Golf course and trade talks: Donald Trump mixes business & politics in Scotland
25/07/2025
Zelensky seeks EU support while Ukraine struggles with corruption
Europe
24/07/2025
EU-China ties hit 'inflection point' and calls climate chage 'a priority'
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EU says China's links with Russia now 'determining factor' in ties
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24/07/2025
EU tariffs on chinese EVs strain trade and diplomatic ties with Beijing
Economy
24/07/2025
Spain beats Germany in Women's Euro 2025 and will play England on Sunday
Europe
24/07/2025
War in Ukraine : Russia agrees prisoner swap but no deal on ceaserfire
Europe
20/07/2025
Zelensky offers to hold new talks for ceasefire
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19/07/2025
EU launches new sanctions against Russia for more effective oil price cap
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17/07/2025
EU proposes 'most ambitious ever' budget of two trillion euros
Europe
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Euronews
19 minutes ago
- Euronews
Customs duties: What will be the impact on European consumers?
The impact of a tentative trade deal struck by the European Union and United States on European consumers will be limited, experts have said. On Sunday, the US and the EU agreed to a deal in order to avoid a trade war between the world's two largest economies, warding off US President Donald Trump's threat of 30% tariffs on most European goods if no deal was reached by 1 August. Under the preliminary agreement, around 70% of EU exports bound for the US will now be subject to a 15% tariff. The remaining 30% of goods are open to further negotiations. The EU has not put in place any tariff barriers targeting American products, so their prices will not rise in Europe. "The impact on European consumers will be limited," Agustín Reyna, Director General of the European Consumers' Organisation (BEUC), said. "Customs duties are paid by the importer. In this case, the 15% tax that the United States imposes on EU products applies to American importers. So that means that certain products could become more expensive for American citizens", Reyna told Euronews. Increase in Chinese products In the long term, Chinese products currently exported to the United States could find their way onto the European market, which could lead to lower prices in Europe. "The main effect will be a drop in demand for European products in the United States, less demand for Chinese products in the United States, and this means that these products will then try to find a market in Europe, which will generally lead to lower prices," Niclas Poitiers, a researcher at Bruegel, told Euronews. These lower prices for European consumers would however be bad news for certain businesses. "There are certain companies that are in direct competition with Chinese competitors. And for these companies, they could face stronger competition and they could also have difficulty with these lower prices. So there is a negative effect," Poitiers said. Drop in demand for EU products in the US? European companies exporting to the United States risk facing a drop in demand on the other side of the Atlantic as their products risk becoming more expensive. This could lead to a drop in their revenues and potentially jobs in Europe. "There are certain companies in certain sectors, like pharmaceuticals, for example, where there is a large proportion of exports and employment for things that go to the United States. But for most sectors, this represents a small proportion of production," Niclas Poitiers said. As a result of the deal, Trump has expressed hope that foreign companies will be encouraged to open factories in the US to avoid paying customs duties. However, the unpredictability of his agreements and the uncertainty surrounding the duration of these tariff barriers could, conversely, discourage European companies from investing in the US. 'Counterproductive' In Brussels, residents interviewed about the terms of the new agreement said they thought the deal would have little impact on their purchasing power. "I don't think it will have an impact on my daily life, maybe a little, but it will affect Americans more," said Ian, from England. He added: "I think tariffs are counterproductive. I think I'd prefer free trade and I think it's damaging for Americans to impose tariffs on everyone." Carolina, an Italian citizen, believes that the trade agreement "will have an impact on everyone in different ways, depending on the areas in which we work and the lives we lead." The EU is too highly dependent on the US and should have greater economic autonomy, she said.
Euronews
an hour ago
- Euronews
Why are European arms reaching Israel?
