Tariff anxiety in Brussels

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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

Global Must Reads

Australian Prime Minister Anthony Albanese touted deepening cooperation with China and promoting sustained development of bilateral relations during a visit to Shanghai yesterday. Nvidia CEO Jensen Huang, meanwhile, told CNN that the US government shouldn't be concerned that the Chinese military will use his company's products to improve its capabilities, because the technology "could be, of course, limited at any time."

Australia opposes any unilateral moves to change the Taiwan Strait status quo, Albanese said as he began his China trip. His comments came after the Financial Times reported that the US is pressing Australia and Japan to clarify their roles if Beijing invades Taiwan, and to support Washington's efforts to counter what it views as China's growing assertiveness in the Indo-Pacific region.

Albanese in Canberra on June 10. Photographer: Hilary Wardhaugh/Bloomberg

China ended the first half with a record trade surplus of about $586 billion, with exports to the 10 nations in the Asean group soaring by 17% compared with a year earlier. Diversification away from the US helps explain the resilience of Chinese factories, supporting a slowing domestic economy during one of the most turbulent periods in international trade.

Trump said the US will send more Patriot air-defense batteries to Ukraine, as he prepares to give a "major" statement on Russia today. Macron pledged that France will make an "historic" effort to increase defense spending to counter accelerating threats to freedom in Europe and the risk of war, while Russian Foreign Minister Sergei Lavrov said North Korea had affirmed its "clear support" for the Kremlin's invasion of Ukraine.

Ukrainian servicemen walk past a Patriot air-defense system at an undisclosed location. Photographer: Sergei Supinsky/AFP/Getty Images

South Africa's president suspended his police minister, a key ally, and announced a commission of inquiry to probe accusations that he sabotaged an investigation into political assassinations. Cyril Ramaphosa had been under intense pressure to act after the explosive allegations highlighted concerns that the nation has yet to root out the corruption among senior officials that has stunted its investment and economic growth.

The world's most powerful finance ministers will gather in South Africa without the presence of US Treasury Secretary Scott Bessent for the second time this year, undermining the agenda of the Group of 20.

Trump and his allies have seized upon a new way to criticize the head of the US central bank Jerome Powell: his handling of an expensive renovation of the Federal Reserve's headquarters.

Most Thais want Paetongtarn Shinawatra to quit or dissolve parliament to ease political turmoil following her suspension as prime minister, an opinion poll found.

Check out this piece from Michelle Ma on how Trump's $3.4 trillion fiscal package is creating opportunities for segments of the energy and climate industries that had fallen out of favor or struggled to grow.

Sign up for the Washington Edition newsletter for news from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television.

Chart of the Day

UK businesses are dialing back hiring for jobs that are likely to be affected by the rollout of artificial intelligence, a McKinsey analysis found. While vacancies have declined across the board as employers cut costs in the face of sluggish growth, postings for jobs expected to be significantly hit by AI — like white-collar roles in tech or finance — saw almost twice the decline of elsewhere in the three months to May when compared to the same period in 2022.

And Finally

Thailand became the first Southeast Asian nation to decriminalize cannabis in 2022, triggering a "green rush" and the emergence of thousands of dispensaries in urban centers. Agricultural communities in the lush north have perhaps benefited most, but the more than $1 billion-a-year industry has lately been pitched into chaos after the government announced a legislative backtrack in late June, moving to restrict cannabis use to medicinal purposes.

Outdoor cannabis cultivation is more common in the north of the country. Photographer: Gianmarco Di Costanzo

Thanks to the 33 people who answered Friday's quiz and congratulations to Gunilla Edvardsson, who was first to correctly name South Africa as the country whose president faces a fresh government crisis after a senior police official accused a cabinet minister of interference in an investigation into political assassinations.

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