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Back to the EU-US trade talks for a moment:
The EU is briefing reporters on the latest progress this morning, stressing the 15% tariff that European Union goods face when entering the United States is all-inclusive, incorporating the Most Favoured Nation Rate, unlike some other countries with deals with the US, Reuters reported.
The two sides were still working on a joint statement covering some of the details of the deal and how it is to be implemented, officials said, adding that despite “pretty advanced” talks, they couldn’t advise as to when it will be signed off by both sides.
The officials added that it would take some time “before we fully nail down the list of essential products” that are exempt from US tariffs.
The EU also repeated its previous narrative that a deal is better than no deal, warning that a failure to find an agreement could lead to divisions wthin the bloc and high tariffs on both sides, hitting businesses even more.
We will bring you more on this shortly.
The Netherlands to buy €500m-worth of US weapons for Ukraine
Meanwhile, the Netherlands is the first country to commit €500m to spend on US weapons for Ukraine under a new framework deal agreed by US president Donald Trump and Nato secretary general Mark Rutte last month.
On Monday night, Dutch prime minister Dick Schoof said the new weapons for Ukraine were “badly needed” as “Ukraine is still fighting every day to defend itself against Russian aggression, such as large-scale drone attacks.”
In doing so, Ukraine is also fighting for freedom and security in Europe.
Posting a clip of his interview for Dutch TV NPO2, the country’s defence minister Ruben Brekelmans said the Netherlands was “taking the lead in supplying military equipment from American stockpiles,” arguing that “by steadfastly supporting Ukraine, we increase the pressure on Russia to negotiate.”
On Monday night, Ukrainian president Volodymyr Zelenskyy confirmed he spoke with Schoof on the phone, and welcomed the contribution by saying “this will definitely help protect the lives of our people.”
Diageo warns of costly impact of US tariffs
Lisa O’Carroll
Diageo, maker of Guinness, Smirnoff vodka and Johnnie Walker whiskey, has said Donald Trump’s tariffs on wine and spirits will reduce its profits by €173m (£150m).
The world’s biggest spirits maker is the latest company in the EU to reveal the high cost of the US president’s new tariff trade wars.
On Tuesday it forecast flat 2026 sales, raised its estimate of the impact from tariffs, and hiked its cost-savings target by about €108m.
The EU had hoped wines and spirits would remain duty free after Trump and European Commission president sealed the tariff deal at Trump’s Scottish golf course eight days ago but negotiations are ongoing.
Sources say talks on spirits are more advanced than for wine.
Morning opening: Increase the pressure on Russia, says Ukraine
Jakub Krupa
At least one person died, and 12 were injured after another round of Russian attacks on Ukraine overnight, with Ukrainian president Volodymyr Zelenskyy accusing Russia of trying to “intimidate frontline cities and communities” by attacking civilian targets.
Zelenskyy’s most senior aide, Andriy Yermak, was more blunt:
“Their war is with the civilian railway, trains, residential buildings. Ukraine strikes at military targets, Russia – whatever it can reach.”
But responding to the attacks, Zelenskyy once again called on the US and the EU to turn up the pressure on Russia by fast-tracking much-promised sanctions and secondary sanctions on countries supporting its war.
“The world is now seeing that sanctions against Russia and secondary sanctions against all those who help it profit from oil can work if they are strong enough. So the pressure must be increased, and it will certainly work for peace,” he said.
His comments come a day before US special envoy Steve Witkoff is expected in Moscow for another round of high-level talks with Russia, possibly with President Vladimir Putin.
Elsewhere, I will be looking at the latest from the European Commission on the EU-US tariff deal, and will bring you all other key updates from across Europe here.
It’s Tuesday, 5 August 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
