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    EU retaliates against Trump tariffs with €26bn ‘countermeasures’

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    The EU has announced it will impose trade “countermeasures” on €26bn (£22bn) worth of US goods in retaliation after Donald Trump’s tariffs on steel and aluminium imports, escalating a global trade war.The president of the European Commission, Ursula von der Leyen, called the 25% US levies on global imports of the metals “unjustified trade restrictions”, after they came into force at 4am GMT on Wednesday.“We deeply regret this measure,” von der Leyen said in a statement, as Brussels announced it would be “launching a series of countermeasures” on 1 April. “The European Union must act to protect consumers and business,” she added.The commission said it would be targeting industrial products in response, including steel and aluminium, as well as household tools, plastics and wooden goods.In addition, the EU measures will affect some US agricultural products, such as poultry, beef, some seafood, nuts, eggs, dairy, sugar and vegetables, provided they are approved by member states.The retaliatory measures will also entail Brussels reimposing the tariffs on US goods including bourbon whiskey, jeans and Harley-Davidson motorbikes that it introduced during the first Trump term.“We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs,” von der Leyen said.France’s European affairs minister, Benjamin Haddad, said on Wednesday that the EU could “go further” in its response to the US tariffs. The measures “are proportionate”, Haddad told TF1 television. “If it came to a situation where we had to go further, digital services or intellectual property could be included,” he said.Britain would not issue its own immediate measures in response to the US tariffs but was going to “reserve our right to retaliate”, a UK minister said.The exchequer secretary to the Treasury, James Murray, told Times Radio the levies were disappointing but “we want to take a pragmatic approach, and we’re already negotiating rapidly toward an economic agreement with the US, with the potential to eliminate additional tariffs”.Asked by Sky News whether Britain’s response to the levies could be called weak in comparison with Brussels, Murray said the UK was in a “very different position than the EU” and does not want to be “pushed off course” as it pursues a trade deal with Washington.“We think the right response is to continue pragmatically, cool-headedly, without a knee-jerk response, but toward our economic agreement that we’re negotiating with the US to secure, because that’s in the best interests of the UK,” he said.skip past newsletter promotionafter newsletter promotionHis comments came after the prime minister, Keir Starmer, said on Tuesday that Britain would not respond with its own counter-tariffs, after last-ditch efforts to persuade Trump to spare British industry from his global tariffs appeared to have failed.The UK steel industry warned that Trump’s tariffs “couldn’t come at a worse time”, and said the move would have “hugely damaging consequences for UK suppliers and their customers in the US”.Gareth Stace, the director general of the trade association UK Steel, called the Trump administration’s move “hugely disappointing”. He said: “President Trump must surely recognise that the UK is an ally, not a foe. Our steel sector is not a threat to the US but a partner to key customers, sharing the same values and objectives in addressing global overcapacity and tackling unfair trade.“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape.”The introduction of EU measures came after a day of drama on Tuesday, when Trump threatened to double tariffs on Canadian steel and aluminium in response to Canadian threats to increase electricity prices for US customers.The US president backed off from those plans after the Ontario premier, Doug Ford, agreed to suspend his province’s decision to impose a 25% surcharge on electricity exports to the states of Minnesota, Michigan and New York. More

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      European Leaders Try to Recalibrate After Trump Sides With Russia on Ukraine

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      The American president’s latest remarks embracing Vladimir Putin’s narrative that Ukraine is to blame for the war have compounded the sense of alarm among traditional allies.President Emmanuel Macron of France called a second emergency meeting of European allies on Wednesday seeking to recalibrate relations with the United States as President Trump upends international politics by rapidly changing American alliances.Mr. Macron had already assembled a dozen European leaders in Paris on Monday after Mr. Trump and his new team angered and confused America’s traditional allies by suggesting that the United States would rapidly retreat from its security role in Europe and planned to proceed with peace talks with Russia — without Europe or Ukraine at the table.Mr. Trump’s remarks late on Tuesday, when he sided fully with Russia’s narrative blaming Ukraine for the war, have now fortified the impression that the United States is prepared to abandon its role as a European ally and switch sides to embrace President Vladimir V. Putin of Russia.It was a complete reversal of historic alliances that left many in Europe stunned and fearful.“What’s happening is very bad. It’s a reversal of the state of the world since 1945,” Jean- Yves Le Drian, a former French foreign minister, said on French radio Wednesday morning.“It’s our security he’s putting at risk,” he said, referring to President Trump. “We must wake up.”Fear that Mr. Trump is ready to abandon Ukraine and has accepted Russian talking points has been particularly acute in Eastern and Central Europe, where memories are long and bitter of the West’s efforts to appease Hitler in Munich in 1938 and its assent to Stalin’s demands at the Yalta Conference in 1945 for a Europe cleaved in two.“Even Poland’s betrayal in Yalta lasted longer than Ukraine’s betrayal in Riyadh,” Jaroslaw Walesa, a Polish lawmaker and the son of Poland’s anti-Communist Solidarity trade union leader, Lech Walesa, said Wednesday on social media, referring to the American-Russian talks in Saudi Arabia on Tuesday.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Guardian view on the EU-Mercosur trade deal: another farmer flashpoint approaches | Letters

