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Did Big Tech just outfox the China hawks?

Did Big Tech just outfox the China hawks?

Politico5 days ago
One of the most dizzying pivots in American policy toward China happened just last week, when two chipmakers — Nvidia and AMD — said that Donald Trump's White House had effectively given its blessing to let them sell high-end artificial intelligence chips to China.
Just in April, the White House had banned sales of Nvidia's H20 and AMD's MI308 chips to China. Recent administrations spent years trying to contain China's ambitions in tech — and particularly in AI. My colleague Gabby Miller called it 'policy whiplash' in her Morning Tech newsletter on Thursday.
China hawks in Congress are up in arms, worried that the H20 compute power could enable the country to develop state-of-the-art AI models. Republican Rep. John Moolenaar (R-Mich), chair of the House China Committee, sent a letter to Commerce Secretary Howard Lutnick on Friday insisting on a briefing about the decision. Democratic ranking member Raja Krishnamoorthi said the move would 'hand our foreign adversaries our most advanced technologies.'
(In fairness, these are not the most advanced technologies — Nvidia's highest-end AI chips are still illegal to export to China.)
What's really going on here? Is this just Trump being strategically unpredictable in the middle of a stuck trade negotiation with China? Or is he taking the industry's side against the national-security community?
Possibly either. Or both. But to longtime observers, this is also an attempt to take another position in a years-long argument: If countries are going to develop AI, the thinking goes, it's far better to have it built on American tech.
Proponents of the H20 exports contend that they further national security by keeping the world dependent on the U.S.'s AI hardware, as well as fortifying its market power. During a CNBC interview on July 15, Lutnick argued that Nvidia's sales get China's developers 'addicted to the American technology stack.'
This is also the argument Nvidia CEO Jensen Huang has been making, according to the New York Times.
Nvidia told DFD in a statement, 'America wins when the world builds on the U.S. technology stack. The Government made the best decision for America, promoting U.S. technology leadership, economic growth, and national security.' AMD did not respond to an inquiry.
Patrick Moorhead, a former VP at AMD, said a strong market position is important to keeping Chinese competitors at bay. 'Any dollar that's not going to Nvidia is going to Huawei,' he told DFD.
Part of the policy tension is simply over risk tolerance, Moorhead said. The national-security community — especially military and defense officials — typically 'just want to take all risk off the table,' he said.
Businesses, of course, thrive on a measure of risk — especially when they see big gains at stake. This was clearly in evidence when Trump brokered deals to send tens of thousands of high-end chips to Gulf countries in May, over objections that it would open the door to chip smuggling.
'The White House seems to be prioritizing the economic gains [...] and they have a philosophy about why that won't create challenges on the national security side,' said Michael Horowitz, a deputy assistant secretary of defense under Biden who had concerns that the exports could be harmful in the long term. 'Given the way that China aggressively harvests American technology to improve its military, there are reasons to be nervous.'
A White House official told DFD on background that the administration sees its application process for selling chips like H20, which Biden did not restrict, as creating a middle path that promotes the industry while addressing serious national security concerns.
In the classic Washington game of 'who's winning,' it looks like this round goes to the chipmakers over the hawks. AI and chip companies have been 'been pretty good at convincing the president to take some measure of risk,' said Moorehead.
Nvidia CEO Jensen Huang seems to have masterminded this particular about-face. He's been in regular contact with White House allies to protest against export controls, and reportedly convinced Trump to change course on Nvidia's chip sales to China in early July.
National security wonks aren't so sure this will work to keep China dependent on America's tech stack. China has been investing more than any other geographic region on building up domestic manufacturing capabilities since 2023. 'Even if China has access to U.S. chips and architectures, they're strategically aware enough to know that they shouldn't rely on a competitor for a technology this vital,' Janet Egan, a senior fellow at the Center for a New American Security, told DFD.
'At the end of the day, Chinese firms are going to be actively trying to create alternative ecosystems regardless,' she said.
The industry's initial victories on export controls aren't set in stone. Since Trump set the H20 restrictions in the first place, only to revoke them, he could easily pull another 180 in the future. In fact, national security concerns are reportedly holding up UAE chip deals.
