Photo : The Financial Times
By Merin Treesa Alex
REGIONAL
Trump announces 30 per cent tariff from August
On 12 July, Deutsche Welle reported that President Trump had announced a 30 per cent tariff on all goods from the EU, set to take effect on 01 August. This announcement followed similar tariff threats against Canada and Mexico, with tariff rates of 35 per cent and 30 per cent, respectively. Trump justified the move by stating that the EU’s trade surplus with the United States, claiming that the tariffs were necessary to correct the trade deficit between them. He added that if EU companies began manufacturing in the U.S., the tariffs would be lifted. In response, the EU signalled its readiness to retaliate and warned that, if no agreement were reached, it would impose proportionate countermeasures. EU leaders, including Ursula von der Leyen and Emmanuel Macron, expressed strong disapproval of the US decision but stated that they remained open to negotiations. The EU was also considering invoking the Anti-Coercion Instrument, which could be used to restrict U.S. companies’ access to the European market in response. (Karl Sexton, Roshni Majumdar, “Trump announces 30% tariffs on EU goods as trade talks stall,”Deutsche Welle , 12 July 2025)
EU readies with retaliatory measures in response to the US tariff
On 12 July, Ursula von der Leyen, EU Commission President, said that the bloc is working towards a deal by 01 August and is ready to take relevant steps to safeguard the EU’s interests. This was in response to the news regarding the US planning to impose a 30 per cent tariff on all EU goods going into the US market, this tariff rate significantly higher than the initially proposed tariff. US President Trump announced in his inaugural speech about imposing tariffs and taxes on foreign countries to protect the US citizens. The initial plan for the reciprocal tariff was announced on 13 February. As of now, from 02 April when he announced the Liberation Day tariffs, pausing the higher rates immediately while at the same time maintaining the 10 per cent tariff on all global imports. The 25 per cent tariffs on aluminum and steel products took effect from March. The trade negotiations in between and the imposition of new tariffs to Canada and Mexico, with similar letters announcing the renewed tariffs to the EU, highlight the ongoing threat of a higher tariff on EU products. French President Emmanuel Macron announced that if no deal is made after the continued efforts, it would impose countermeasures, which can limit the companies' investments and trade. He said that France is in support of the EU Commission in this. Additionally, the German economy minister said that the tariffs would impact the exporting companies in the EU mostly, which would have a bad impact on the economy and the consumers, so a practical decision has to be made at the earliest. Italy’s President Giorgia Meloni also released a statement on the same. She said that it makes no sense to clash as both sides want the same goal strengthening the West as a whole and it is important to focus on negotiations in order to avoid differences.(Roshni Majumdar, “EU vows response to Trump's 30% tariff announcement,” Deutshe Welle, 12 July 2025)
Regional economic output reduced by one per cent due to heatwaves finds ECB
On 13 July, the European Central Bank (ECB) emphasised the growing economic and inflationary risks posed by the extreme heatwaves faced in Europe. The ECB research findings state that the summer heatwaves reduce regional economic output by one per cent, with the impact deepening to 1.5 per cent in two years. The earlier assumption of quick recovery was proved wrong, the heatwaves can have prolonged economic effects, particularly in warmer regions. The report suggests that although investments in climate adaptations, such as air conditioning, increase, they do not boost productivity. As per the report, productivity falls by up to 10 per cent due to the less productive nature of such capital. The research also reveals a rise in food prices during extreme summer weather. The 2022 heatwave increased food inflation by 0.7 per cent in Europe. This mainly affects key food commodities like olive oil, coffee, and cocoa, adding pressure on central banks trying to predict inflation. The hottest regions in Europe suffer the most, as extreme weather brings everything to a standstill. European summer temperatures could rise by six per cent by 2100 under current climate policies, and the food inflation caused by the 2022 heatwave could rise to 1.8 per cent by 2060. The ECB warns that these effects will worsen in the future. (Miles Parker, “Has the heatwave been driving you nuts?” European Central Bank, 13 July 2025)
