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    American democracy might not survive another year – is Europe ready for that? | Alexander Hurst

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    Fascism is supposed to look a certain way: black-clad, uniformed, synchronised and menacing. It is not supposed to look like an overweight president who can’t pronounce acetaminophen and who bumbles, for a full minute, about how he would have renovated the UN’s New York headquarters with marble floors, rather than a terrazzo. But as Umberto Eco remarked in his timeless essay on identifying the eternal nature of fascism: “Life is not that simple. Ur-Fascism can come back under the most innocent of disguises.”Historians, scholars and even some insiders from the first Trump administration have seen through the comedic quality of the disguise. They appear to have seen in Donald Trump himself and those around him, Eco’s core criteria: the call to tradition and the rejection of reason, the fear of difference, the hostility towards disagreement, the ressentiment, the machismo, the degradation of language into newspeak, the cult of a “strong” leader. Almost a year ago, the historian Robert Paxton, in explaining why he had changed his mind about employing the word to describe Trumpism, remarked: “It’s bubbling up from below in very worrisome ways, and that’s very much like the original fascisms. It’s the real thing. It really is.”Since then, the Trump administration has deployed the US military and National Guard to cities against the will of their state governors. It has put pressure on state legislatures to disenfranchise opposition voters in extraordinary ways, and floated the idea of disenfranchising all voters residing outside the US by ending mail-in voting. It has used the power of the state to censor books, bully the media and “cancel” comedians who regularly make fun of Trump. It has seized executive power in alarming and potentially illegal ways, including the use of tariffs, immigration policy and targeted exemptions to generate subservience among powerful corporate actors.An over-fixation on whether actions are legal or not misses the forest for the trees: constitutionality is, practically speaking, whatever the supreme court decides. If the supreme court acquiesces to fundamental changes in the nature of what the US is, that is merely one more sign of how deep the rot goes. And from concrete policy to the decision to publicly venerate the Confederacy, the intended direction of travel is clear.The disguise dropped a little bit more, in the aftermath of Charlie Kirk’s murder – one more tragic datapoint in the merging of the US’s epidemic of gun violence and its growing political violence. At his strange funeral-rally-spectacle, Stephen Miller, the White House deputy chief of staff, gave a speech dripping with everything Eco sought to warn us against, raging against a diffuse “they” who “cannot conceive of the army they have arisen in all of us”. “You are nothing,” Miller continued. “You have nothing. You are wickedness. You are jealousy. You are envy. You are hatred. You are nothing. You can build nothing. You can produce nothing.”In the past year, as Trump and those behind him have dismantled the institutions of US democracy with incredible speed, the European conversation finally moved from denial to attempts at bargaining, with some acceptance of US disengagement and disinterest going forward. But there has been almost no space for a high-level, public conversation about what to do when the US government is, for the foreseeable future, in the hands of actors hostile to the EU’s basic raison d’être and its values.I understand why European leaders don’t want to have this conversation openly with voters. They fear that alienating Trump, even slightly, will lead him to drop US support for Ukraine. The cleverest think they can buy time by flattering Trump, manipulating him just long enough to find a better footing, while the blindly optimistic look to the 2026 midterms as an inflection point, and some sort of “return to normal”. But the midterms will not save us. As the Democrats’ elections attorney Marc Elias laid out in detail for The New Yorker, the 2026 elections will probably not be wholly free and fair, and even where they are, Trump’s prior history of insurrection indicates that the results very well might not be honoured. And Trump is already laying the groundwork to drop Ukraine fully into Europe’s lap.During the first Trump administration, we heard, ad nauseam, that he should be taken seriously, but not literally. It was a mistake then, and it’s a mistake now. When Trump says, “I hate my opponent and I don’t want the best for them”, we in Europe (“a foe,” remember?) should take him literally. The radical authoritarian agenda the Trump administration is pursuing domestically matters to Europe. A US with a new, masked, secret immigration police with nearly unlimited funds, whose “red” government deploys its military to “blue” cities, and uses the criminal justice system to exact retribution on political opponents at the president’s behest – in short, the end of the rule of law – necessarily affects European democracy. Not least, because the Trump administration is engaged in a culture war against Europe, promoting forces that seek to destroy it as it currently exists.European voters are out in front of the politicians on this one. The spring Eurobarometer survey showed that large majorities of citizens want the EU to protect them from crises and security risks, think the EU needs more financial means to do so, and support that new funding coming from the EU as a whole, rather than member states alone. A survey of the EU’s five biggest states, France, Germany, Spain, Italy and Poland, found that 52% think the EU was humiliated in the recent trade deal with the US. They blame the commission for not “defending” Europe more ardently, with a strong minority of 39% wanting the bloc to become more “oppositional” to Trump.Timothy Garton Ash recently gave Americans 400 days to save their democracy. As an American, I don’t think the country has that long. As Europeans, we should assume that it does not.skip past newsletter promotionafter newsletter promotionEuropeans are ready for an honest conversation about the challenge Europe faces from Trump – the same way they’ve solidified in the face of aggression from Vladimir Putin. The danger lies in Europe’s leaders fudging, hesitating and avoiding this conversation. If they cannot lead with candour, voters will conclude that European democracy and its institutions are too weak to withstand the pincer move that is building against it.

