Presented by Generali
Brussels Playbook
By SUZANNE LYNCH
with ZOYA SHEFTALOVICH
GOOD THURSDAY MORNING and welcome to Brussels Playbook. Suzanne Lynch with you today as leaders gather in Paris for a high-level defense summit and Europe faces a full-blown trade war, after U.S. President Donald Trump announced a whopping 25 percent tariff on car imports overnight.
Sarah Wheaton holds the pen for Friday’s Playbook.
DRIVING THE DAY: EUROPEAN CARS IN CROSSFIRE Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
TRADE WAR GETS REAL: Trump announced new tariffs on imported cars last night in a major escalatory move that threatens to upend the European car industry, not least in Germany.
The details: The U.S. will start collecting the new duties on cars and light trucks on April 3, Trump said in the Oval Office as he signed the executive order. “It goes into effect on April 2nd, we start collecting on April 3rd,” he said. The tariff will also apply to auto parts. The measures could increase the average price of a car bought in the U.S. by between $3,000 and $10,000, POLITICO’s Doug Palmer and Daniel Desrochers report.
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The tariffs are “permanent,” Trump said last night.
The response: The European Commission was out of the block with a statement last night even before Trump finished his remarks. “I deeply regret the US decision to impose tariffs on European automotive exports,” President Ursula von der Leyen said, describing the automotive industry as “a driver of innovation, competitiveness, and high-quality jobs, through deeply integrated supply chains on both sides of the Atlantic.”
Taking stock: “We will now assess this announcement, together with other measures the US is envisaging in the next days,” the Commission chief continued, adding that the EU will “continue to seek negotiated solutions.” Write-up here.
How bad is it? Should tariffs come into effect next week as promised, they could floor the European car industry, which is already dealing with weak sales and a threat from cheaper Chinese cars entering the EU. More than a fifth of all EU car exports go to the United States, with Germany particularly exposed, though Italy, Hungary and Poland are also in the firing line.
The background: Trump has long railed against Europe’s — and particularly Germany’s — car industry, blasting the EU’s 10 percent duty on car imports and pledging a resurgence of the American auto sector. “If you don’t have factories here, you’re going to have to get going and build them,” he said in the Oval Office as he announced details of the plan. Shares of General Motors, Ford and Stellantis dropped in after-hours trading.
It ain’t over: Trump also warned more tariffs would come next week on April 2, which he has dubbed “Liberation Day.” “We’ve not been treated nice by other countries. We’re the piggy bank everybody steals from,” he said.
Preview: EU countries are likely to face a flat, double-digit tariff on all goods as part of these “reciprocal” measures, our transatlantic POLITICO team reported last night.
ŠEFČO GOES TO WASHINGTON Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
PIVOT TO ASIA: Fresh from his trip to Washington, Europe’s Trade Commissioner Maroš Šefčovič touches down in Beijing for two days of meetings today, just as global trade relations have taken a turn for the worse.
The line-up: The Slovak commissioner is due to meet Chinese Vice Premier He Lifeng and Commerce Minister Wang Wentao as well as others such as top customs official Sun Meijun. French Foreign Minister Jean-Noël Barrot is also in China, while Spanish Prime Minister Pedro Sánchez is due to visit in the coming weeks.
De-risk, don’t de-couple: Remember that? Yes, it’s so 2023 … but the phrase coined by Ursula von der Leyen to describe Europe’s China strategy was adopted by such illustrious figures as then-U.S. national security adviser Jake Sullivan. But that was then and this is now, with Europe facing a radically different geopolitical landscape.
You’re not in Kansas anymore: The return of Trump and his visceral disdain for the European Union means a new reality for Brussels as it positions itself in a rapidly changing trade environment.
Going it alone: While von der Leyen tacked closely to the Biden position on China during her first term, her hawkish policy irritated many EU member countries. Exporters from Germany to Spain want to continue selling into the Chinese market. Brussels did hit China with 35 percent duties on electric vehicles last year — in addition to the pre-existing 10 percent duty — but it was a far cry from the Biden administration’s 100 percent levy.
