Photograph: Wojtek Jargiło/EPA
Closing summary
… and on that note, it’s a wrap!
Lithuania warned about “an alarming spillover of Russia’s aggression” into Nato territory after confirming that a Russian drone which violated the country’s airspace last week was carrying explosives – even if it still believed it only got across the border by accident (17:33)
The incident prompted the authorities in Vilnius to request additional air defence support from Nato (17:18.)
On Ukraine,
Ukrainian president Volodymyr Zelenskyy said he had a “productive conversation” with US president Donald Trump this afternoon, talking about the importance of keeping the pressure on Russia to “stop the killings as soon as possible” (16:35).
The pair discussed the US plans to impose sanctions and secondary tariffs aiming to disrupt Russia’s financing of its war operations in Ukraine (14:34), endorsed by the EU (12:31), but criticised by India (13:13).
Earlier, the Netherlands (10:15) and three Nordic countries – Denmark, Norway and Sweden (13:57) – announced their plans to finance further military aid for Ukraine under a new US-Nato mechanism agreed with Trump last month.
Earlier today, 38 countries backed a call to Russia to return “unlawfully deported and forcibly transferred Ukrainian children” back to their families in Ukraine. (18:01).
On trade,
The EU defended its recently agreed deal with the US, saying the choice was not “between a good and a great outcome,” but a “bad but less bad outcome” (11:57) rejecting fresh criticism from German finance minister, Lars Klingbeil (12:46).
But US president Trump warned he could impose punishing tariffs of 35% on the EU should the bloc failed to meet its investment promises (14:56), signalling a significant difference of opinion between Washington and Brussels over what was agreed on that point (15:26, 15:56, 17:39).
Trump also repeated his warnings on pharmaceuticals, repeating it was his intention to have them “made in our country.”
And that’s all from me, Jakub Krupa, for today.
If you have any tips, comments or suggestions, email me at jakub.krupa@theguardian.com.
I am also on Bluesky at @jakubkrupa.bsky.social and on X at @jakubkrupa.
Updated
38 countries urge Russia to return abducted Ukrainian children
38 countries, including Canada, France, Germany, Japan and the UK, urged Russia to return “unlawfully deported and forcibly transferred Ukrainian children” back to their families in Ukraine.
The statement, published by the office of the Ukrainian president and also signed by Council of Europe and the European Union, said that Ukraine gave Russia a list of 339 Ukrainian children, and expected it to “act promptly and meaningfully on the initial list”, and to then cooperate on returning all children back to Ukraine “in accordance with international law and relevant UN resolutions.”
“The return of Ukrainian children is one vital step in this broader imperative, to ensure that children are never used as pawns of war. All actions must be guided by the best interests of the child in accordance with international law,” the signatories said.
UN plastic pollution talks must result in ambitious treaty, leading expert says
Speaking of Geneva:
Delegates at the UN plastic pollution treaty talks in Geneva must secure an ambitious global agreement so they can look future generations in the eye, one of the world’s leading marine litter experts has said.
Prof Richard Thompson, who was named one of Time’s 100 most influential people this year for his groundbreaking work on plastic pollution, said decisive action was needed to protect human health and the planet.
He spoke as delegates from more than 170 countries prepared to meet in Geneva to bridge what have become deep divisions over whether limits on plastic production are included in a final treaty.
Since 2022, when the UN first secured an agreement from 173 countries to develop a legally binding treaty to cut plastic pollution, five separate negotiations have failed to secure a final text to sign.
The initial agreement was for a treaty to address the whole life cycle of plastics. But increasing numbers of plastics industry lobbyists have attended each round of talks to push back against production cuts.
Swiss president, economy minister travel to Washington to avert punishing US tariffs
The president of Switzerland is travelling to Washington to try and avert a punishing 39% tariff rate on all exports including pharma and luxury watches exported to the US.
Karin Keller-Sutter and economy minister Guy Parmelin were heading to Washington “to facilitate meetings with the US authorities at short notice and hold talks with a view to improving the tariff situation for Switzerland,” the government said in a statement.
The 39% tariff announced by Trump last Friday blindsided the government and led industry associations to warn of job losses.
The Swiss government noted that the country will be hit by much higher tariffs than what other wealthy economies, such as Britain, Japan or the European Union, are facing.
Switzerland counts the US as its top export market for pharmaceuticals, watches, machinery and chocolates with bilateral trade quadrupling in the past two decades.
But it still has a $48bn trade deficit with the US, something that has irritated Trump to such a degree that he took a personal swipe at Keller-Sutter on Tuesday.
He told CNBC that “the woman was nice but she didn’t want to listen” when they spoke last Thursday.
Trump doubles down on claims he can do 'anything' with EU investment
Donald Trump’s White House is doubling down on claims that he can do “anything” he likes with the $600m (£451m) of investments pledged by the EU as part of the tariff deal Brussels struck at his Scottish golf course nine days ago.