Plus, the industry-hawk dichotomy can be a bit reductive when it comes to this debate. Chris Miller, a Tufts University historian who wrote the book 'Chip War,' told DFD that chip exports can help or hurt different parts of the tech industry — Anthropic notably called for strong controls on advanced microchips in April.
'Obviously chip companies, at least in the short run, benefit from selling more chips, but then AI companies in the U.S. probably lose out by having stronger Chinese competitors,' he said.
In a storyline as complex as chips, China and AI, perhaps it's more accurate to look at Big Tech as a collection of different industries, whose interests don't always align. On the question of the new H20 exports, Miller said: 'It depends on which industry you're talking about — you get different answers.'
China-linked hackers breach Sharepoint
China-backed groups hacked Microsoft's SharePoint service, the American tech giant said Tuesday, as POLITICO's John Sakellariadis and Dana Nickel report. They add the U.S. has yet to name a culprit.
The hack hit some 100 targets, which began to notice the security breach last week. Microsoft named three groups based in China — Linen Typhoon, Violet Typhoon and Storm-2603 — as being responsible for the hack. It added that Linen Typhoon and Violet Typhoon are Chinese state actors. Internet researchers told POLITICO that the cyberattack exploited a SharePoint flaw to remotely access servers belonging to dozens of organizations around the world.
Microsoft said in a statement that it was 'coordinating closely with [the Cybersecurity and Infrastructure Security Agency], [Department of Defense] Cyber Defense Command, and key cybersecurity partners around the world throughout our response.' The company's threat intelligence team also recommended that SharePoint customers install its latest security updates and antivirus programs.
A U.S. official told POLITICO that government investigators suspect the hackers were able to infiltrate four to five federal agencies. Officials told John and Dana they had not yet determined how or whether China was involved in the attack.
The Chinese embassy in Washington did not respond to POLITICO's inquiries.
Congress wants answers on AI.gov
Senate Democrats are pressing the Trump administration on the development of an AI chatbot known as AI.gov for federal employees.
POLITICO's Morning Tech team obtained a letter that 15 Senate Democrats sent to the Department of Government Efficiency initiative and the General Services Administration inquiring about AI.gov. The letter, helmed by Sen. Brian Schatz (D-Hawaii), requests information on the application's use cases, data privacy safeguards and protections against bias.
'Poorly planned AI deployments can risk disrupting workflows and fostering distrust, especially when workers are not adequately trained or consulted,' the letter reads.
The outlet 404 Media was the first to report on the government's AI.gov efforts in June. Based on information from GitHub and audio from internal meetings, 404 Media found that federal officials had considered incorporating AI coding agents and an analytics feature to track AI use across government teams.
post of the day
THE FUTURE IN 5 LINKS
Stay in touch with the whole team: Aaron Mak (amak@politico.com); Mohar Chatterjee (mchatterjee@politico.com); Steve Heuser (sheuser@politico.com); Nate Robson (nrobson@politico.com); and Daniella Cheslow (dcheslow@politico.com).
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"Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." Some headlines from Trump on tariffs this morning Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. 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The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Trump tariffs wreaking havoc in Brazil's citrus belt Reuters reports: Read more here. SCMP reports China-US another 90-day tariff extension The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. The South China Morning Post (SCMP) reported that "Beijing and Washington are expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday." More from the Hong-Kong-based SCMP: Read more here. Lutnick: EU has to offer Trump 'a good enough deal' to avoid 30% tariffs As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. As President Trump prepares for a planned meeting about tariffs with European Commission President Ursula von der Leyen, Commerce Secretary Howard Lutnick said Sunday that the European Union has to open its markets for US exports if it wants to convince Trump to reduce the 30% tariff he's threatened to put in place August 1. Reuters reports Lutnick said the EU appeared to want to make a deal: On Friday, Trump said the odds of a trade deal with the EU were about "50-50," even as negotiators from both sides expressed optimism. Read more here. LG says consumers rushed to buy appliances ahead of tariffs Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Tariffs remain a key concern for South Korean appliance maker LG Electronics ( The company said that if President Trump's blanket tariffs take effect on Aug. 1, it will adjust prices and move some production to its plants in Mexico and the US. LG produces its products worldwide, particularly in South Korea, China, and Vietnam. On Aug. 1, imports from South Korea face a 25% tariff, while those from Vietnam face a 20% tariff. Imports from China are estimated to face tariffs of roughly 50%, though that could change after