My enemy’s enemy is my friend: With the U.S. playing hardball with the EU and China on trade, the risk is that Washington’s tactics could push Brussels closer to Beijing. But it’s not so simple.
Getting dumped: “There’s a strand of thinking that Europe will embrace China as it moves away from the United States under Trump, but that doesn’t make logical sense,” said Theresa Fallon, director of the Centre for Russia, Europe, Asia Studies think tank. “The Europeans are the most exposed. As the U.S. imposes tariffs, all those Chinese goods that would have been dumped in the U.S. will be dumped in Europe.”
EU objectives: According to the Commission, the EU will raise concerns about China’s non-market policies and barriers affecting EU exports and investment during Šefčovič’s trip. (The commissioner will meet with European businesses at an event at the EU Chamber of Commerce today.) U.S. Trade Representative Jamieson Greer also spoke with the Chinese vice premier Wednesday.
It’s not just trade: Hanging over Šefčovič’s trip is the not insignificant lobbying scandal that has engulfed Brussels involving Chinese-owned telecoms giant Huawei. The EU has also gone quiet of late when it comes to China’s human rights abuses, support for Russia in the Ukraine war, or belligerent activity in the seas around Taiwan and the Philippines. None of this suggests that the long-dormant EU-China investment agreement is anywhere near being resurrected, but let’s see where Europe’s moral compass lies as it tries to protect its own economy.
SEE YOU IN PARIS Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
COALITION OF THE WILLING: French President Emmanuel Macron will host more than 30 leaders in Paris today, in the latest bid by Europe to bolster its defense capabilities and prepare for any post-ceasefire scenario in Ukraine.
Empty chair: One person who won’t be present is President Trump, though leaders representing the rest of the NATO alliance will attend, including Canada’s Mark Carney and British Prime Minister Keir Starmer.
Setting the scene: Speaking alongside Ukrainian President Volodymyr Zelenskyy last night in Paris, Macron announced an additional €2 billion worth of military support for Ukraine, including MILAN anti-tank missiles, MICA and Mistral missiles, VAB vehicles, AMX-10 RC reconnaissance vehicles, drones, observation satellites and ammunition.
Boots on the ground: Among the topics under discussion today is the role European troops could play in any post-ceasefire mission in Ukraine. On the eve of the summit, Spain’s Pedro Sánchez called for the creation of a European army, specifically “EU armed forces with troops from all 27 member countries, working under a single flag with the same objectives,” as Aitor Hernández-Morales reports.
POLAND PREPS: Meanwhile, Poland is getting its population war-ready, following Prime Minister Donald Tusk’s announcement earlier this month that all men would be given military training, Wojciech Kość reports. General Wiesław Kukuła, chief of the general staff of the Polish Armed Forces, told Wojciech that Poland doesn’t have the strategic advantage that some other European countries do: “We are neighbors with the Russian Federation and its ally Belarus, so we don’t have a buffer between us and them, and we have only a limited time to prepare and respond,” Kukuła said.
NATO warning:NATO Secretary-General Mark Rutte said any attack on Poland would trigger a “devastating” response. “If anyone were to miscalculate and think they can get away with an attack on Poland or any other [NATO] ally, they will be met with the full force of this fierce alliance,” Rutte said at a press conference with Tusk in Warsaw Wednesday.
SWIFT NO: Leaders today will also give their response to Tuesday’s announcement by the White House of a limited ceasefire in the Black Sea. But the European Commission poured cold water on Moscow’s caveat (which Trump’s administration is warming to, as my Stateside colleagues report) that implementing the deal is conditional on sanctions relief. An EU spokesperson said the “unconditional withdrawal” of all Russian military forces from the entire territory of Ukraine would be a precondition for lifting sanctions. Macron said last night it was “too early” to consider removing the restrictions.
Full story:More here on how the U.S.-brokered conversations with Putin will face a reality check today in Paris.
Now read this:Veronika Melkozerova reports that Kyiv is worried that in Trump’s rush to get a deal, the U.S. will avoid holding Russia to account for war crimes. “The current U.S. administration chooses concessions, flattery and bargaining instead of pressure on Russia,” a senior Ukrainian official told Veronika.