    Alexander Hurst is a Guardian Europe columnist More

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      Trump says he believes Ukraine can regain all land lost to Russia since 2022 invasion

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      Donald Trump has said he believes Ukraine can regain all the land that it has lost since the 2022 Russian invasion in one of the strongest statements of support he has given Kyiv.The US president delivered his upbeat assessment by claiming Russia was in big economic trouble in a post on Truth Social after meeting the Ukrainian president, Volodymyr Zelenskyy, in New York.He wrote: “After getting to know and fully understand the Ukraine/Russia Military and Economic situation and, after seeing the Economic trouble it is causing Russia, I think Ukraine, with the support of the European Union, is in a position to fight and WIN all of Ukraine back in its original form.“With time, patience, and the financial support of Europe and, in particular, NATO, the original Borders from where this War started, is very much an option. Why not?”Trump added: “Russia has been fighting aimlessly for three and a half years, a war that should have taken a Real Military Power less than a week to win.”The US president said this was not making Russia look distinguished, but instead a paper tiger, pointing to the long queues for petrol inside the country. He added: “Putin and Russia are in BIG Economic trouble, and this is the time for Ukraine to act.” He also promised “to supply weapons to NATO for NATO to do what they want with them”.Earlier, Trump said that he planned to enforce his demand that Nato countries stop importing Russian oil – including Hungary, led by his close ally Viktor Orbán.In his speech to the UN general assembly the US president renewed his demand for Europe to end its “embarrassing” purchase of oil and gas from Russia, saying until it did so he would not impose his long-promised economic punishment on Moscow.Trump also said he believed Nato aircraft should shoot down Russian aircraft if they entered its airspace, but later qualified his remarks by saying it depended on the circumstances.He made his remarks alongside Zelenskyy, whom he described as a “brave man”. Asked if he still trusted the Russian president, Vladimir Putin, Trump said he would know in a month’s time.It came after the US secretary of state, Marco Rubio, had given less wholehearted support for shooting down Russian planes in Nato airspace, saying this should only happen “if they’re attacking”.View image in fullscreenIn his speech to the UN Trump mocked Nato allies’ failure to curb oil imports, saying: “China and India are the primary funders of the ongoing war by continuing to purchase Russian oil. But inexcusably, even Nato countries have not cut off much Russian energy and Russian energy products … I found out about it two weeks ago, and I wasn’t happy.“They’re funding the war against themselves. Who the hell ever heard of that one? In the event that Russia is not ready to make a deal to end the war, then the United States is fully prepared to impose a very strong round of powerful tariffs.“But for those tariffs to be effective, European nations, all of you … gathered here right now, would have to join us in adopting the exact same measures.”Trump did not specify the measures, but he has been stalling on a package that includes tariffs against countries that do business with Russia, such as India and China. He has already imposed 50% tariffs on India, but is also in the middle of negotiations that could see those lifted.Regarding Orbán, the Hungarian prime minister, Trump said: “He’s a friend of mine. I have not spoken to him [about importing Russian oil], but I have a feeling if I did, he might stop, and I think I’ll be doing that.”In response to Trump’s demands, the EU is trying to bring forward the date by which it ends the import of liquid natural gas imports from Russia to 2026 – a year earlier than planned. The EU is opposed to imposing vast tariffs on China or India, but is looking at more targeted measures against Indian and Chinese oil refineries.Trump said he would be discussing the issue with EU leaders, adding: “They can’t be doing what they’re doing. They’re buying oil and gas from Russia while they’re fighting Russia … They have to immediately cease all energy purchases from Russia. Otherwise, we are all wasting a lot of time.”The EU’s 19th sanctions package also proposes export controls on another 45 companies that are deemed to be cooperating on sanctions evasion. Those include 12 Chinese, two Thai and three Indian entities that have enabled Russia to circumvent the bloc’s sanctions.View image in fullscreenHungary’s foreign minister, Péter Szijjártó, told the Guardian that Hungary could not wean itself off Russian energy supplies. He said: “We can’t ensure the safe supply [of energy products] for our country without Russian oil or gas sources,” while adding that he “understood” Trump’s approach.“For us, energy supplies are a purely physical question,” he said. “It can be nice to dream about buying oil and gas from somewhere [besides Russia] … but we can only buy from where we have infrastructure. And if you look at the physical infrastructure, it’s obvious that without the Russian supplies, it is impossible to ensure the safe supply of the country.”Budapest relies on the Druzhba oil pipeline and the TurkStream gas pipeline to receive Russian hydrocarbons.Slovakia, the second EU country still importing Russian oil, said it had already spoken to the US about the issue, and received a sympathetic response. “As long as we have an alternative route, and the transmission capacity is sufficient, Slovakia has no problem diversifying,” said the economy minister, Denisa Saková.Hungary and Slovakia are the two countries that have most frequently called for the EU to reduce its support for Ukraine. More

