Henry Foy

Tonight’s front - an EU/US trade deal, and Brits turn to VPNs to dodge new internet controls designed to protect children

Trump says he would ‘like’ to strike a trade deal with the EU [FREE TO READ] US president holds talks with European Commission head Ursula von der Leyen in his golf resort at Turnberry

💥 Trump says he would “like” to strike a deal with the EU to avert a transatlantic trade war ahead of crunch negotiations with von der Leyen

on.ft.com/41g9CvU

EU and US locked in talks ahead of key Trump meeting with von der Leyen [FREE TO READ] Leaders due to meet on Sunday in bid to avoid economically damaging transatlantic trade war

Good morning from Scotland where EU & US negotiators are still hashing out a possible trade deal to be potentially finalised by Trump & von der Leyen later

State of play: “no guarantee, still key details to be agreed. Ultimately this will come down to the two of them in a room”

on.ft.com/4f8Qbel

One potentially significant development is that commerce secy Lutnick is leading the negotiations from the US side, and appears to have definitively eclipsed USTR Greer.

That’s not necessarily a good development for the EU, given that hat Greer was seen as more open to their approaches

EU and US locked in talks ahead of key Trump meeting with von der Leyen [FREE TO READ] Leaders due to meet on Sunday in bid to avoid economically damaging transatlantic trade war

tl;dr No guarantee of a EU-US trade deal tomorrow

Negotiators have been locked in intense talks on the eve of a crunch meeting between Trump & von der Leyen in Scotland, as Brussels seeks to avoid a transatlantic tariff war

w @aimewilliams.bsky.social & @andybounds.bsky.social

on.ft.com/4l4LzqZ

Nvidia AI chips worth $1bn smuggled to China after Trump export controls [FREE TO READ] Roaring black market for US semiconductors operates despite efforts to curb Beijing’s high-tech ambitions

💥 At least $1bn worth of Nvidia’s advanced artificial intelligence processors were smuggled to China in the three months after Donald Trump tightened export controls, exposing the limits of his efforts to restrain Beijing’s tech ambitions

Tremendous @financialtimes.com reporting

on.ft.com/4kTaMEw

New EU antitrust chief selected, @bmoens.bsky.social reveals

US and EU close in on 15% tariff deal [FREE TO READ] Agreement would mirror accord with Japan

💥 EU and US close in on 15% tariff trade deal that would mirror agreement struck with Japan

By the one and only @andybounds.bsky.social

on.ft.com/4fa5N1k

Trump left a power vacuum at the UN. China saw an opportunity Beijing makes concerted effort to place officials and push its agenda in Geneva, say western diplomats

Scoop: After the US pullback, China is making a concerted effort to expand its influence throughout the UN. Story here with @henryjfoy.ft.com @lauramdubois.ft.com and Joe Leahy here:

www.ft.com/content/e289...

EU must strengthen Asian security ties despite US pressure, says Kaja Kallas [FREE TO READ] Brussels’ chief diplomat pitches bloc as more reliable partner than Washington

💥 The EU must strengthen its defence ties with Asian countries despite pressure from Trump to focus only on Europe’s domestic security, Brussels’ chief diplomat @kajakallas.bsky.social tells @financialtimes.com, pitching the bloc as a “reliable partner” in contrast with the US

on.ft.com/3TPax2o

Can Europe break free of American tech supremacy? [FREE TO READ] The continent’s dependence on US groups for digital infrastructure is causing growing concern among executives and policymakers

Can Europe break free of American tech supremacy?

The EU's dependence on US groups for critical digital infrastructure is scaring executives and policymakers - and making stark the dearth of homegrown alternatives

@bmoens.bsky.social with today's @financialtimes.com big read

on.ft.com/40Wl3c4

EU prepares list of potential tariffs on US services [FREE TO READ] Brussels also considering export controls if trade talks with Washington fail

💥 The EU is preparing a third trade retaliation package against the US including potential tariffs on services and export controls, to use if trade talks with Washington fail, officials briefed on the talks told @bmoens.bsky.social, @andybounds.bsky.social & I

on.ft.com/4eQeyNA @financialtimes.com

Brussels stalls probe into Elon Musk’s X amid US trade talks [FREE TO READ] EU was expected to finalise its investigation before the bloc’s summer recess but will now miss this deadline

The European Commission has stalled one of its investigations into Elon Musk’s X for breaking the bloc’s digital transparency rules, while it seeks to conclude trade talks with the US.

With @henryjfoy.ft.com

on.ft.com/410Q0Mb

Don't just take our word for it. Here's the verdict from GERMANY:

"A comprehensive increase in the EU budget is unacceptable at a time when all member states are making significant efforts to consolidate their national budgets. Therefore, we will not be able to accept the Commission's proposal."

Von der Leyen botches €2tn EU budget proposal with chaotic infighting Centralised and chaotic process has compromised launch of commission president’s spending plan, colleagues say

How NOT to prepare and present a budget proposal to ensure buy in from colleagues and eventually EU countries — who will have to foot the bill. With @henryjfoy.ft.com and @bmoens.bsky.social

www.ft.com/content/c88e...