A White House press release hailing the top 10 take outs from Trump’s interview today on CNBC starts with his “historic trade deals”.
“We’re taking in trillions of dollars … If you look, Japan – we’re taking in $550 billion, and ... that’s OUR money. It’s our money to invest as we’d like. European Union – $650 billion... and they’re going to buy $750 billion worth of our energy.”
The investment pledge is not an EU fund for the US, senior EU officials have pointed out. Rather, it is an aggregate of what private EU companies have committed to, or say they will invest, in the next three years.
And for the second historic move, the White House refers to Trump’s pledge to end what he sees as Europe’s price gouging on pharma quoting him saying:
“For 30 years, Europe has had drug prices that are, in many cases, one-tenth the cost of drugs here... We’re not going to pay ten times more for a pill than they pay in Europe, and that’s going to have a tremendous impact.”
Drone incident 'represents alarming sign of spillover of Russia's aggression ... onto Nato territory,' Lithuanian minister says
Lithuania’s foreign minister Kęstutis Budrys said a bit more about the incident on his social media channels:
“Last Monday, a Russian military drone violated Lithuanian airspace. This marks the second such incident in less than a month. Similar airspace violations have also been reported recently by other Allies.
These repeated incidents represent an alarming sign of the spillover of Russia’s aggression against Ukraine onto Nato territory.
We cannot compromise the security of our country and citizens, nor the integrity of Nato airspace. We must remain vigilant, as the threat is real and growing.
Today, with @DSakaliene, we issued a joint letter to @SecGenNATO calling for immediate measures to enhance air defence capabilities in #Lithuania & accelerate the full implementation of the rotational air defence model.
Air defence is vital to Allied security. Securing Nato’s Eastern Flank must remain a top priority for the Alliance.”
Updated
'Disoriented' drone crossing into Lithuania from Belarus was carrying explosives, authorities say
We’re getting big news from Lithuania with the country’s prosecutor general confirming that an unmanned drone that crossed into the country from Belarus last week and crashed near a military training ground was carrying explosives.
The drone was originally reported by local residents concerned by the sight and the noise the object was making when flying near Lithuania’s capital, Vilnius. It took authorites four days before they eventually located it on the ground near the Gaižiūnai military training base.
Prosecutor general Nida Grunskienė said today that it was established that the drone was carrying an explosive device, which was “neutralised at the scene,” Lithuania’s public broadcaster LRT reported. Various parts of the aircraft are now undergoing more in-depth forensic examination, she said.
Col Dainius Paškevičius, chief of staff of the Lithuanian Air Force, noted the drone carried only “about two kilograms of explosives,” way less than a typical load of 50 kg, LRT noted.
Lithuania’s defence minister Dovilė Šakalienė said the current assumption was that the drone entered Lithuania by accident after being disoriented by the Ukrainian defence systems, but this will remain a part of the investigation.
Both Šakalienė and the country’s foreign minister Kęstutis Budrys also said that Lithuania had notified Nato of the initial findings and requested urgent additional air defence support to protect the Lithuanian sky from similar incidents.
Updated
Zelenskyy speaks to Trump on sanctions against Russia, deal with US on drones in 'productive' phone call
Ukrainian president Volodymyr Zelenskyy has said he had a “productive conversation” with US president Donald Trump this afternoon, discussing how to end the war with Russia.
Repeatedly thanking Trump for his support, Zelenskyy said it was “really necessary to stop the killings as soon as possible,” adding this could have already happened “if Russians had not dragged it out.”
The Ukrainian president said the leaders noted that “the Russians have increased the severity of the strikes,” and said that Trump was "fully informed” about the situation.
“Of course, we talked about sanctions against Russia. Their economy continues to fall, and that is why Moscow is so attentive to this prospect and President Trump’s determination. This can change a lot,” he said.
Zelenskyy also said they briefly discussed the European aid packages for Ukraine confirmed by the Netherlands last night and the three Nordic countries today, adding that “this interaction with Nato will continue.”
He also said that Ukraine has prepared a draft agreement on drones with the US, and was ready “to discuss in detail and conclude it.”
Updated
Zelenskyy thanks Nordic countries for €430m military aid package
Back to Ukraine, the country’s president Volodymyr Zelenskyy has welcomed the €430m military aid package put together by Denmark, Norway and Sweden (13:57), saying it will “significantly boost our ability to protect lives.”
“These steps are a new, real foundation for long-term security across all of Europe. Russia will never turn Europe into a continent of war, and it is precisely through our joint efforts that we are ensuring peace will prevail,” he said.
Updated
EU's $600bn investment promise is more of an intention, not a 'gift' - snap analysis
The EU’s promise to invest $600bn in the US as part of its tariff deal is just that. It is an “intention” and not a “gift” as decribed by Donald Trump (14:56), senior officials have said.