US and Chinese officials meet in Sweden for the next round of trade talks. According to LG, consumers rushed to purchase items in the first half of the year to avoid tariffs. Still, the company's net profit fell 3.1% in Q2 as operating costs increased. "Some consumers have been rushing to make purchases before the tariffs take effect," an executive said on the earnings call. "In the first half of 2025, we achieved approximately 3% growth year over year, higher than the market demand with new product launches and efficient sales operations, continuing to strengthen our market presence." But that pull-forward in demand could signal weakness ahead in the months to come if trade tensions escalate again. "A rise in product costs driven by the 50% tariff on steel and reciprocal tariffs that are set to be applied in the latter half of the year could translate into greater uncertainties for the market price," the executive said. "Additionally, shifts in the US government's trade policies and weakening consumer sentiment cast doubt on the demand outlook for home appliances." This isn't the first time LG has grappled with US protectionist policies. In 2018, during Trump's first term, washing machine prices rose when Trump targeted the industry with tariffs. Japan says $550 billion investment could finance Taiwanese chipmaker in US The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. The $550 billion President Trump said Japan gave to the US "to lower their tariffs a little bit," could be used to help finance a Taiwanese chipmaker building plants in the US, the Associated Press reported Saturday. Trump on Thursday called the $550 billion "seed money" and that 90% of profits from the money invested would go to the US. "It's not a loan or anything, it's a signing bonus," Trump said. Read more here. More cracks form in the US-Japan trade agreement We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). We detailed earlier (keep scrolling) some initial, if gentle, pushback from the Japanese side on the US portrayal of the countries' trade deal. The Financial Times has a good, detailed look at some of the "cracks" forming: Read more here (subscription required). EU head to meet with Trump this weekend in bid to clinch deal Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Bloomberg reports that European Commission President Ursula von der Leyen will meet with President Trump this weekend as he travels to his golf club in Scotland in a bid to secure a trade deal. The meeting will come as the two sides race to secure a deal ahead of next Friday — Trump's self-imposed deadline for 30% tariffs on EU goods to kick in. On Friday, Trump put the odds of a deal at "50-50." From the report: Trump: 'We haven't really had a lot of luck with Canada' President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: President Trump on Friday expressed pessimism on US trade negotiations with Canada, suggesting he may simply impose threatened 35% tariffs on Canadian goods not covered by the existing US-Canada-Mexico trade agreement. "We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation," he said. More from Reuters: Boston Beer Company says strong profits helped brewer absorb tariff costs The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." The Boston Beer Company (SAM) continues to feel the effects of President Trump's tariffs, but a strong quarter of sales and profit is helping the Samuel Adams brewer absorb some of those cost increases. Boston Beer expects tariffs to add about $15 million to $20 million in costs for the full year. Previously, it modeled tariff costs of $20 million to $30 million. Expect the company to raise prices by 1% to 2% to offset some of the costs as well, executives said. Boston Beer did see tariffs negatively affect its gross margin toward the end of the second quarter, but it benefited from improved brewery efficiencies. For the second quarter, the company reported profits of $5.45 per share on revenue of $625 million, versus estimates for earnings of $4.00 per share on $588 million, according to S&P Global Market Intelligence. "Right now, I think we're very happy with the performance," Boston Beer CEO Michael Spillane said on the earnings call. "Not only that, but that's allowed us to offset some of the tariffs that we've seen so far." Some headlines from Trump on tariffs this morning Via Bloomberg: Via Bloomberg: Trump: US will sell 'so much' beef to Australia President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. President Trump said on Thursday that the US will sell "so much" beef to Australia, following Canberra relaxing import restrictions. Trump added that other countries who had refused US beef products were on notice. Reuters reports: Read more here. World's No. 3 automaker Kia takes $570M tariff hit in Q2 Reuters reports: Read more here. Reuters reports: Read more here. Puma shares dive after warning of full-year loss, US tariff impact Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. Puma ( shares fell 17% on Friday after the sportswear brand said that it now expects an annual loss due to a decline in sales and US tariffs denting profit. Reuters reports: Read more here. LG Energy Solution warns of slowing EV battery demand due to U.S. tariffs, policy headwinds Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Reuters