EU proposed to cut green house gas emissions by 90 per cent by 2040
On 11 July, the EU is working to finalise a 2040 climate goal aimed at reducing greenhouse gas emissions by 90per cent compared to 1990 levels. The proposal includes a provision allowing countries to use international carbon credits, offering some flexibility in meeting targets. Denmark currently holds the EU’s presidency, and is leading the negotiations and also pushing to reach a deal by September, in line with the EU’s need to submit a 2035 climate target to the UN. While most EU member states support the decision, a few states, including Poland, Hungary, and the Czech Republic, have expressed reservations over the economic concerns and the tight deadline. They argue that such a major decision needs more time and clarity, particularly regarding how the proposed flexibilities for companies will function, as the details remain unclear. As the EU faces mounting climate impacts like heatwaves and wildfires, negotiations are intensifying to strike a deal. (Stine Jacobsen , Kate Abnett, “EU sets sights on climate target deal by September,” Reuters, 11 July 2025)
Euronews reports Atlantic route as the deadliest for migrant deaths
On 11 July, a total of 201 West African migrants were intercepted by Senegal’s navy earlier this week, including women and children of various nationalities. The operation was carried out by marines based in Foundiougne, in the Fatick region of western Senegal. According to the army, 69 individuals were stopped on land, the remaining 132 were intercepted at sea aboard a small wooden boat in the Saloum delta, which has increasingly become a popular departure point for migrants. This action comes amid a sharp rise in Atlantic migration toward Spain’s Canary Islands, with nearly 47,000 arrivals recorded in 2024 alone. The route remains one of the deadliest in the world, with the death toll estimated to be in the thousands this year, according to a migrant rights group. The migrants flee their countries due to poverty or violence. Since last year, there has been an increase in migrants from far-off countries such as Pakistan, Bangladesh, Yemen, Syria, and Afghanistan on small boats to reach European islands. ( Gavin Blackburn, “Senegal's navy intercepts 201 African migrants on deadly Atlantic route to Europe,” Euronews, 11 July 2025)
POLAND
Anti immigration and racism spread across could isolate communities says Prime Minister
On 13 July, Poland’s Foreign Minister Sikorski condemned racism and anti-Semitism, emphasizing that such attitudes are harmful to the country. He stated that anti-immigration panic incites deep-seated hatred, and Holocaust denial threatens to isolate Poland from the community of civilized nations. His remarks followed controversial claims by far-right MEP Grzegorz Braun, who asserted that the gas chambers at Auschwitz were a lie. Sikorski defended the legacy of Witold Pilecki, the Polish officer who voluntarily went to Auschwitz to document its atrocities. He also highlighted the recent incidents in Zamość, where international artists and festival attendees were subjected to insults, alongside reports of a so-called “refugee invasion.” Calling for restraint, Sikorski stressed that zero tolerance for racism and anti-Semitism and spoke against indifference. He further addressed the escalating tensions at the Polish-German border, where citizens patrolling have been chanting anti-immigrant and anti-German slogans following the introduction of border controls in early July. While confirming with Poland’s sovereign right to secure its borders, Sikorski condemned the rise of hateful views and expressed pride in Poland’s longstanding tradition of hospitality.(Katarzyna-Maria Skiba & Andreas Rogal, “Polish Minister of Foreign Affairs Sikorski: Anti-immigrant hysteria harms Poland,” 13 July 2025)
SLOVAKIA
Government active in talks with EU to end Russian gas supplies deal
