
E.U. Cuts Aid to Ukraine Over Corruption Concerns
The European Union said on Friday that it would withhold 1.5 billion euros, or $1.7 billion, from an overall fund of 4.5 billion euros whose disbursement is dependent on achieving good governance standards and that can't be used for military purchases. The decision is not final, however, and the funding can be restored if Ukraine meets certain benchmarks.
Mr. Zelensky had no public comment on the aid cut, which nevertheless was a setback for Ukraine's leader, who is depending on European financial support to fill gaps left by the Trump administration's refusal to underwrite Ukraine's war effort.
While holding back Western aid to spur reform was common before Russia's invasion, Friday's decision seemed to signal a new willingness by the bloc to admonish Mr. Zelensky's government on domestic policy during the war. It also raised questions about whether the glow around Mr. Zelensky might be beginning to dim among Ukraine's Western allies.
James Wasserstrom, an American anticorruption expert, said in an interview that 'the luster is definitely coming off' Mr. Zelensky's wartime leadership among governments providing financial assistance. He added, 'There is exasperation at Zelensky in the donor community.'
The E.U.'s decision capped a tumultuous week for Mr. Zelensky, who first pushed a measure through Parliament that stripped the independence of two anticorruption agencies, raising protests from foreign leaders as well as the Ukrainian people.
Want all of The Times? Subscribe.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


New York Times
10 minutes ago
- New York Times
How the E.U. Wooed Trump With Flashy but Flimsy Numbers
When Donald Trump unveiled his trade deal with the European Union on Sunday night, he fixated on its size. And when the White House later released a fact sheet on the agreement, it trumpeted pledges by the Europeans for big investments in the United States. 'The E.U. will purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028,' the document declared. But when the European Union released its own fact sheet on Tuesday, its description of that pledge was more muted — and far more noncommittal on spending outside of energy. 'E.U. companies have expressed interest in investing at least $600 billion' in 'various sectors in the U.S.,' the document explained. There's a reason for the equivocation: The European commitments are more like vague estimates than specific promises. The spending would come from private companies across the 27-nation bloc and would not be directed or enforced by European Union officials. The European Commission, the European Union's executive branch that is responsible for negotiating trade, can play a role in convening, organizing and encouraging big spending, but it cannot compel such outlays. Want all of The Times? Subscribe.


USA Today
11 minutes ago
- USA Today
Trump, China trade talks move closer to extending tariff truce
WASHINGTON – The Trump administration and Chinese officials appear to be moving toward extending a 90-day tariff truce the two sides struck in May, but President Donald Trump still has not signed off on it. Momentum to extend the truce, in which both countries held off on imposing massive, triple-digit tariffs on imports on one another, came as a result of two days of U.S.-China talks in Stockholm. "We're going to talk to the president about whether that's something that he wants to do," U.S. Trade Representative Jamieson Greer, Trump's top trade official, told reporters in Stockholm. "It's certainly something that's been under discussion." More: Trump's trade talks intensify with tariff deadline fast approaching Trump expressed optimism about the latest round of discussions between his economic team and Chinese officials as he returned to the White House from Scotland aboard Air Force One. "They're going to brief me tomorrow. We'll either approve it or not," Trump said, referring to an extension of the truce. China's top trade negotiator Li Chenggang said that both countries agreed to push for an extension of the trade truce, without specifying when or for how long. In May, the Trump administration and China agreed to slash tariffs for 90 days in a push to de-escalate a trade war between the world's two largest economies while the two sides continued to negotiate a long-term agreement. However, a long-term deal between the United States and China still hasn't come together ahead of an Aug. 1 deadline when Trump was preparing to impose higher tariffs on goods from nearly 180 countries. Under the truce in May, the United States reduced 125% reciprocal tariffs imposed on Chinese imports by 115% to a 10% baseline tariff, which matches the tariffs the Trump administration imposed on other countries. Trump's 20% tariffs slapped on China over fentanyl production remained in effect, meaning the U.S. tariffs on China totaled 30% overall. In turn, the Chinese government agreed to reduce its retaliatory tariffs on U.S. exports for 90 days from 125% to 10%. Treasury Secretary Scott Bessent, who participated in the trade talks in Stockholm, said he believes the Chinese were "surprised" by the magnitude of Trump's recently announced trade deals with Japan and the European Union. More: President Trump announces 'massive' Japan trade deal with 15% tariff "They're never compliant, but I think they were in more of a mood for a wide-ranging discussion," Bessent said, calling the tone of the talks "constructive." Bessent said Trump's team conveyed the need for the United States to improve the trade balance with China in areas such as rare earth minerals, semiconductors and medicines. "We reiterated to them: We don't want to decouple. We just need to de-risk with certain industries," Bessent said. Reach Joey Garrison on X @joeygarrison.