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      Europe has lost one superpower ally – can it afford to be in the crosshairs of two? | Nathalie Tocci

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      Europe’s relationship with the US is unmoored, but it has also lost its bearings with regard to China, caught by competing forces that pull and push in opposite directions.Europe’s China policy used to be a function of Washington’s. When Barack Obama tried and then failed to pivot to Asia in 2011, sucked into turmoil in the Middle East instead, Europeans lulled themselves into the belief that their relationship with Asia could continue to be driven by trade, with security an afterthought.Despite rising tensions in the South China Sea, the Korean peninsula and the Taiwan strait, European governments viewed Asia, including China, through a predominantly economic lens. China’s belt and road initiative was initially seen as a purely economic endeavour, lacking strategic edge. It was only as US-China relations soured, under the first Trump administration and then especially under Joe Biden, that Brussels switched gears.China was no longer seen only as a partner, but more warily, as a competitor and systemic rival. Investment screening, tariffs and export controls entered the European lexicon when talking about China. The link to the US was clear. While the EU rejected any decoupling from China, considering it undesirable and impossible, it began advocating “de-risking” instead. Once unpacked, this is no different from other trademark European concepts such as strategic autonomy and economic security. But the timing and the framing of Brussels’s more hawkish line made it clear that its north star on China was Washington.This worked so long as the transatlantic relationship was strong and Washington’s approach to China was clear and predictable. None of that is true today. Toughening up to match China’s assertiveness, for instance, by accepting and even advocating for Nato’s role in east Asia, continues to anger Beijing.But it no longer necessarily rallies favour in Washington. The Trump administration may bully Europeans to inflict costs on China, for example by applying secondary sanctions on countries that continue to buy Russian oil and gas. But this does not guarantee that Trump will stand by Europe on Ukraine, or that Washington has any intention of exerting meaningful economic pressure on Beijing. So far, it’s China that has retained the upper hand in the trade war with the US. Trump treats Europe as subservient: he’s happy to see it inflict economic pain on Beijing at its own cost, but wants to avoid incurring such costs himself. As with most things Trump-related, it’s a toss of the coin whether he escalates or strikes deals with Beijing, naturally over the heads of European and Asian partners.With Washington’s north star gone, Europeans are left figuring out what they actually think, and how they’ll act towards China. Should they double down on trade protectionism to counter the negative impact on Europe of Chinese industrial overcapacity? Should they encourage Chinese technology transfers to the continent, avoid a trade war and jointly develop a strategy with Asia to save the global trade order? Should they embrace Chinese green tech, aware that proceeding with the energy transition and meeting climate ambitions is impossible without it, or try to dilute green dependency on China? And in the global south, as the US exits from the development aid field, can the EU realistically counter China’s vast belt and road initiative, or should it reconcile itself to its own “global gateway” infrastructure initiative being complementary to it?View image in fullscreenNone of these questions have simple answers. Making them harder still are two underlying dilemmas that lie at the heart of Europe’s own future.First is the future of liberal democracy in Europe. Democracy is under threat in the west. Far-right, nationalist and populist forces are on the rise, as is polarisation, radicalisation, disinformation and extremism, threatening fundamental freedoms, the rule of law and the separation of powers. China, unlike Russia and the Maga movement in the US, does not explicitly back these far-right forces, nor does it appear to have any desire to export its model of government. However, given that China is the ultimate case of an economically successful authoritarian system, it inspires those in Europe who want to see their countries move in an illiberal direction. No wonder that China’s closest European partners are Hungary, Slovakia and Serbia, as was blatantly on display when their leaders (or, in Hungary’s case, foreign minister) attended China’s military parade in Beijing in September. When it comes to the magnetic draw that China exerts on authoritarian and illiberal forces in Europe, there’s not much European governments and institutions can expect from Beijing. The onus is on them to demonstrate that liberal democracy delivers.The second dilemma regards security, and in particular the war in Ukraine. While China claims to be neutral maintaining ties with Kyiv and Moscow – and, at least theoretically, supports sovereignty and territorial integrity – in practice it sides with Moscow. President Xi Jinping’s no-limits friendship with Vladimir Putin is increasingly on display, and Beijing’s peace efforts on Ukraine have proved empty. In fact, China has visibly benefited from the war, not only through cheap Russian oil and gas, but especially strategically: Russia has become the junior partner in the relationship.Europe cannot push China to turn its back on Russia, nor expect it to stop trading with Russia. But if China were truly neutral, it wouldn’t support Russia through the export of dual-use technology. If it genuinely wanted the war to end, it would exert pressure on Moscow, just like it did to mitigate Putin’s worst instincts when he irresponsibly threatened the use of nuclear weapons. Especially now that Trump’s failed diplomacy on Ukraine has revealed to all that it’s Putin, and Putin alone, that does not want the war to end.skip past newsletter promotionafter newsletter promotionWhen I was in Beijing this month, I argued that Ukraine now represents a core interest for Europe, and that China’s stance on the war is the biggest thorn in Europe-China relations. I said that it was not only a question of values – on which, tragically, any remaining European credibility has collapsed since the Gaza war – but of security interests. The replies I got were telling. Just as Europeans now view their relationship with China through the lens of Russia, China sees Europe through the paradigm of its competition with the US. Beijing believes that if worst comes to worst in US-China relations, Europe would stand with Washington, notwithstanding Trump and the US’s abandonment and betrayal of Europe. For China, I was told, keeping Russia on side is a strategic must. In the current circumstances Russia trumps Europe from Beijing’s perspective. It’s hard not to see the logic.Russia represents a vital threat to European security and Europeans will bend over backwards to keep the US engaged in their defence. This is likely to fail – regardless of how much flattery and self-abasement they offer to Trump. And while Europe could potentially confront Russia without the US, it cannot do so while China is in its crosshairs too.This leaves Europe with no easy way out, but wishing the problem away is no answer.