reports: South Korean battery firm LG Energy ( Solution warned on Friday of a further slowdown in demand by early next year due to U.S. tariffs and policy uncertainties after it posted a quarterly profit jump. Its major customers Tesla (TSLA) and General Motors (GM) warned of fallout from U.S. tariffs and legislation that will end federal subsidies for EV purchases on September 30. "US tariffs and an early end to EV subsidies will put a burden on automakers, potentially leading to vehicle price increases and a slowdown in EV growth in North America," CFO Lee Chang-sil said during a conference call. Read more here. Japan, US differ on how trade-deal profits will be split Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. Japan said Friday that profits from the $550 billion investment deal with the US will be shared based on how much each side contributes. A government official suggested the US will also put in significant funds, but details of the scheme remain unclear. The White House had announced earlier in the week that the US would retain 90% of the profits from the $550 billion US-bound investment and loans that Japan would exchange in return for reduced tariffs on auto and other exports to the US. This would mean that returns would be split 10% for Japan and 90% for the US, according to the White House official, and that it would be "based on the respective levels of contribution and risk borne by each side." Bloomberg News reports: Read more here. US business activity rises; tariffs fuel inflation concerns US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. US business activity rose in July, but companies increased the prices for goods and services, supporting the view from economists that inflation will accelerate in the second half of 2025 and it will mainly be due to tariffs on imports. Reuters reports: Read more here. It sounds like Trump now has a new minimum tariff rate: 15% President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. President Trump set a new rhetorical floor for tariffs on Wednesday night in comments in a shift that raises the president's baseline rate from 10%. Yahoo Finance's Ben Werschkul writes: Read more here. Keurig Dr. Pepper brewer sales volume drops 22%, CEO says tariff impacts 'will become prominent' Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. Keurig Dr. Pepper CEO Tim Cofer said that tariffs are putting additional pressure on the company in an earnings call Thursday, especially when it comes to its coffee business, which KDP expects to be "subdued" for the remainder of the year. "Commodity inflation will build as we roll into the back half and we roll into our higher cost hedges on green coffee," Cofer said. "The tariff impacts will become prominent. And we all know that tariff situation is a bit fluid." Keurig is one of the biggest coffee importers in the US, along with Starbucks (SBUX) and Nestle (NSRGY). The US sources most of its coffee from Brazil, which is set to face 50% tariffs on its products on Aug. 1, and Colombia, which faces a tariff rate of 10%. In Keurig's coffee business, appliance volume decreased 22.6% during the quarter, reflecting impacts of retailer inventory management, and K-Cup pod volume decreased 3.7%, reflecting category elasticity in response to price increases, the company reported. "Our retail partners will likely continue to manage their inventory levels tightly, in particular on brewers," Cofer commented. "And then finally, you know we did a round of pricing at the beginning of the year. We've announced another round of pricing that will take effect next month, and we'll need to closely monitor how that elasticity evolves." Read more about Keurig earnings here. The EU's Trump insurance As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). As my colleague detailed below, EU member states voted to impose tariffs on over $100 billion of US goods from Aug. 7. The Financial Times reported that this move that allows the bloc to impose the levies quickly at any point in the future should its trade relationship with the US take a turn for the worse. From the report: Read more here (subscription required). Europe approves $100B-plus tariff backup plan A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. A report in the Wall Street Journal on Thursday said that the European Union has now approved its retaliatory tariff package on US goods that could start in August if no trade agreement is reached. The EU announced on Wednesday that it will hit the US with 30% tariffs on over $100 billion worth of goods in the event that no deal is made and if President Trump decides to follow through with his threat to impose that rate on most of the bloc's exports after Aug. 1. The US exports, which would include goods such as Boeing (BA) aircraft, US-made cars and bourbon whiskey would all face heavy tariffs that match Trump's 30% threat. The approval of the package comes despite the growing optimism that the US and EU will reach a deal that would put baseline tariffs on the bloc at 15%, matching the level the US applied to Japan. The EU is keen to reach a deal with the US but as a cautionary measure has approved 30% tariffs if a deal is not made. Trump tariffs wreaking havoc in Brazil's citrus belt Reuters reports: Read more here. Reuters reports: Read more here.