European dockworkers are calling on EU governments to halt arms shipments and withdraw diplomatic support for Israel. They stress that international treaties state that weapons should not be exported to war zones where human rights are violated. 'Over the past two years, we've seen an increase in the movement of weapons through civilian ports,' says Josè Nivoi, a key figure in the Genoese dockworkers' movement. 'We've filed a number of legal complaints. An excuse they often use is that they frame it as a private transaction rather than a state-to-state arms transfer — as if they were trading bananas.' For years Nivoi has collected evidence about arms cargo loads in the port as a union manager. Dockworkers accuse authorities of deliberately keeping silent about controversial shipments. 'In Italy, Law no. 185 of 1990 in principle prohibits the transit and shipment of weapons to countries at war. We are calling for civilian ports not to be used to move arms.' In 2024, Italy announced that it had suspended shipments of military equipment to Israel, while honouring contracts signed before 7 October 2023. This translates into over €6 million in weapons, ammunition, maintenance and spare parts. Facts and figures on Israel's weapons' imports Israel imports almost 70% of its arsenal from the US, the world's largest arms exporter. Germany is Israel's second supplier. Since 7 October 2023, it has exported 485 million euros worth of weapons. Italy ranks third, supplying less than 1%. The UN Arms Trade Treaty and the European Common Position state that human rights violations and war crimes should prevent such sales. The EU Council Common Position is legally binding but it lacks enforcement. Member States can interpret it differently. Following Israel's war on Gaza, Italy, Spain, Belgium and the Netherlands have halted or restricted exports. There's little scrutiny over Hamas's weapons, mostly from Iran, which has not signed the UN arms trade treaty. Why does Israel receive military support from EU countries? The EU recently found that Israel is breaching its human rights obligations in Gaza. So why does Israel still receive military support from European countries? Giorgio Beretta, one of the most authoritative Italian analysts on the arms trade and a long-standing voice of the Italian Peace and Disarmament Network, explains that treaties are voluntary and then each country must commit to them. 'The regulations are sound. The problem lies in their enforcement, because there is always a wide margin of discretion,' says Giorgio Beretta of the Permanent Observatory on Small Arms, OPAL. Beretta says the information provided to national governments, which are responsible for ensuring weapons are not used to commit human rights violations, is often too vague. 'A general category might be indicated, such as 'aircraft' or 'naval vessels', but there's a big difference between aircraft used for ground attacks and aircraft used for rescue. By the time a parliament reviews exports, the weapons have often already been delivered.' In May 2025, the EU announced a review of the EU Israel Association Agreement after finding Israel in breach of the trade deal's human rights clause, citing violations in Gaza and the West Bank. By July, the EU had postponed any actions, let alone any sanctions, including a possible arms embargo — yet again exposing its deep-rooted divisions over Israel.
Euronews
2 hours ago
- Euronews
Mercedes predicts €360mn hit from US tariff turmoil and China slowdown
US tariffs will knock over €360 million off the bottom line for German carmaking powerhouse Mercedes-Benz, with the company predicting 2025 sales well below last year's total. According to an earnings update published on Wednesday, second-quarter profits have already fallen 10% compared to last year and are expected to drop further by the end of 2025. EBIT (earnings before interest and taxes) and earnings per share have both fallen by a staggering 68%. Quarterly sales in China — normally Mercedes' biggest market — also fell nearly 20 % year-on-year as domestic electric car brands got cheaper and more popular. To soften the hit, Mercedes plans to lean even harder on its top end models and keep costs tight. In other words, it hopes that bigger margins on luxury vehicles will offset the smaller number of cars it expects to sell. 'Mercedes-Benz Group now sees Group revenue significantly below the prior-year level based on lower sales expected at Mercedes-Benz Cars and Mercedes-Benz Vans,' the company said in a statement. Trump tariffs For most of this year, European-made cars were imported into the US at a tariff of 27.5%, but after the most recent deal struck between European Commission President Ursula von der Leyen and US President Donald Trump, they will be imported at 15% starting on Friday. Europe's automobile sector directly and indirectly employs a whopping 13.8 million people, providing one in every 16 EU jobs. This makes it the backbone for a large share of household incomes across the bloc, especially in the regions where auto manufacturing hubs are located. Mercedes-Benz CEO Ola Källenius said the firm would have to navigate the altered political environment in the near future by selling more luxury cars and investing in innovation. 'We're adapting to new geopolitical realities by using our global production footprint intelligently and by executing our Next Level Performance programme, which goes beyond efficiency measures, to increase the resilience of our company,' CEO Ola Källenius said in a statement. Specifically, the mid-year report highlighted the pivot to research and development (R&D) to create new products and technologies. Carmakers pour about €73 billion annually into R&D, more than any other private sector in Europe. Their breakthroughs then often spill into other sectors, such as batteries, robotics and AI. 'The best response is to stay on course to deliver desirable and intelligent products, while keeping a tight grip on costs,' Källenius continued. Mercedes cars have a strong brand identity and loyalty among consumers who were drawn to their robust engines and high-end, sleek designs, citing reliability and durability. The company is a top-five player in the global carmaker ranking in terms of revenue, along with two other German companies, Volkswagen and BMW. In the luxury market, it ranks second globally behind BMW. Motor-vehicle ownership taxes alone inject roughly €428bn a year into EU treasuries, a revenue stream that is critical for public services and larger than the entire annual EU budget.