      Nathalie Tocci is a Guardian Europe columnist More

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      Zelenskyy’s European ‘bodyguards’: which leaders joined Trump talks in Washington?

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      European leaders gathered in Washington on Monday for Volodymyr Zelenskyy’s meeting with Donald Trump in the Oval Office, in a show of support for the Ukrainian president. Their presence came amid expectations that Trump would try to bully Zelenskyy into accepting a pro-Russia “peace plan” that would include Kyiv handing territory to Moscow. The Europeans have been described as Zelenskyy’s “bodyguards”, with memories fresh of the mauling he received in February during his last Oval Office visit. So, who are they?Mark RutteSecretary general of NatoRutte has a proven record of flattering Trump for strategic purposes, using language that some allies find cringe-making. In June he referred to the capricious US president as “Daddy” in an attempt to avoid disastrous outbursts at the Nato summit. Rutte has repeatedly praised Trump in public, including in a recent interview on Fox News, and credits him for pushing Nato members to spend 3.5% of their GDP on defence. The US had carried the burden of European security for too long, Rutte has said – music to Trump’s ears.Ursula von der LeyenPresident of the European CommissionVon der Leyen is a staunch supporter of Ukraine who backs Kyiv’s EU membership. For Trump, she is a reminder of Europe’s combined importance as an economic bloc. The US struck a trade deal with the EU three weeks ago, and Trump hailed the relationship as “the biggest trading partnership in the world”. On Sunday she hosted Zelenskyy in Brussels. She said a post-peace-deal Ukraine had to become “a steel porcupine, indigestible for potential invaders”, with no limits on its armed forces.Keir StarmerUK prime minister Starmer has performed a balancing act when it comes to Trump, keeping him on side while advocating for Ukraine. So far, this tactic has worked. The US president has gone out of his way to emphasise their good relations, despite Starmer’s “liberal” outlook. Both men have an incentive to preserve this rapport ahead of Trump’s state visit next month to the UK. Meanwhile, Starmer and Zelenskyy have developed a warm personal relationship, hugging in February outside Downing Street after Zelenskyy’s previous, disastrous Oval Office meeting, and again last week. The prime minister stresses territorial integrity, which contradicts Trump’s “peace deal” that involves Russia taking more Ukrainian land.Alexander StubbPresident of Finland Stubb represents a small European state but he will be in Washington because he has managed to establish an unexpectedly warm relationship with Trump. The Finnish leader cultivated his access to the US president by hastily polishing his rusty golfing skills before an impromptu trip to Florida in March for a round with Trump, on the recommendation of the Republican senator Lindsey Graham. Stubb’s message on the putting green: you can’t trust Vladimir Putin. Finland sees parallels between Ukraine’s plight and its own history, the Soviet Union having invaded in 1939, saying it needed Finnish territory.Emmanuel MacronFrench presidentMacron combines French economic and military clout with a proven ability to get on with Trump, symbolised by their intense handshakes. In the lead-up to Russia’s 2022 invasion, Macron flew to Moscow to reason with Putin. He has since become a key diplomatic ally for Ukraine. Asked on Sunday whether Putin wanted a genuine peace deal, Macron replied: “No.” He said Ukraine needed a strong army and security guarantees if a lasting settlement was to be achieved. The French president will want to persuade Trump that his post-Alaska-summit plan to stop the fighting is a non-starter, and against Ukraine and Europe’s long-term security interests.Friedrich MerzGerman presidentMerz has cut a sure-footed figure on the world stage since taking office in May, including largely holding his own in an Oval Office face-off with Trump over the summer. He has emerged as a crucial partner for Zelenskyy, who was often frustrated with Merz’s slow-moving predecessor, Olaf Scholz. Berlin has clout as one pillar of the French-German axis at the heart of the EU. It is also a major financial donor to Kyiv. Merz’s task in the Oval Office is to persuade Trump not to act hastily and “over the heads of Ukrainians and Europeans”, as he put it last week.Giorgia MeloniPrime minister of ItalyMeloni has broken off from her holiday to fly to Washington, a sign that Trump’s Russia-friendly “peace plan” marks a moment of danger for Europe. She will be a useful bridge in the Oval Office meeting, as a European far-right leader whom Trump counts as a friend. Meloni has spent time at Mar-a-Lago, the US president’s Florida home, and was the only European leader invited to his inauguration in January. At the same time, she strongly supports Kyiv’s sovereignty. In July she hosted a Ukraine recovery conference in Rome, designed to help the country rebuild when Russia’s war finally ends. More

