US and EU agree on 15% tariffs in new trade deal
Trump, who had earlier threatened to impose 30% tariffs on European products starting August 1, confirmed that the agreement also includes $600 billion in planned EU investments in the United States.
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Euronews
2 hours ago
- Euronews
Is this Swedish start-up the answer to Europe's ammunition shortage?
TNT, or trinitrotoluene, was first developed in the late 1800s in Germany. It was initially produced as a yellow dye and only 30 years after its invention were its explosive properties discovered. It is now the most commonly used military explosive. And, after years of underinvestment and rise in demand due to Russia's invasion of Ukraine, in short supply in Europe. Sovereign defence is a hot topic right now, with the EU committing billions of euros in a bid to increase the bloc's military capacity. Some research suggests Russian ammunition production capabilities outweigh Europe's 4:1, though others think it could be as much as 6:1, and although Europe is home to some ammunition production giants such as Rheinmetall, BAE and KNDS, they don't produce their own TNT. In this episode of The Big Question, Joakim Sjöblom, CEO and co-founder of Sweden Ballistics (SWEBAL), sat down with Euronews' Mared Gwyn Jones to discuss increasing Europe's TNT production capacity, along with the economic and security benefits. Does Europe produce any TNT? There is currently one TNT producer in Europe, which is Nitro-Chem based in Poland, and much of their product is exported away from the EU. In April 2025, Nitro-Chem signed a $310 million (€269m) deal to supply 18,000 tonnes of TNT over a 3 year period, destined for the US military. It's estimated that Russia has an annual resource of 4.5-5 million artillery shells per year–with around 2M coming from allies North Korea. Europe's output was roughly estimated at 600,000 shells in 2023 and working together with the US, the 2024 output was estimated at 1.2million shells. The NATO deterrence philosophy is linked to the idea that the likelihood of conflict is significantly reduced if both parties are equally armed. There's around 10kg of TNT in every shell. In order to produce a comparable amount to Russia, Europe would therefore need a supply of roughly 50,000 tonnes of TNT. While Nitro-Chem produces a good amount of TNT for Europe, supplies aren't currently sufficient, and the bloc relies heavily on Asian producers. Joakim fears the consequences of relying on external producers and only one local producer. 'If we go back to the COVID pandemic, we saw that the UK was producing vaccines but they were applying an export ban to it,' he recalls. 'If something were to happen in Poland, I am very certain there would be an export ban on TNT. Same goes for the Asian country that is currently exporting TNT. If there's a conflict in their proximity, there will be an export ban.' China is one of the world's largest producers of TNT, although NATO countries exclude the country from their supply chains. Increasing TNT production in Europe Joakim's company SWEBAL is bringing TNT production back to Sweden and aims to be producing 4,500 tonnes per year of TNT at full capacity, enough for 400-450,000 shells by 2027. Whilst this isn't enough to plug Europe's shortfall, Joakim described it as a 'significant contribution' nevertheless. 'So Sweden used to have TNT manufacturing until 1998,' Joakim explained. 'But during this time when there was a lot of demilitarisation, you could refurbish TNT from the shells that you were demilitarising and the mining industry could get TNT almost for nothing. So there was no commercial incentive to run a TNT manufacturing plant in the 90s.' 'And now we're paying the debt for that,' he added. 'So we are actually building our plant 30 minutes from the old plant in Sweden and we're also building just three kilometres from the Alfred Nobel Dynamite factory, so we're building on very historical ground.' With the right planning, Joakim is confident the growing industry could not only increase the bloc's security, it could provide economic benefits too. 'European member states are spending €200 billion every year on defence material. More than 60% of that is purchased from American producers. 'If those components were to be manufactured in the EU, we would create more than 10 million jobs,' he added. SWEBAL is aiming for all of the machinery, materials and production in their supply chain to be sourced within a 550km radius. Not only is this good for the local economy, it helps to reduce lead time. Asian imports currently take over two months to arrive, as shipping is redirected around the Horn of Africa to avoid the Suez Canal. Building a European defence industry But while SWEBAL invests in scaling up production, is there significant funding for the European explosives industry? The EU's ReArm Europe 2030 plan could release up to €800 billion over the next four years, which includes a €150 billion loan instrument called SAFE (Security Action for Europe) to help member states prioritise homegrown companies. However, Joakim said procurement orders are not coming in from armed forces and member states as quickly as they are being asked to scale up. 'The risk profile is suboptimal right now. The industry needs to carry a lot of risk, which is a benefit as a new player in the industry, because we don't have the same shareholders to cater for and we don't have the same stock price that we consider on a quarterly basis,' he told The Big Question. 'My job here is to make sure that we prevent a future conflict, and making short-term profit is not high on my agenda.' Joakim also highlighted another limiting factor for the industry in Europe. 'One of the biggest risks that I see in the European military is that we are not harmonised. So intercompatibility: the tanks of this country should be compatible with ammunition from another country.' 'And in order to achieve that, the market also needs to evolve… To use a famous quote, 'you either have an army or you have another country's army in your country'. So I think the price we pay if we don't do it is going to be even higher.' The Big Question is a series from Euronews Business where we sit down with industry leaders and experts to discuss some of the most important topics on today's agenda. Watch the video above to see the full discussion on European TNT production.