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      Anticipating the strong protectionist winds that will blow from Donald Trump’s White House, the president of the European Commission, Ursula von der Leyen, has been responding by making her own economic weather. Last week, Ms von der Leyen flew to Montevideo, 5,000 miles south of Washington DC, to controversially conclude negotiations in one of the biggest free trade agreements in history. Twenty-five years in the making, the Mercosur trade deal opens up trade between the EU and a Latin American bloc of partners comprising Argentina, Brazil, Paraguay and Uruguay.In theory, the agreement promises a more open market of 700 million people for products ranging from Argentine beef to German cars. For European manufacturers, it would eliminate tariffs on a majority of goods. As Mr Trump threatens to impose heavy tariffs on Chinese and European exports, here was evidence, asserted Ms von der Leyen, “that openness and cooperation are the true engines of progress and prosperity”.This sunny analysis does not, however, tell the whole story. From an economic perspective, the Mercosur deal makes sense for Europe, offering an alternative market in the event of US tariffs and amid the continuing Chinese slowdown. It also deepens European connections with the global south, at a time when Beijing is doing the same in systematic fashion. But the political realities are treacherous: opposing Mercosur is a common cause celebre among European farmers, who fear being undercut by Latin American producers who are not subject to the same environmental standards.At the end of a year in which farmers’ protests have made headlines across the continent, and far-right parties have exploited rural resentment to attack the EU’s green transition, this is territory to be navigated with extreme care. The deal has yet to be ratified, and EU member states are split. Germany, desperate to shore up its export industry, is strongly in favour. France, whose farmers famously carry immense political clout, is implacably opposed. Serious reservations have been expressed by the Netherlands, Poland, Austria, Italy and Ireland.Less than a month after officially beginning her second term in office, Ms von der Leyen is taking a risk by pushing ahead at pace when such divisions exist. Approval of the trade part of the overall deal may be subject to a qualified majority vote, meaning that France would not be able to exercise its veto. That would be grist to Marine Le Pen’s mill, given that, in one recent poll, almost two-thirds of French citizens said they no longer had confidence in the EU. Meanwhile, the prospect of a disunited European front – with France and Germany at loggerheads – as Mr Trump enters the White House, is not an uplifting one.In the quarter of a century since the Mercosur negotiations began, the negative impacts of globalisation on particular European regions and economic sectors have driven a backlash that has benefited the far right. Trade deals are about politics as well as economics. To avoid the fallout of this deal overshadowing the economic gains, Brussels should make it a priority that losers from it are adequately compensated. Bypassing a necessary battle for hearts and minds, as the EU confronts new geopolitical challenges without and the rise of Eurosceptic nationalism within, is not a viable option.

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      Backlash Erupts Over Europe’s Anti-Deforestation Law

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      Leaders around the world are asking the European Union to delay rules that would require companies to police their global supply chains.The European Union has been a world leader on climate change, passing groundbreaking legislation to reduce noxious greenhouse gasses. Now the world is pushing back.Government officials and business groups around the globe have jacked up their lobbying in recent months to persuade E.U. officials to suspend a landmark environmental law aimed at protecting the planet’s endangered forests by tracing supply chains.The rules, scheduled to take effect at the end of the year, would affect billions of dollars in traded goods. They have been denounced as “discriminatory and punitive” by countries in Southeast Asia, Latin America and Africa.In the United States, the Biden administration petitioned for a delay as American paper companies warned that the law could result in shortages of diapers and sanitary pads in Europe. In July, China said it would not comply because “security concerns” prevent the country from sharing the necessary data.Last week, the chorus got larger. Cabinet members in Brazil, the director general of the World Trade Organization and even Chancellor Olaf Scholz of Germany — leader of the largest economy in the 27-member European Union — asked the European Commission’s president to postpone the impending deforestation regulations.The uproar underscores the bruising difficulties of making progress on a problem that most everyone agrees is urgent: protecting the world’s population from devastating climate change.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Push for Gender Equality in E.U.’s Top Roles Looks Set to Fall Short