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      As Trump’s tariff regime becomes clear, Americans may start to foot the bill

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      Burying the hatchet with Brussels, Donald Trump – flanked by the leader of the European Commission – hailed a bold new era of transatlantic relations, an ambitious economic pact, and declared: “This was a very big day for free and fair trade.”That was seven years ago. And then on Sunday, the US president – flanked by a different leader of the European Commission – hailed another new era of transatlantic relations, another economic pact and declared: “I think it’s the biggest deal ever made.”Trumpian hyperbole can typically be relied upon as long as he’s in the room, at the lectern or typing into Truth Social. What matters after that is the underlying detail – and we have very little, beyond a handful of big numbers designed to grab headlines.What we do know, as a result of this deal, is that European exports to the US will face a blanket 15% tariff: a tax expected, at least in part, to be passed along to US consumers. The price of key products shipped from the EU, from cars to medicine and wine, is about to come into sharp focus.This pact is not unique. Trump’s agreement with Japan also hits Japanese exports to the US with a 15% tariff. Most British exports to the US face a 10% tariff under his deal with the UK.A string of countries without such accords, including Brazil, Canada and South Korea, are set to face even higher US tariffs from Friday. The Trump administration currently has a blanket 10% levy in place for US imports, although the president threatened to raise this to “somewhere in the 15 to 20% range” earlier this week.Ignore, for a moment, the chaos and the noise. Put to one side the unpredictable stewardship of the world’s largest economy, and its ties with the world. And forget the many U-turns, pauses and reprieves which have followed bold pronouncements, again and again and again.If you, like many businesses in the US and across the world, are struggling to keep up, take a step back and look at a single number. Since Trump took office, the average effective US tariff rate on all goods from overseas has soared to its highest level in almost a century: 18.2%, according to the Budget Lab at Yale.Trump argues this extraordinary jump in tariffs will bring in trillions of dollars to the US federal government. On his watch, tariffs have so far brought in tens of billions of dollars more in revenue this year than at the same point in 2024.But who picks up the bill? The president and his allies have position this fundamental shift in economic policy as a historic move away from taxing Americans toward taxing the world. But in reality, everyone pays.Tariffs are typically paid at the border, by the importer of the product affected. If the tariff on that product suddenly goes from 0% to 15%, the importer – as you’d expected – will try to pass it on. Every company at every stage of the supply chain will quite literally try to pass the buck, as much as possible.And the very end of the chain, economists expect prices will ultimately rise for consumers. The Budget Lab at Yale estimates the short-term impact of Trump’s tariffs so far is a 1.8% rise in US prices: equivalent to an average income loss of $2,400 per US household.skip past newsletter promotionafter newsletter promotionBig firms that have so far done their best to hold prices steady amid the blizzard of tariff uncertainty are now starting to warn of increases. Inflation, which Trump claims is very low in the US, picked up in June.The president appeared to reluctantly reckon with the reality that Americans may start to foot the bill for his tariffs before setting off for Scotland late last week.Asked about the prospect of using revenue from tariffs to distribute “rebate” checks to US consumers, Trump said: “We’re thinking about that, actually … We’re thinking about a rebate, because we have so much money coming in, from tariffs, that a little rebate for people of a certain income level might be very nice.”Given what inflation did to Joe Biden’s electoral fortunes, and Trump’s keen eye for populist policies, it’s hardly a stretch to imagine those cheques – signed by Donald J Trump – landing in bank accounts in time for the midterm elections next November.And such a move would, indeed, be very nice. Especially as it appears increasingly likely that, after this week, Americans will probably be paying more for almost everything. More

