military supplies, raising fears...

SummaryMeetings between EU and US trade negotiators will proceed as planned next week, despite a US court ruling the legality of President Trump's tariff agenda. The EU is likely to maintain a 10 percent reciprocal tariff affecting around 70 percent of EU exports while also considering regulatory simplifications to accommodate US businesses. Experts caution that backing away from negotiations could escalate trade tensions, emphasizing the need to focus on resolving tariffs related to steel, aluminum,...

Germany's new economy minister, Katherina Reiche, emphasized the importance of the country's heavy industry for Europe's sovereignty, urging the European Commission to approve subsidies for energy-intensive sectors like chemicals and steel. With Germany facing stagnation and increased energy costs post-nuclear phase-out and the Ukraine conflict, Reiche highlighted the need for structural reforms and a €1 trillion investment plan. She also called for a balanced approach towards China while advocating for state aid approval to maintain...

SummaryThe Court of International Trade ruled that Donald Trump improperly used the International Emergency Economic Powers Act to impose tariffs, marking a significant challenge to his trade policy, although the section 232 tariffs on cars and steel remain unaffected. As negotiations intensify between the EU and Trump, the ruling presents an opportunity for the EU to assert itself against Trump's tactics, which often rely on unilateral concessions and market pressures. The ruling may lead to...

The UK military will unify cyber and electronic operations under a single command as part of a reorganisation announced by Defence Secretary John Healey, aimed at enhancing high-tech warfare capabilities. This initiative will be detailed in the upcoming strategic defence review, with over £1bn allocated for an AI-driven data analysis system to improve military intelligence, influenced by lessons from the Ukraine conflict. As NATO discussions intensify over defense spending targets, Healey emphasized Britain's commitment to...