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Morning opening: EU scrambles to respond to Trump's 'prohibitive' tariffs threat
Jakub Krupa
EU ministers are meeting this morning for urgent talks after the US president, Donald Trump, threatened to impose 30% tariffs on the bloc – despite what they believed were promising talks with the US administration on how to avoid them.
But in a letter issued over the weekend, Trump said:
“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers …
Our relationship has been, unfortunately, far from Reciprocal.”
Over the weekend, EU leaders, including 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 said the EU should be ready for a trade war and to stand up to the US president, who was only last week expected to approve a 10% tariff agreement in principle with the bloc.
But the Italian prime minister, Giorgia Meloni, who enjoys good relations with Trump, said in a statement she trusted “a fair agreement” could be reached. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” she said.
The EU trade commissioner, Maroš Šefčovič, was far more blunt this morning.
Arriving for talks with EU foreign and trade ministers, he said:
Let’s be honest, the idea of 30% tariff rate is effectively prohibitive to the mutual trade.
He added that such tariffs would make it “almost impossible to continue the trading as we are used to,” with supply chains on both sides of the Atlantic “heavily affected” by the change.
Šefčovič said the bloc noted Trump’s letter with “regret and disappointment,” but promised to engage further with his US counterparts on Monday to try to find a way out of this crisis, saying he “cannot imagine walking away without genuing effort.”
“I will be discussing with ministers the next steps for the upcoming weeks.
I see these focused on four areas: negotiations, rebalancing measures, engagement with like minded partners, and diversification of our trade.”
Danish foreign minister Lars Løkke Rasmussen warned:
Our trade relations with the US are on a critical juncture.
Let’s see what the day brings here.
We are also expecting significant updates on Ukraine, with Trump promising a “major statement” on Russia when Nato secretary general Mark Rutte visits Washington today, which is expected to include 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 is also in Washington.
It’s Monday, 14 July 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
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EU reacts to Trump threat - snap analysis
Lisa O'Carroll
A show of unity is expected publicly with German chancellor Friedrich Merz saying he will work “intensively” with Emmanuel Macron, Ursula von der Leyen and Trump to try and rescue the agreement in principle that was put on Trump’s desk last week involving tariffs of 10%.
Over the past three months Germany has urged a quick UK style deal while Macron has favoured a tougher stance to face down Trump, given average tariffs before his presidency were 2.5% and they breach WTO rules.
The EU’s continued and future reliance on the US for security and defence is influencing the position with member states accepting a trade off between business and arms and military intelligence Trump provides.
On Sunday, Merz told the ARD broadcaster that a 30% tariff would “hit our exporters to the core” while the German car industry called for a quick deal.
He said he agreed with Macron, who said on Saturday the EU had to “step up the preparation of credible countermeasures” in the event of no deal before 1 August.
In his statement Saturday, Macron also urged the European Commission – which negotiates on behalf of all EU countries – to “resolutely defend European interests”.
Italy, one of the three countries along with Germany and Ireland, that sell more to the US than import said a trade war would be a disaster.
Italian prime minister Giorgia Meloni said in a statement 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 said, a line underlined by Italy’s foreign minister Antonio Tajani today.
“Tariffs hurt every one, starting with the United States,” he said.
If stock markets fall that puts at risk the pensions and the savings of the Americans.
Trump's Ukraine envoy arrives in Kyiv
In the last hour, Trump’s Ukraine envoy Keith Kellogg arrived in Kyiv for talks on security and sanctions against Russia.
The head of the Ukrainian presidential administration, Andriy Yermak, already signalled that something was afoot over the weekend, posting on Sunday a side-eye emoji picture suggesting an announcement was coming.
After Trump confirmed his intentions to send more Patriot missiles to Ukraine, Yermak added more detail disclosing Kellogg will take part in discussions on “defence, strengthening security, weapons, sanctions, protecting our people.”
Ukrainian president Volodymyr Zelenskyy separately said that Kellogg will be given a military briefing and meet with the heads of the Security Service of Ukraine and intelligence services.
Trump promises 'major statement' on Russia today
Speaking overnight, the US president, Donald Trump, said he would be making “a major statement” on Russia on Monday.
We do not know all the details of what he will announce in terms of support for Ukraine, but 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 said, adding it was good “business for us.”
The announcement comes just over a week after a brief pause in the US military aid deliveries for Ukraine, and days after Trump lost patience with Russian president Vladimir Putin accusing him of talking “bullshit.”
Separately, US lawmakers are working on a bipartisan bill that would impose tough sanctions on Russia.
Nato secretary general, Mark Rutte, is in Washington on Monday so expect him to be involved in all talks on both issues.
Morning opening: EU scrambles to respond to Trump's 'prohibitive' tariffs threat
Jakub Krupa
EU ministers are meeting this morning for urgent talks after the US president, Donald Trump, threatened to impose 30% tariffs on the bloc – despite what they believed were promising talks with the US administration on how to avoid them.
But in a letter issued over the weekend, Trump said:
“We have had years to discuss our Trading Relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, Trade Deficits, engendered by your Tariff, and Non-Tariff, Policies, and Trade Barriers …
Our relationship has been, unfortunately, far from Reciprocal.”
Over the weekend, EU leaders, including 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 said the EU should be ready for a trade war and to stand up to the US president, who was only last week expected to approve a 10% tariff agreement in principle with the bloc.
But the Italian prime minister, Giorgia Meloni, who enjoys good relations with Trump, said in a statement she trusted “a fair agreement” could be reached. “It would make no sense to trigger a trade war between the two sides of the Atlantic,” she said.
The EU trade commissioner, Maroš Šefčovič, was far more blunt this morning.
Arriving for talks with EU foreign and trade ministers, he said:
Let’s be honest, the idea of 30% tariff rate is effectively prohibitive to the mutual trade.
He added that such tariffs would make it “almost impossible to continue the trading as we are used to,” with supply chains on both sides of the Atlantic “heavily affected” by the change.
Šefčovič said the bloc noted Trump’s letter with “regret and disappointment,” but promised to engage further with his US counterparts on Monday to try to find a way out of this crisis, saying he “cannot imagine walking away without genuing effort.”
“I will be discussing with ministers the next steps for the upcoming weeks.
I see these focused on four areas: negotiations, rebalancing measures, engagement with like minded partners, and diversification of our trade.”
Danish foreign minister Lars Løkke Rasmussen warned:
Our trade relations with the US are on a critical juncture.
Let’s see what the day brings here.
We are also expecting significant updates on Ukraine, with Trump promising a “major statement” on Russia when Nato secretary general Mark Rutte visits Washington today, which is expected to include 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 is also in Washington.
It’s Monday, 14 July 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