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      Trump’s latest tariffs ‘are real’ unless deals improve, economic adviser says

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      Donald Trump has seen some trade deal offers and thinks they need to be better, Kevin Hassett, the White House economic adviser, said on Sunday, adding that the president will proceed with threatened tariffs on Mexico, the European Union and other countries if they don’t improve.“Well, these tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett told ABC’s This Week program. “But you know, conversations are ongoing, and we’ll see where the dust settles.“Hassett told ABC’s This Week program that Trump’s threatened 50% tariff on goods from Brazil reflect Trump’s frustration with the South American country’s actions as well as its trade negotiations with the US.On Thursday, Brazil threatened to retaliate against Trump’s plan with its own 50% tariff on US goods. “If he charges us 50%, we’ll charge him 50%,” Luiz Inácio Lula da Silva, the Brazilian president, told local news outlet Record, a day after Trump threatened to impose steep duties on Brazilian goods.Hassett’s comments come one day after Trump announced on his Truth Social social media platform that goods imported from both the European Union and Mexico will face a 30% tariff rate starting on 1 August, angering European capitals who had thought they had previously reached a deal with Trump. The prior deal would have involved a 10% tariff, five times the pre-Trump tariff, which the bloc already described as “pain”.The German chancellor, Friedrich Merz, on Sunday said he will work intensively with French president Emmanuel Macron and European Commission president Ursula von der Leyen to resolve the escalating trade war with the United States.“I discussed this intensively over the weekend with both Macron and Ursula von der Leyen,” Merz told German broadcaster ARD, adding he had also spoken with Trump about the matter.“We want to use this time now, the two and half weeks until August 1 to find a solution. I am really committed to this,” Merz said.Merz said the German economy would be hit hard by the tariffs, and he was doing his best to make sure US tariffs of 30% were not imposed.Unity in Europe and a sensible dialogue with the US president were now needed, Merz said, although countermeasures should not be ruled out. “But not before August 1,” he said.EU trade ministers are scheduled to meet on Monday for a pre-arranged summit and will be under pressure from some countries to implement €21bn ($24.6bn) in retaliatory measures, which are now paused until 1 August, the same day as Trump’s new deadline.Macron has called on the EU to “defend European interests resolutely” in response to Trump’s threats.French cheese and wine producers have warned of the damaging impact that Trump’s threatened 30% tariffs on imports from the EU would have on the country’s agriculture industry.A 30% duty would be “disastrous” for France’s food industry, said Jean-François Loiseau, the president of food lobby group ANIA, while Francois Xavier Huard, the CEO of dairy association FNIL, said: “It’s a real shock for milk and cheese producers – this is an important market for us.”In the interview with ABC News on Sunday, Hassett also said that Trump has the authority to fire the Federal Reserve chair, Jerome Powell, for cause if evidence supports that, adding that the Fed “has a lot to answer for” on renovation cost overruns at its Washington headquarters.Any decision by Trump to try to fire Powell over what the Trump administration calls a $700bn cost overrun “is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed”, Hassett said.Vought, the White House budget director, last week slammed Powell over an “ostentatious overhaul” of the Fed’s buildings and answers to a series of questions. Trump has repeatedly said that Powell should resign because he has not lowered interest rates, and the Wall Street Journal reported this week, citing anonymous sources, that Hassett is vying to succeed him as the Fed chair. More

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      Donald Trump announces 30% tariffs on goods from the EU and Mexico

