• President Donald Trump announced plans to impose tariffs on the EU and U.K., but hinted that a deal with Britain could still be reached. This follows his decision to levy a 25% tariff on imports from Canada and 10% on goods from China, triggering global market turmoil. Canada retaliated with sanctions and China vowed to challenge the tariffs at the WTO. Trump criticized the EU’s trade policies, calling the U.S. deficit with the bloc an “atrocity” and warning that tariffs could come “pretty soon.”

• While the EU braces for economic fallout, Britain may avoid the worst due to its more balanced trade relationship with the U.S. Officials in the U.K. emphasize their “fair and balanced” trading ties, hoping to sidestep harsh measures. The tariff risk will be a key topic in Brussels as EU and U.K. leaders meet amid growing economic strain. Analysts warn that EU tariffs could shave up to 0.9% off GDP, but suggest that increased military spending and energy deals with the U.S. might prevent a full-blown trade war.