France 24
15 hours ago
- France 24
US trade advisor says Trump tariff rates unlikely to change
Trump, who has wielded tariffs as a tool of American economic might, has set tariff rates for dozens of economies including the European Union at between 10 and 41 percent come August 7, his new hard deadline for the duties. In a pre-taped interview broadcast Sunday on CBS's "Face the Nation," US Trade Representative Jamieson Greer said "the coming days" are not likely to see changes in the tariff rates. "A lot of these are set rates pursuant to deals. Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country," Greer said. "These tariff rates are pretty much set." Undoubtedly some trade ministers "want to talk more and see how they can work in a different way with the United States," he added. But "we're seeing truly the contours of the president's tariff plan right now with these rates." Last Thursday, the former real estate developer announced hiked tariff rates on dozens of US trade partners. They will kick in on August 7 instead of August 1, which had previously been touted as a hard deadline. Among the countries facing steep new levies is Brazil. South America's largest economy is being hit with 50 percent tariffs on exports to the United States -- albeit with significant exemptions for key products such as aircraft and orange juice. Trump has openly admitted he is punishing Brazil for prosecuting his political ally Jair Bolsonaro, the ex-president accused of plotting a coup in a bid to cling to power. The US president has described the case as a "witch hunt." Greer said it was not unusual for Trump to use tariff tools for geopolitical purposes. "The president has seen in Brazil, like he's seen in other countries, a misuse of law, a misuse of democracy," Greer told CBS. "It is normal to use these tools for geopolitical issues." Trump was "elected to assess the foreign affairs situation... and take appropriate action," he added. Meanwhile White House economic advisor Kevin Hassett said that while talks are expected to continue over the next week with some US trade partners, he concurred with Greer's tariffs assessment in that the bulk of the rates "are more or less locked in." Asked by the host of NBC's Sunday talk show "Meet the Press with Kristen Welker" if Trump could change tariff rates should financial markets react negatively, Hassett said: "I would rule it out, because these are the final deals." Legal challenges have been filed against some of Trump's tariffs arguing he overstepped his authority. An appeals court panel on Thursday appeared skeptical of the government's arguments, though the case may be ultimately decided at the Supreme Court.
Euronews
19 hours ago
- Euronews
OPEC+ agrees to boost oil production in large output hike
OPEC+ on Sunday agreed to boost oil production by 548,000 barrels per day from September in a move that could further reduce gas prices this year. OPEC+ had been curtailing production of oil for several years to support oil prices, but changed course earlier this year after calls by US President Donald Trump to ramp up production. Saudi Arabia holds significant influence in OPEC+ as the dominant member of the OPEC producers' cartel, and Russia is the leading non-OPEC member in the 22-country alliance. The decision comes amid increasing US pressure to bring Moscow to the negotiating table to end their ongoing, full-scale invasion of Ukraine. Our journalists are working on this story and will update it as soon as more information becomes available.
