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Good morning. News to start: German defence minister Boris Pistorius has said it\u2019s time for European arms companies to stop complaining and start delivering, telling the Financial Times that Berlin\u2019s military spending splurge meant the industry had no more excuses for slow production.<\/p>\n
Today, our reporters bring you up to speed on a busy weekend in the EU-US trade stand-off as Brussels shrugged off Donald Trump\u2019s latest threat, and Laura joins our tech correspondent to report on new guidelines to protect kids online being unveiled today.<\/p>\n
Hold fire<\/h3>\n
To retaliate, or not to retaliate \u2014 that is the question occupying EU trade ministers today, as they meet in Brussels to discuss Donald Trump\u2019s tariff war, write <\/strong><\/em>Andy Bounds<\/strong><\/em> and <\/strong><\/em>Alice Hancock<\/strong><\/em>.<\/strong><\/em><\/p>\n Context: The US president upped the pressure on the EU on Saturday by announcing 30 per cent \u201creciprocal\u201d tariffs from August 1. Months of negotiations between the US and the EU aimed at securing a trade deal have so far only resulted in raising the tariff threat from the original 20 per cent.<\/p>\n In response to the latest increase, European Commission president Ursula von der Leyen yesterday said that plans to hit \u20ac21bn of annual US imports with counter-tariffs tomorrow would be delayed.<\/p>\n She said the EU would keep talking until next month\u2019s deadline. <\/p>\n Two diplomats said a second retaliation package, expected to cover \u20ac72bn of annual US imports, would be sent to member states for deliberations today.<\/p>\n EU ambassadors met yesterday to be briefed on the talks, and were largely supportive of the commission\u2019s current approach, according to people familiar with the discussions.<\/p>\n Austrian Chancellor Christian Stocker said Trump\u2019s announcement was \u201cregrettable\u201d, adding: \u201cthe EU will respond in a united manner.\u201d<\/p>\n But some governments are growing impatient with the passivity. <\/p>\n \u201cIt\u2019s quite embarrassing how timid and powerless we are being in this process,\u201d said one senior EU diplomat. \u201cWe were told it would be a negotiation between partners but it\u2019s basically us sitting and waiting for [Trump] to make a decision.\u201d<\/p>\n \u201cCountermeasures will have to come if negotiations fail,\u201d another said.<\/p>\n One unspoken fear is that Trump would retaliate in other ways, for instance cutting US arms sales to Ukraine or pulling troops out of Europe. \u201cHe has escalation dominance,\u201d said a third EU diplomat.<\/p>\n \u201cThe context of the war in Ukraine inevitably limits the scope for action and everyone is facing the challenge of dealing with a mad rhino,\u201d said Ignacio Garcia Bercero, a former commission official and fellow at the Bruegel think-tank.<\/p>\n Business leaders and agricultural groups have also lobbied against tariff measures that could prompt Trump to respond with even higher levies. One said they would prefer the certainty of fixed tariffs to constant changes (though they expected 10 per cent, rather than the latest figure).<\/p>\n As ministers trickle in for today\u2019s meeting, expect public declarations that the EU is ready to respond. But in private, most will endorse the commission\u2019s cautious moves and pray the bond and stock markets come to their aid.<\/p>\n The Netherlands is among the fastest European countries to electrify critical parts of the economy, but grid bottlenecks are contributing to high electricity costs.<\/p>\n Five European countries will start testing a new age verification app to better protect children online, write <\/strong><\/em>Barbara Moens<\/strong><\/em> and <\/strong><\/em>Laura Dubois<\/strong><\/em>.<\/strong><\/em><\/p>\n Context: The EU\u2019s tech chief Henna Virkkunen has made the digital protection of minors a key focus. Several tech companies, such as Meta and TikTok, are already under investigation for their potentially addictive designs. <\/p>\n Today, Virkkunen and Denmark\u2019s minister for digital affairs Caroline Stage will announce new guidelines for protecting minors online, as well as a prototype for an age verification app. <\/p>\n Denmark, France, Italy, Spain and Greece will take part in the pilot for the age verification app, according to people familiar with the launch.<\/p>\n The app, a precursor to the EU\u2019s digital identity wallet due in 2026, will allow users to verify their age without disclosing personal information to platforms. The EU\u2019s idea is to make this the \u201cgold standard\u201d for age assurance online, as it doesn\u2019t allow tracking individual users.<\/p>\n In addition to that, the guidelines to be published today will provide recommendations on addressing addictive design of online platforms, cyberbullying, unwanted contact from strangers and harmful content, according to a draft seen by the FT.<\/p>\n Virkkunen has been urging tech companies to voluntarily adopt measures to better protect children rather than wait for governments to step in. \u201cPlatforms have no excuse to be continuing practices that put children at risk\u201d, Virkkunen said.<\/p>\n Nato secretary-general Mark Rutte travels to Washington for a two-day visit.<\/p>\n<\/li>\n EU trade ministers meet.<\/p>\n<\/li>\n EU agriculture and fisheries ministers meet.<\/p>\n<\/li>\n<\/ol>\n Free Lunch<\/strong> \u2014 Your guide to the global economic policy debate. Sign up here<\/p>\n The State of Britain<\/strong> \u2014 Peter Foster\u2019s guide to the UK\u2019s economy, trade and investment in a changing world. Sign up here<\/p>\n<\/div>\n<\/div>\n<\/div>\n Are you enjoying Europe Express? <\/em>Sign up here<\/em> to have it delivered straight to your inbox every workday at 7am CET and on Saturdays at noon CET. Do tell us what you think, we love to hear from you: <\/em>europe.express@ft.com<\/em>. Keep up with the latest European stories <\/em>@FT Europe<\/em><\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\nChart du jour: Disconnected<\/h2>\n
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<\/picture><\/figure>\nVerified<\/h3>\n
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