MORE TRUMP Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
SIGNALGATE LATEST — LAST WALTZ: Donald Trump tentatively blamed his national security adviser Mike Waltz for the Signal leak scandal on Wednesday evening, while continuing to vigorously defend his Secretary of Defense Pete Hegseth. “It was Mike, I guess. I don’t know. I always thought it was Mike,” Trump said. “Hegseth is doing a great job. He had nothing to do with this.” It comes as my Stateside colleagues report that some staunch Trump loyalists are agitating for Waltz to take the fall for his mistake.
FREEDOM FRIES FLASHBACK: It’s more than 20 years since American consumers expressed their anger at France’s decision not to back the Iraq war by renaming French fries “freedom fries.” Now the French are showing their own economic patriotism.
Hitting them where it hurts: A majority of the French population is considering boycotting American brands to oppose the new U.S. administration, according to a survey by polling firm Ifop for website nyc.fr, Giorgio Leali reports. Almost a third said they were already boycotting American brands such as Coca-Cola and McDonald’s, and other big names including Elon Musk’s Tesla and Victoria’s Secret lingerie are also in the firing line.
RESPECT FOR GREENLAND: Denmark’s Prime Minister Mette Frederiksen praised Greenlanders for standing firm as the Trump administration circles the Arctic island. Writing on social media ahead of U.S. Vice President JD Vance’s visit, and after Trump made it clear he wants to get the island one way or another, Frederiksen said: “It is in times like these that you show what you are made of. You have not been cowed. You have stood up for who you are — and you have shown what you stand for. That has my deepest respect.” Write-up here.
BIG READS Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
THE HOUSE OF LE PEN: Marine Le Pen may finally have a shot at winning the French presidency in 2027. But an upcoming verdict in a court case which alleges that her party embezzled millions of euros worth of European Parliament funds could bar her from running for public office for the next five years — shattering her dreams of climbing the steps of the Elysée. Read this week’s POLITICO cover story on the House of Le Pen by Victor Goury-Laffont.
EU’S TURKEY DILEMMA: The EU is set to keep pumping billions into Turkey despite President Recep Tayyip Erdoğan’s sweeping crackdown on political opponents, Gabriel Gavin, Jacopo Barigazzi and Nektaria Stamouli report. Brussels warned its southern neighbor to “uphold democratic values” after authorities arrested opposition leader Ekrem İmamoğlu — but Turkey’s strategic importance means the bloc will likely turn a blind eye.
IN OTHER NEWS Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
EPPO BOMBSHELL: The European Public Prosecutor’s Office has launched an investigation into “possible wrongdoing by the Bulgarian European Prosecutor,” the watchdog announced last night. “The independence of all our prosecutors is one of the core values of the EPPO,” the statement said. Euractiv has the backstory.
LABOR MARKET REFORMS FALL SHORT: The European Court of Auditors said labor market reforms carried out by EU countries under post-Covid 19 recovery plans left many structural problems unresolved, my colleagues Hanne Cokelaere and Aude van den Hove report. A third of the labor market reforms completed by countries did not comply with the EU’s recommendations, according to a new ECA report.
Why it matters: “The idea of using RRF as a carrot to undertake structural reforms has only worked to a limited extent,” said the ECA’s Ivana Maletić, referring to the bloc’s Covid recovery program. The findings could spell trouble for the Commission, which wants to replicate the cash-for-reforms framework in the next multi-year budget.
PARLIAMENT TO DEBATE HUAWEI: The European Parliament will hold a debate on Monday on “the need to ensure democratic pluralism, strengthen integrity, transparency and anti-corruption policies in the EU.” The carefully worded title was agreed upon among political families on Wednesday evening, reports Max Griera.
Something for everyone: While Greens and Socialists will want to talk about the Huawei scandal and how the right-wing bloc is hampering the implementation of the EU ethics body, the European People’s Party and other right-wing groups are expected to target the Commission’s controversial funding to NGOs, Max reports.