Axios
11 minutes ago
- Axios
Trump's plan to boost U.S. automakers is squeezing them instead
A consequence of President Trump's new trade deals with Japan and the European Union is that they could entice foreign automakers to import even more cars to the U.S., rather than grow their American operations. Why it matters: Trump's effort to reshape global commerce assumes that punishing tariffs on imports will force foreign manufacturers to set up factories in America, strengthening the U.S. economy. But his trade policy conflicts in many ways with those industrial policy goals, for now at least, by making it cheaper to import cars than to build them in North America. The big picture: That's probably not the case forever. Trump's penchant for one-off trade deals with individual countries means some will have agreements before others. But neither U.S. automakers nor the United Auto Workers are happy about the advantages their competitors have at the moment. Where it stands: Tariffs on cars imported from Japan or Europe will face a 15% tariff, starting Aug. 1, in lieu of a 25% tax hike the U.S. imposed on all imported vehicles and car parts earlier this year. It might seem like a reprieve, but it's still sharply higher than the 2.5% they had been paying before Trump took office. U.S.-built cars, by contrast, are taxed 25% on imported parts (except for those that comply with the U.S.-Mexico-Canada trade agreement signed by Trump in his first term). That applies not just to the Detroit 3 carmakers, but also to foreign automakers with U.S. plants. Plus, they're subject to 50% tariffs on imported steel, aluminum and soon, copper. Cars built in Canada and Mexico, already taxed at 25%, face even higher tariffs beginning Aug. 1. For Canada, the new rate would be 35%; for Mexico, 30%. Many companies build vehicles in Canada or Mexico and ship them to the U.S. Winners and losers: For now, the winners of Trump's head-spinning trade policies are Japan, the UK and the EU, James Schmidt, vice president-autos for the Oliver Wyman consultancy, tells Axios. At least those countries can move forward with their strategies for serving the U.S. market, he said. Losers are the countries still negotiating, like South Korea, Mexico and Canada, as well as U.S. automakers that produce vehicles in those countries. Trump has said tariffs will go up on Aug. 1 if no deal is reached. "It's a big jigsaw puzzle right now," says Schmidt. "The rest of the pieces still have to fall into place." In the short term, he said, Japanese and European carmakers may be enticed to import more cars to the U.S., even with the 15% tariff, to avoid other levies. What they're saying:"U.S. trade policy should push automakers to build in America, with skilled, union labor. A flat 15% tariff doesn't accomplish that," the UAW, which previously backed Trump's tough talk on tariffs, said in a statement. "In fact, when left unchecked, companies often respond by shifting final assembly and supply chains to even lower-cost countries—making the situation for workers far worse. American workers deserve more than empty promises. They deserve a trade policy that delivers real jobs and a real future." The other side:"No president has taken a greater interest in restoring American auto industry dominance than President Trump, and the Administration is in constant touch with the auto industry to meet this objective," White House spokesperson Kush Desai told Axios. He pointed to trade deals that open up market access in Japan and Europe for American brands, as well as efforts to expand domestic metals production. The bottom line: It's difficult to predict the future, but U.S. trade policy is starting to become clearer, David Steinert, a partner in the automotive and industrial practice at the consulting firm AlixPartners, tells Axios via email.