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      Ursula von der Leyen, the European Commission president, asked member countries to nominate both men and women for commission roles.The European Union has presented itself as a champion for promoting gender equality, adopting rules requiring companies to increase the number of women on their boards and pushing employers to address the gender pay gap.So when Ursula von der Leyen, the president of the European Commission, asked recently for member countries to nominate both male and female candidates for leadership positions within the 27-member bloc’s executive arm, it was seen as an attempt to apply that vision to its own halls. The problem is, few have listened.Only five countries — Sweden, Finland, Spain, Portugal and Croatia — have put forward female candidates ahead of a Friday deadline. Seventeen countries have nominated only men for their commissioner posts. (Three countries have yet to submit names.) Each country gets one leadership slot.It’s possible that some countries could still change their nominees ahead of the deadline. But the current slate of nominees suggests that the European Commission’s leadership team will likely be composed mostly of men for the next five years — and analysts said the public snub of Ms. von der Leyen’s request signals her leadership could be weakened.“It’s not a small thing, asking for gender balance and clearly not getting it,” said a senior European official. “It’s not just one, two countries.” Speaking on condition of anonymity because the process was ongoing, the official said that indicated Ms. von der Leyen’s relations with member states would be more difficult.Ms. von der Leyen, a conservative German politician, secured a second five-year term in a vote last month.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Europe Slashes Tariffs for Tesla Vehicles Made in China

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      The European Commission will charge the U.S. automaker an additional duty of 9 percent, much lower than tariffs levied on its Chinese peers for electric vehicles imported to Europe.The European Union is proposing to charge Tesla an additional tariff of 9 percent on its vehicles imported from China while other automakers face rates as high as 36.3 percent, as part of efforts to protect European producers from unfair competition.The updated tariffs, announced in Brussels on Tuesday, would represent a significant increase for major companies making electric vehicles in China and are meant to level the playing field with Chinese E.V. manufacturers, many of which enjoy subsidies from Beijing. Final tariffs will come on top of the existing 10 percent already charged for electric vehicles produced in China.The European Union began investigating Chinese automakers in October. Officials said they lowered the rate for Tesla, down from a proposed 21 percent, because the company did not benefit from the same level of subsidies from the Chinese government as leading Chinese automakers. Tesla did not immediately respond to a request for comment.The tariffs for Chinese automakers, which would go into effect for five years, all dropped slightly from an original proposal in June, ranging from 17 percent for China’s largest producer of electric vehicles, BYD, to 36.3 percent for SAIC Motor, the state-owned maker of MG Motor. Geely Auto, the parent company of Volvo Car, faces a rate of 19.3 percent.Companies that cooperated with the investigation, including the German automakers BMW, Mercedes and Volkswagen, face tariffs of 21.3 percent for cars they produce in China. Unlike Tesla, which has its own independent production site in Shanghai, the German car companies are all involved in joint ventures with Chinese automakers. Because Volkswagen also has an entity with SAIC, some of its cars will be subject to the highest tariffs.Compared with the 100 percent tariffs the Biden administration imposed on Chinese E.V.s in May, the European proposals reflect what experts say is a desire to maintain trade with China, while protecting domestic production. Since the initial tariffs were announced several Chinese automakers have announced plans to shift production to Europe.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Meta’s Ad-Free Subscription Violates Competition Law, E.U. Says