Donald Trump Trashed in Scotland's Biggest Newspaper: 'Menace'
Donald Trump Trashed in Scotland's Biggest Newspaper: 'Menace'

Newsweek

time7 minutes ago

  • Newsweek

Donald Trump Trashed in Scotland's Biggest Newspaper: 'Menace'

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump's visit to Scotland has drawn intense criticism from Scotland's largest newspaper, The Daily Record, which called him a "menace" in an editorial while also urging U.K. leaders to pursue pragmatic engagement for the sake of long-term relations. Newsweek contacted Trump's team for a response to the report via email. Why It Matters The comments come after Scottish police have told Newsweek a "significant" operation was being planned in expectation of protests against Trump during his time in Scotland, where he will visit his newest golf course. In 2018, thousands of protesters gathered when Trump visited his Scottish golf courses during his first term. President Donald Trump reacts as he plays a round of golf at Trump Turnberry golf course on July 27, 2025 in Turnberry, Scotland. President Donald Trump reacts as he plays a round of golf at Trump Turnberry golf course on July 27, 2025 in Turnberry, Scotland. Getty Images What To Know On the eve of Trump's five-day trip to Scotland, The Daily Record published a strong editorial criticizing his actions. The newspaper described Trump as a "menace who has caused chaos at home and abroad," referencing his refusal to accept defeat in the 2020 U.S. presidential election, perceived support for protesters involved in the January 6 attack on the U.S. Capitol, and his public statements regarding foreign leaders including Ukrainian President Volodymyr Zelensky and Russian President Vladimir Putin. The editorial also said that Trump's status as a "convicted felon" was contributing to Scottish protesters' outrage. Despite these criticisms, the paper urged leaders such as U.K. Prime Minister Keir Starmer and Scotland's First Minister John Swinney to maintain engagement with Trump for economic and diplomatic reasons, citing decades-long U.S.-UK security ties and potential leverage on international issues such as tariffs and foreign conflicts. What People Are Saying Sarah Malone, executive vice president of Trump International, said in a press release sent to Newsweek: "The Trump family has a deep affection for Scotland, not only as the home of golf, but as the ancestral home of President Trump's beloved mother, Mary Anne MacLeod. We are therefore delighted to confirm that we are planning the creation of a memorial garden in honor of Mary Anne MacLeod as a fitting tribute to her name and legacy." Born on the Isle of Lewis in the Outer Hebrides, MacLeod moved to the U.S. in 1930 and became a naturalized citizen in March 1942. What Happens Next Trump's visit is expected to draw protests throughout Scotland, as noted by The Daily Record. U.K. and Scottish leaders face the challenge of balancing domestic opposition to Trump's policies and character with the need to maintain and potentially strengthen critical U.S.-UK relationships.

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