Welcome to Balance of Power, bringing you the latest in global politics. If you haven't yet, sign up here. As Donald Trump presses ahead with his mission to upend the rules of global trade, European Union officials in Brussels are beginning to get nervous. The US president's weekend threat of a 30% tariff on imports from the 27-nation EU was an unwelcome surprise since negotiations — at least from the bloc's perspective — appeared to be making progress. The EU had signaled it was close to a provisional deal to lock in an across-the-board tariff of 10%, with some exemptions, by the end of last week. That's even as cars and agriculture remained key sticking points. WATCH: Bloomberg TV's Oliver Crook reports on EU ministers meeting in Brussels to discuss trade relations with the US. As it maps out its next moves, Brussels is looking to engage with other Trump targets such as Canada and Japan: European Commission chief Ursula von der Leyen will speak with Canadian Prime Minister Mark Carney today. Still, any effort to respond in sync is problematic, not least because it's unlikely to go down well in Washington. For now, the EU is attempting to keep calm as it works to strike a provisional agreement by Trump's Aug. 1 deadline. Von der Leyen said a suspension on existing steel and aluminum tariffs will be extended. But as trade ministers meet today in Brussels, the question is whether EU member states are starting to tire of appeasing Trump. While the Commission leads negotiations, members have a final say over any deal. France is pushing for a tougher response, with President Emmanuel Macron noting that the bloc's executive needs to "defend Europe's interests resolutely." With a market of 450 million people, the EU has trade heft, and a series of counter-measures it can deploy if pushed. As officials head toward the summer break, the prevailing sentiment is that Brussels should continue negotiating in good faith and refrain from using the leverage it undoubtedly has at its disposal. What happens if Trump pushes back too hard, however, remains to be seen. — Suzanne Lynch |
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