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      Regulators said the subscription service introduced last year is a “pay or consent” method to collect personal data and bolster advertising.When Meta introduced a subscription option last year that would allow users in the European Union to pay for an advertising-free experience of Instagram and Facebook, it was meant to fix regulatory problems the company faced in the region.The plan created new legal headaches instead.On Monday, European Union regulators said Meta’s subscription, which costs up to 12.99 euros a month, amounted to a “pay or consent” scheme that required users to choose between paying a fee or handing over more personal data to Meta to use for targeted advertising.Meta introduced the subscription last year as a way to address regulatory and legal scrutiny of its advertising-based business model. Of most concern was the company’s combination of data collected about users across its different platforms — including Facebook, Instagram and WhatsApp — along with information pulled from other websites and apps.Meta argued that by offering a subscription, users had a fair alternative.But regulators on Monday said the system was no choice at all, forcing users to pay for privacy. The authorities said Meta’s policy violated the Digital Markets Act, a new law aimed at reining in the power of the biggest tech companies.The law, known as the D.M.A., is intended to prevent large tech companies from using their size to coerce users into accepting terms of service they would otherwise reject, including the collection of personal data. The concern was platforms like Instagram and Facebook are so widely used that people have to choose to either hand over their data or not join at all.Regulators said the law required companies to allow users to opt out of having their personal data collected while still getting a “less personalized but equivalent alternative” of the service.“Meta’s ‘pay or consent’ business model is in breach of the D.M.A.,” said Thierry Breton, the European commissioner who helped draft the law. “The D.M.A. is there to give back to the users the power to decide how their data is used and ensure innovative companies can compete on equal footing with tech giants on data access.”In a statement, Meta said that the subscription service complied with the Digital Markets Act and that it would work with European regulators to resolve the investigation.Last week, Nick Clegg, Meta’s president, said that Europe was falling behind economically because of overregulation. “Europe’s regulatory complexity and the patchwork of laws across different member states often makes companies hesitant to roll out new products here,” he said.The announcement on Monday is one step in a longer process. The European Commission, the executive branch of the 27-nation bloc, has until March to complete its investigation. If found guilty, Meta could face fines of up to 10 percent of its global revenue and up to 20 percent for repeat offenses.Meta is the second company to face charges under the Digital Markets Act. Last week, the commission brought charges against Apple for unfair business practices related to the App Store. More

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      In Meeting With Xi, E.U. Leader Takes Tough Line on Ukraine War

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      Ursula Von der Leyen, the European Commission president, pushed Beijing to help rein in Russia’s war in Ukraine after meeting with the Chinese and French leaders in Paris.Ursula von der Leyen, the European Commission president, put pressure Monday on China to help resolve the war in Ukraine, saying Beijing should “use all its influence on Russia to end its war of aggression against Ukraine.”She spoke after accompanying President Emmanuel Macron of France in a meeting with Xi Jinping, the Chinese president, who began his first visit to Europe in five years on Sunday. Ms. von der Leyen has persistently taken a stronger line toward China than has Mr. Macron.With President Vladimir V. Putin of Russia again suggesting he might be prepared to use nuclear weapons in the war in Ukraine, she said Mr. Xi had played “an important role in de-escalating Russia’s irresponsible nuclear threats.” She was confident, Ms. von der Leyen said, that Mr. Xi would “continue to do so against the backdrop of ongoing nuclear threats by Russia.”Whether her appeal would have any impact on Mr. Xi was unclear, and describing the conflict as Russia’s “war of aggression” in Ukraine seemed likely to irk the Chinese leader. Beijing has forged a “no limits” friendship with Russia and provided Moscow with critical support for its military effort, including jet fighter parts, microchips and other dual-use equipment.“More effort is needed to curtail delivery of dual-use goods to Russia that find their way to the battlefield,” Ms. von der Leyen said of China. “And given the existential nature of the threats stemming from this war for both Ukraine and Europe, this does affect E.U.-China relations.”It is relatively unusual for a top European official to describe the war in Ukraine as an “existential threat” to the European continent. Doing so may reflect Mr. Putin’s renewed talk of the use of nuclear weapons.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      TikTok Is Subject of E.U. Inquiry Over ‘Addictive Design’

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      The European Commission said it would investigate whether the site violated online laws aimed at protecting children from harmful content.European Union regulators on Monday opened an investigation into TikTok over potential breaches of online content rules aimed at protecting children, saying the popular social media platform’s “addictive design” risked exposing young people to harmful content.The move widens a preliminary investigation conducted in recent months into whether TikTok, owned by the Chinese company ByteDance, violated a new European law, the Digital Services Act, which requires large social media companies to stop the spread of harmful material. Under the law, companies can be penalized up to 6 percent of their global revenues.TikTok has been under the scrutiny of E.U. regulators for months. The company was fined roughly $370 million in September for having weak safeguards to protect the personal information of children using the platform. Policymakers in the United States have also been wrestling with how to regulate the platform for harmful content and data privacy — concerns amplified by TikTok’s links to China.The European Commission said it was particularly focused on how the company was managing the risk of “negative effects stemming” from the site’s design, including algorithmic systems that it said “may stimulate behavioral addictions” or “create so-called ‘rabbit hole effects,’” where a user is pulled further and further into the site’s content.Those risks could potentially compromise a person’s “physical and mental well-being,” the commission said.“The safety and well-being of online users in Europe is crucial,” Margrethe Vestager, the European Commission’s executive vice president overseeing digital policy, said in a statement. “TikTok needs to take a close look at the services they offer and carefully consider the risks that they pose to their users — young as well as old.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More