Von der Leyen botches €2tn EU budget proposal with chaotic infighting [FREE TO READ] Centralised and chaotic process has compromised launch of commission president’s spending plan, colleagues say

💥Von der Leyen botches €2tn EU budget proposal with chaotic infighting, as Brussels officials & member state diplomats warn her centralised & top-down approach has compromised launch of the bloc’s biggest ever common budget

w dreamteam @paolatamma.bsky.social & @bmoens.bsky.social
on.ft.com/3IyMD8Y

Trump reaps $50bn tariff haul as world ‘chickens out’ [FREE TO READ] Only China and Canada have retaliated against US president’s tariff war

TACO? Or WACO?

How Trump earned a $50bn tariff haul without any real reactions as the world ‘chickens out’

Only China and Canada have properly retaliated against the US president’s tariff war with the EU and others delaying their potential responses again and again

on.ft.com/4lXYY58

The shift in tactics and approach from the White House comes as Trump says he is losing patience with Putin and looks for more ways to pressure the Kremlin into peace talks

Donald Trump asked Volodymyr Zelenskyy if Ukraine could hit Moscow, say people briefed on call US president encouraged Ukrainian leader to step up deep strikes on Russia

Trump asked Zelenskyy if Ukraine could hit Moscow, say people briefed on call https://on.ft.com/4nUFPmu

EU budget shake-up to shift billions to eastern states [FREE TO READ] Leaked Brussels proposal suggests new method for distributing €750bn of farm and development funds

💥 EU budget shake-up to shift billions to eastern states, as leaked Brussels proposal seen by @paolatamma.bsky.social set to be released on Wednesday suggests new method for distributing €750bn of farm and development funds

on.ft.com/40O0NJy @financialtimes.com

As EU and US inch towards a trade deal, Trump once again ups the ante with a pledge to hit European imports with a 30% tariff.

That’s a very big number if it indeed comes to pass. Or is this yet another 🌮 waiting to happen?

Donald Trump's frustration with Vladimir Putin prompts shift of tone on Ukraine US president softens his rhetoric but it is unclear whether this will result in tangible support in the war against Russia

Trump's rhetoric on Russia has hardened: he's blasted Putin's "bullshit," promised Patriots for Ukraine & vowed a "major statement" Monday. But will this mark a real pivot in his policy on the war?
Story w/ comrades James Politi @henryjfoy.ft.com @maxseddon.bsky.social:
www.ft.com/content/8260...

💥 Major scoop from our crack Brussels team -

The so-called corporate resource for Europe, outlined in a draft proposal seen by @financialtimes.com and to be unveiled next week, would apply to all companies with net turnover in excess of €50mn

@paolatamma.bsky.social @alicemhancock.bsky.social

Why Kallas’s aid deal is a major victory for Gaza and the EU [FREE TO READ] Also in this newsletter: Denmark’s plan to drive up climate investments

For months, EU capitals on both sides of the bloc's Israel-Palestine divide have been privately attacking chief diplomat @kajakallas.bsky.social for her strategy towards the conflict.

Yesterday she agreed a Gaza aid deal with Israel that has silenced those critics

on.ft.com/4lQJuQd

EU strikes deal with Israel to increase aid shipments to Gaza [FREE TO READ] Influx of food and other essentials will be co-ordinated via UN rather than controversial new aid scheme, says EU official

The EU has struck a deal with Israel for a “substantial increase” in aid deliveries to Gaza, the bloc's top diplomat @kajakallas.bsky.social said on Thursday, following weeks of diplomatic pressure on Benjamin Netanyahu’s government to unblock shipments to the battered enclave.
on.ft.com/40MJwQW

The true winners of this are of course the Brussels reporters who somehow managed to convince their newsdesk to pay for another night in a Strasbourg hotel so that they could cover this vital and unpredictable event in person

Two MEPs from the pro-VDL "coalition" voted to kick her out.

Nine MEPs from the pro-VDL "coalition" abstained.

Scores more didn't show up.

Details here www.europarl.europa.eu/doceo/docume...

175 MEPs is more than the chamber's hard-right & far-right party members and non-attached lawmakers. Which means some members from the "pro-European centrist" parties voted to oust VDL.

Handily, the vote was done by roll call!

💥 No-confidence motion against @vonderleyen.ec.europa.eu in the European Parliament fails...

175 MEPs voted to bring down the Commission President, which is quite a lot more than the number who signed the initial demand to hold the vote.

360 voted to support von der Leyen. 18 abstained.

Iran’s foreign minister: Israel’s war sabotaged diplomacy. The US can revive it [FREE TO READ] Our commitment to acting responsibly to avoid a full-scale regional war should not be misinterpreted as weakness

Iran's foreign minister writes in @financialtimes.com:

"Trump’s promise of “America First” is, in practice, being twisted into “Israel First”... The choice is America’s. Will the US finally choose diplomacy? Or will it remain ensnared in someone else’s war?"

on.ft.com/3GeCVbf