JUST LIKE US: As flagged in Wednesday’s Playbook, the Commission urged citizens to have at least three days’ worth of supplies at the ready as part of its “preparedness” plan. But even commissioners need a bit of nudging. Executive Vice President Roxana Mînzatu admitted she doesn’t have the 72-hour supplies on hand. “I do not sleep more than two nights in the same place, so indeed I’m not prepared,” she said at Wednesday’s press conference, Aude van den Hove reports. That prompted her colleague Hadja Lahbib to invite Mînzatu round to her place, where she has everything on hand to whip up pasta alla puttanesca.
AGENDA Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
— France’s President Emmanuel Macron hosts a meeting on peace and security for Ukraine in Paris; NATO Secretary-General Mark Rutte, Council President António Costa, Commission President Ursula von der Leyen and Ukraine’s President Volodymyr Zelenskyy among those to attend. Arrivals at 9:15 a.m., meeting begins at 10 a.m., press conference with Macron at 1:15 p.m.
— General Council meeting of the ECB (virtual).
— Environment Council; arrivals and doorsteps at 9 a.m. … press conference at 5 p.m.Agenda. Watch.
— EU High Representative Vice President Kaja Kallas attends the EU-Central Asia ministerial meeting in Ashgabat, Turkmenistan; meets Sirojiddin Muhriddin, foreign minister of Tajikistan, at 8:45 a.m.; and meets Raşit Meredov, Turkmenistan’s foreign minister.
— European Commissioner Andrius Kubilius in Vilnius, Lithuania; presents the white paper on the future of European defense at the plenary session of the Seimas at 9 a.m.Watch.
— Commission Executive Vice President Henna Virkkunen in Amsterdam, Netherlands; participates in the D9+ ministerial meeting for digital technology and connectivity; meets Dirk Beljaarts, the Netherlands’ minister of economic affairs.
— Democracy Commissioner Michael McGrath hosts the first high-level forum on justice for growth at 9:45 a.m.; Adam Bodnar, Poland’s justice minister, delivers a speech. Watch.
— Preparedness Commissioner Hadja Lahbib attends the Nutrition for Growth Summit in Paris.
— Budget Commissioner Piotr Serafin is in Rome, where he meets Italy’s Economy Minister Giancarlo Giorgetti.
— European Economic and Social Committee President Oliver Röpke chairs plenary sessions on “Depolarizing societies — key take-aways of Civil Society Week 2025” with Democracy Commissioner Michael McGrath at 9 a.m. … on the “New Vision on Agriculture and Food” with Agriculture Commissioner Christophe Hansen at 10:30 a.m. … and on the implementation of the European Commission’s Work Programme with Economy Commissioner Valdis Dombrovskis at 11:30 a.m.
— Parliament’s ECON committee holds a public hearing with Claudia Buch, chair of the supervisory board of the ECB, at 10 a.m.
BRUSSELS CORNER Share on Twitter Share on Facebook Share on Linkedin Share on Handclap
WEATHER: High of 15C, sunny.
CONCERT: Indie-folk duo Bear’s Den performs tonight at Cirque Royal, celebrating their debut album. Doors open at 7 p.m. Tickets here.
DOCUMENTARY FESTIVAL: Starting Friday, the Millennium Festival brings powerful documentaries to the screen, including films about intimate personal stories to human rights and gender equality.
COMEDY: The Schuman Show is back on April 10-12 — tickets here.
BIRTHDAYS: Former Spanish Prime Minister Mariano Rajoy turns 70; former MEPs Izaskun Bilbao Barandica, Isabella Adinolfi, Gerard Batten and Anna-Michelle Asimakopoulou; European Commission’s Leonardo Colucci; John Thompson from Journalism.co.uk; EEAS’ Carole Magnaschi; POLITICO’s Washington Playbook Managing Editor and Author Jack Blanchard.
THANKS TO: Camille Gijs, Gabriel Gavin, Aude van den Hove, Max Griera, Playbook editor Alex Spence, reporter Šejla Ahmatović and producer Catherine Bouris.
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