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      Donald Trump announced on Saturday that goods imported from both the European Union and Mexico will face a 30% US tariff rate starting 1 August, in letters posted on his social media platform, Truth Social.The tariff assault on the EU came as a shock to European capitals as the European Commission and the US trade representative Jamieson Greer had spent months hammering out a deal they believed was acceptable to both sides.The agreement in principle put on Trump’s table last Wednesday involved a 10% tariff, five times the pre-Trump tariff, which the bloc already described as “pain”.EU trade ministers will meet on Monday for a pre-arranged summit and will be under pressure from some countries to show a tough reaction by implementing €21bn ($24.6bn) in retaliatory measures, which they had paused until midnight the same day.In his letter to Mexico’s leader, Trump acknowledged that the country had been helpful in stemming the flow of undocumented immigrants and fentanyl into the United States.But, he said, the country had not done enough to stop North America from turning into a “Narco-Trafficking Playground”.“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,” Trump wrote in the letter to the EU. “Our relationship has been, unfortunately, far from Reciprocal.”Claudia Sheinbaum said on Saturday she is sure an agreement can be reached before Trump’s threatened tariffs take effect on 1 August.Speaking during an event in the Mexican state of Sonora, the Mexican president added that Mexico’s sovereignty is never negotiable.The higher-than-expected rate has dealt a blow to the EU’s hopes of de-escalation and a trade deal and could risk a trade war with goods of low margins including Belgian chocolate, Irish butter and Italian olive oil.The EU was informed of the tariff hike before Trump’s declaration on social media.In a letter to the EU, Trump warned that the EU would pay a price if they retaliated: “If for any reason you decide to raise your Tariffs and retaliate, then, whatever the number you choose to raise them by, will be added onto the 30% that we charge.”The European Commission president, Ursula von der Leyen, said the 30% rate would “disrupt transatlantic supply chains, to the detriment of businesses, consumers and patients on both sides of the Atlantic”.She said the bloc was one of the more open trading places in the world, and still hoped to persuade Trump to climb down.“We remain ready to continue working towards an agreement by August 1. At the same time, we will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” she said.Italy’s prime minister, Giorgia Meloni, called for “goodwill  … to reach a fair agreement that can strengthen the west as a whole. It would make no sense to trigger a trade war between the two sides of the Atlantic.” She added that both sides should avoid “polarisation”.The decision to hike the tariffs will also be another test of Trump’s ability to act in good faith in negotiations.Brussels will view the latest threat as a maneuver by Trump to extract more concessions from the EU, which he once described as “nastier” than China when it came to trade.Bernd Lange, head of the European Parliament’s trade committee, said on Saturday that Brussels should react immediately with countermeasures against Trump’s “outrageous” threat to hike tariffs on imports from the European Union.The EU had been negotiating intensively with Washington for more than three weeks and had made concessions, said Lange.“It is brazen and disrespectful to increase the tariffs on European goods announced on April 2 from 20% to 30%,” Lange told Reuters.“This is a slap in the face for the negotiations. This is no way to deal with a key trading partner.”While Trump indicated earlier this week that his new rates, also levelled against big economies including Japan, South Korea and Brazil, will not apply until 1 August, his latest tactic will create much distrust.Europe should make it clear that these “unfair trade practices” were unacceptable, Lange said.“We have postponed the first stage of our countermeasures for the time being, but I am firmly convinced that they must now be implemented immediately,” he said.“The first list of countermeasures must be activated on Monday as planned, and the second list should also follow quickly.”Brazil’s president, Luiz Inácio Lula da Silva, downplayed the impact of the threatened 50% tariff. Trump and Lula have indicated a willingness to negotiate, though Lula also said: “Trump could’ve called, but instead posted the tariff news on his website – a complete lack of respect which is typical of his behavior towards everyone.”Even if Trump had agreed to the proposal put on his table on Wednesday, further negotiations would have been needed in any case to create a legal text that can be formally registered by the US government, a process that is itself laden with risk.The UK took seven weeks to get its agreement registered with a promise included to reduce tariffs on car exports from 27.5% to 10%, but the agreed zero tariff for the British steel industry was omitted.Douglas Holtz-Eakin, a former congressional budget office director and president of the center-right American Action Forum, said the letters were evidence that serious trade talks had not been taking place over the past three months. He stressed that nations were instead talking among themselves about how to minimize their own exposure to the US economy and Trump.“They’re spending time talking to each other about what the future is going to look like, and we’re left out,” Holtz-Eakin said.He added that Trump was using the letters to demand attention, but, “in the end, these are letters to other countries about taxes he’s going to levy on his citizens”.The new tariff ends a turbulent week for the EU with Trump announcing an extension for talks until 1 August on Monday, then on Tuesday announcing the EU would “probably” receive a letter setting its new US tariff rate within 48 hours, claiming the bloc had shifted from being “very tough” to “very nice”.But diplomats viewed it as a mixed message as Trump stressed that he was still talking to negotiators from the bloc, but that he was displeased with European policies toward US tech firms. More

