The Observer view on Trump’s tariffs: Starmer faces his greatest test as prime minister | Observer editorial

The EU has decided not to impose retaliatory tariffs on American bourbon and other US whiskeys, following lobbying efforts from whiskey-making Ireland and wine-producing countries like Italy and France. This decision was made amidst concerns that their alcohol industries would suffer in the midst of a global trade war, particularly due to the economic impact of Donald Trump's trade policies. This move provides some relief for drink makers in the US amid the ongoing economic...

The European Commission plans to propose retaliatory measures against US tariffs, aiming to negotiate but facing worsening trade tensions initiated by President Trump. Brussels has reduced its countermeasures on US goods following lobbying by member states, with products like bourbon and wine removed to protect food and drinks industries. Talks with the US have been fruitless so far, with the EU rejecting complaints beyond tariffs, and hoping US economic pressure may lead to a change...

The US will move its troops from a critical base in Poland for supplying arms to Ukraine, citing cost-cutting, while Polish politicians reassure that US interest in Nato's eastern flank remains strong. The decision, coordinated with allies, comes amid concerns about Trump's Russia-friendly stance, with Germany taking over some air defence responsibility. Despite reassurances from Polish President Duda and Defence Minister Kosiniak-Kamysz, the move reflects a broader US strategy to reduce its military footprint in...

European Commission president Ursula von der Leyen has called for a "negotiated resolution" between the EU and China to ensure stability and predictability in the global economy amidst US tariffs. The two leaders discussed tracking trade diversion and addressing potential impacts, emphasizing the need for a strong reformed trading system. China's trade surplus and tensions with the EU highlight the importance of finding common ground and meeting halfway in their relationship to avoid further escalation...

This article discusses the impact of Donald Trump's trade war on European markets, with significant losses seen in Germany, France, and Poland. The EU is planning retaliation measures and seeking negotiations to soften the blow on the economy, with the possibility of ECB rate cuts and fiscal support. Additionally, central Europe is facing border closures due to a foot-and-mouth disease outbreak, prompting countries like Hungary, Slovakia, and Austria to take preventive measures. Full Article

Donald Trump's decision to impose varying tariff rates on countries has created uncertainty for exporters to the US. Companies may attempt to exploit differences in tariffs by reshuffling supply chains, but the complexity and unpredictability of enforcement pose challenges. Rules of origin are crucial in determining tariff rates, with exporters needing to prove the source of their goods to benefit from lower rates. However, navigating these rules and potentially shifting production to lower-tariff countries may...