On 12 July, Slovakia’s Prime Minister Robert Fico said the government aims to reach a deal with its European partners on Russian gas supplies by this week, which would enable the approval of the EU’s 18th sanctions package on Russia. Slovakia has so far vetoed the package due to concerns over the proposed phase-out of all Russian fossil fuels by 2028, fearing it would cause economic harm. It depends heavily on Russian gas through a long-term contract with Gazprom, which runs until 2034. Fico stated he is seeking legal guarantees to protect Slovakia from any potential breaches of this agreement. He also emphasized the need for a compromise, acknowledging it may not be a complete victory for Slovakia. Fico has held talks with Germany’s Chancellor Friedrich Merz, indicating Slovakia would lift its veto if an agreement on the gas ban is reached. The latest EU sanctions, which were unveiled earlier this week, included blacklisting additional Russian banks, extending the transaction bans to entities helping circumvent these sanctions, targeting Russia’s sovereign wealth fund, and banned the use of the Nord Stream pipelines, which Germany has ruled out from reopening after the war. (Slovakia aims to reach deal with EU on ending Russian gas supplies by Tuesday, Fico says,” Euronews, 12 July 2025)
SPAIN
Two missing in the torrential rains and floods in Catalonia and Cubelles
On 13 July, Deutsche Welle reported on the torrential rains and flooding that hit Catalonia, which is the northeastern part of Spain. Two were reported missing near Cubelles. The torrential rains were caused by an isolated depression at high levels, DANA storms. Firefighters searched for the two missing along the Foix River. Spanish Prime Minister Pedro Sánchez urged great caution and asked people to avoid unnecessary travel in 10 northern and eastern regions on high alert. Barcelona faced major disruptions, including flooded roads, a hospital forced to close, suspended train services that stranded hundreds, and a US -bound flight that returned due to hail damage. Catalonia and its neighboring regions remained under a red weather alert. This storm follows last October’s deadly floods in Valencia which rported 225 people dead.(Karl Sexton, “Spain: Two missing as heavy rains hit Catalonia,” Deutsche Welle, 13 July 2025)
THE UK
GDP drops by 0.1 per cent amid trade tensions and surge in inflation
On 11 July, DW reported on the UK’s GDP which declined for two consecutive months, with a 0.3 per cent drop in April followed by a 0.1 per cent fall in May, based on data from the Office for National Statistics (ONS). This economic downturn adds pressure on Prime Minister Keir Starmer and the new Labour government, which is already grappling with economic uncertainty amid US tariffs and rising inflation. The contraction was largely driven by notable declines in production and construction, particularly in oil and gas extraction, car manufacturing, and the pharmaceutical sector. In response, Finance Minister Rachel Reeves called the figures “disappointing”, she also emphasised that the government is determined to revive growth through investment in the NHS and national infrastructure, while also pledging to cut down red tape to increase business activity.(Chi-Hui Lin, “UK GDP unexpectedly falls for second month in a row,” Deutsche Welle, 11 July 2025)
INTERNATIONAL
EU-Southern Neighbourhood ministerial meeting aims to deepen cooperation and EU-Israel relations
On 11 July, Euronews reported that the foreign ministers of Israel and Palestine are to attend the EU-Southern Neighbourhood ministerial meeting, scheduled later this week. This meeting marks the first high-level joint participation since the 07 October Hamas attack and the subsequent Israeli military attack in Gaza. The meeting will have ministers from Israel, Palestine, Syria, Libya, and other southern Mediterranean partners. The meeting aims to deepen EU cooperation across the region, rooted in the 1995 Barcelona Declaration, which promotes peace and stability. The meeting was originally planned for June but got postponed due to the continued conflict in Gaza. The Palestinian representative intends to highlight the humanitarian crisis in Gaza and also ask the officials to take measures against Israel. The representatives also hope to raise the issue over the withholding of EUR 2.1 billion in tax revenues by Israel, which worsens their financial situation. The forum offers a more closed and intimate setting than the UN for dialogue, especially at a time when the EU is considering taking restrictive measures against Israel for breaching the EU–Israel Association Agreement, which includes a possible suspension of agreements or even halting political dialogue. The EU foreign ministers are set to review a list of 10 possible actions against Israel on 15 July, which would require approval from all 27 member states.(Shona Murray & Maïa de La Baume & Jorge Liboreiro “Exclusive: Israel and Palestine to join high level Brussels meeting despite tense EU relations,” Euronews, 11 July 2025)