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      in Elections

      Von der Leyen Faces No-Confidence Vote in Far-Right Challenge

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      Ahead of the vote on Thursday, Ursula von der Leyen, president of the commission, appeared before the European Parliament to defend herself against complaints about transparency.Ursula von der Leyen, president of the European Commission, is expected to face a no-confidence vote in the European Parliament this week. While the measure is likely to fail, it will be a symbolic challenge to the European Union’s top official at a time of high tension.Ms. von der Leyen appeared before Parliament on Monday for a debate to address the complaints against her ahead of the vote, which is scheduled for Thursday.The challenge originated from Europe’s far right: Gheorghe Piperea, a parliamentary newcomer from Romania who belongs to a political group that is often critical of the European Union, accused Ms. von der Leyen’s commission, the E.U.’s executive arm, of “failures to ensure transparency.”The complaint referred to a lawsuit filed by The New York Times over the commission’s denial of a request for records of text messages between Ms. von der Leyen and Dr. Albert Bourla, Pfizer’s chief executive, when she was trying to procure coronavirus vaccines.The General Court in Luxembourg sided with The Times, ruling in May that Ms. von der Leyen’s commission did not provide enough of an explanation in refusing the request for her text messages with the Pfizer executive.Mr. Piperea’s complaint also referred to the commission’s push to ramp up joint defense procurement and to carry out digital laws. He asserted in a filing that the commission’s behavior had been repeatedly opaque and “undermines trust.”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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      in US Politics

      Canada and EU sign defense pact amid strained US relations and global instability

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      Canada has signed a wide-ranging defence pact with the EU, as Donald Trump and global instability prompt traditional US allies to deepen their alliances.Canadian prime minister, Mark Carney, on Monday joined European Commission president, Ursula von der Leyen, and head of the European Council, António Costa, in Brussels, where they signed a security and defence partnership, pledged more support for Ukraine, as well as joint work on issues from the climate crisis to artificial intelligence.At a cordial press conference, Carney described Canada as “the most European of the non-European countries” that “looks first to the European Union to build a better world”.Costa spoke in kind: “The European Union and Canada are among the closest allies in the transatlantic space. We see the world through the same lens. We stand for the same values.”Not mentioned was another leader in the transatlantic space: Donald Trump, whose disrespect for old allies appears to have galvanised what was an already healthy EU-Canada relationship.The US president is expected at the two-day Nato summit in the Hague starting on Tuesday, when members of the transatlantic alliance are called to pledge to spend 5% of GDP on defence.Carney, a veteran central banker turned politician, won a stunning victory in April pledging that Canada would not become the 51st US state, a proposal often floated by Trump.He said he had a mandate “to diversify and strengthen our international partnerships” and find new means of co-operation and co-ordination. The summit took place, Carney told reporters, “we might say in a hinge moment of history, a world that is more dangerous and divided, a time where the rules-based international global order is under threat”.The EU-Canada security and defence partnership opens the door to increased Canadian participation in the EU’s fledgling €150bn defence fund, known as Safe. Von der Leyen said the defence partnership meant working on joint capabilities, interoperability and joint procurement, referencing air defence. “The access of Canada to our joint procurement in the European Union, the door is open,” she said.The security pact is a Canadian version of the agreement the EU signed with the British prime minister, Keir Starmer, last month. The bloc already had similar arrangements with six other countries including Norway and Japan, but this is the first with any country in the Americas. The defence pact includes joint work on cyber, maritime and space security, arms control and support for Ukraine.Countries that have a defence and security pact with the EU can take part in joint procurement of weapons funded by the €150bn (£128bn, $173bn) Safe programme, although must negotiate a further technical agreement. Von der Leyen pledged both sides would “swiftly launch talks” on Canadian access to the joint procurement scheme.Carney said the agreement with the EU would help Canada “deliver on our new capabilities more rapidly and more effectively”. Canada has been one of the laggards of the Nato alliance: in 2024 it spent just 1.37% of GDP on defence, well below the 2% set in 2014.The two sides have a €125bn trading relationship, underpinned by the Ceta pact signed in 2016 that abolished 98% of tariffs. The agreement, however, has yet to be ratified by national parliaments in 10 EU member states, including Belgium, France, Italy and Poland, meaning elements of the deal have yet to enter into force.In advance of the meeting Carney and his wife, Diana Fox, Carney visited Schoonselhof military cemetery in Antwerp, where 348 Canadians are buried, “brave young soldiers who ventured across the Atlantic to defend the freedom of Europe”, Carney wrote on social media.The Carneys were accompanied by Belgium’s prime minister, formerly a long-serving Antwerp mayor, Bart De Wever, where they were given a tour of the ceremony and laid wreaths on behalf of Belgium and Canada. The last post was played by one of De Wever’s sons, according to local paper Het Nieuwsblad. More