Trump’s characterisation of the money is the type of clash Brussels is desperate to avoid, given the US president’s history of making declarations he does not deliver on.
The day after the EU-US tariff deal was struck at Donald Trump’s Scottish golf resort, officials explained very clearly that the promise of investments was an “aggregate” of money promised by EU companies, including major car manufacturers in Germany and pharma companies, many of which are based in Ireland, the target of much of Trump’s ire when it comes to medicines.
A senior official in the EU insisted last week that $600bn did not “come out of thin air” but was the result of detailed conversations with trade associations and big EU companies about their investment plans in the US.
The EU itself has no power to invest money itself in the US.
“We have basically aggregated what we know about investment intentions of companies, of private companies,” said one senior source who added that that this would be expressed in the joint statement as “an intention”.
This is at odds with Trump’s description of it as a fund that he can personally direct.
“The details are, $600bn to invest in anything I want, anything. I can do anything I want with it. And the purpose was, they’ve been, you know, ripping us to so many years that it’s time that they pay up and they have to pay up,” he said earlier today.
But it is also at odds with the White House statement on 28 July, the day after the EU-US deal was struck.
It describes the $600m as “new investments” that will be made “by 2028”.
Under the title “Massive EU Investment in the United States”, the White House repeats the point saying: “The EU will invest $600 billion in the United States over the course of President Trump’s term.”
You won’t be surprised to hear that the $600bn investment promised by the EU is a tiny bit more complicated than “a gift” that Trump can do anything he wants with it (14:56).
It mostly covers existing and future commitments already made by EU companies – and not represent a blank cheque for Trump to do anything he wants with it.
We will bring you more on this shortly.
Updated
Trump also bragged in passing that leaders of Nato “do whatever I want.”
Erm.
Trump says EU could face 35% tariffs if it fails to meet $600bn investment promises, threatens with pharma tariffs
US president Donald Trump also said that if the EU fails to meet its investment promises under the EU-US deal, the bloc will face tariffs of 35%.
He said:
“They bought down their tariffs. They paid $600bn and because of that I reduced their tariffs from thirty percent down to fifteen percent, and a couple of countries came, ‘How come, the EU is paying less than us’, and I said well, because they gave me $600bn.
And that’s a gift, that’s not like, you know, a loan … they gave us $600bn that we can invest in anything we want.”
He added:
“The details are, $600bn to invest in anything I want, anything. I can do anything I want with it.
And the purpose was, they’ve been, you know ripping us to so many years that it’s time that they pay up and they have to pay up.”
He then criticised the Swiss “prime minister” – it was the country’s federal president – saying she “didn’t want to listen” to his arguments.
Trump then moved on to pharmaceuticals, saying “they make a fortune with pharmaceuticals, and they make in China and Ireland and everything else,” and that he will be announcing separate tariffs on them “within the next week or so.”
“This is a, you know, this is a separate class than the 15% tariffs on sort of everything. These are excluded classes, I like to call them, like steel, aluminium.”
He added:
“We’ll be putting an initially small tariff on pharmaceuticals, but in one year, one and a half years maximum, it’s going to go to 150%, and then it’s going to go to 250%, because we want pharmaceuticals made in our country.”
Updated
There are many more lines of interest in this Trump interview, as he also spoke about the EU-US trade deal. Let me get them for you now.
'If energy goes down, Putin is going to stop killing people,' Trump says, as he doubles down on threat to raise tariffs on India for buying Russian oil
US president Donald Trump has been talking to CNBC’s Squawk Box in the last few minutes, and he suggested that a further drop in energy prices could make Russian president Vladimir Putin halt the Russian invasion of Ukraine and “stop killing people.”
If energy goes down enough, Putin is going to stop killing people.
He explained:
“If you get energy down, another $10 a barrel, he’s going to have no choice because his economy stinks.”
Trump also repeated his threat he would increase US tariffs on India soon over their continuing purchase of Russian oil.
“They have the highest tariff of anybody ... We settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours because they’re buying Russian oil, they’re fueling the war machine, and if they going to do that, I’m not going to be happy.”
Nato's Rutte welcomes first financial packages to help with deliveries for Ukraine
Nato secretary general Mark Rutte has just responded to the Nordic package of help for Ukraine, saying:
“Grateful to Denmark, Norway & Sweden for fast action to fund a package of US military support for Ukraine. This will deliver life-saving equipment & critical supplies to the front-line, strengthening Ukraine’s hand & helping them deter aggression as they pursue lasting peace.”
He also earlier thanked the Netherlands for its contribution, saying:
“Great to see the Netherlands taking the lead and funding the first package of US military equipment for Ukraine under NATO’s Prioritised Ukraine Requirements List initiative. I thank Allies for getting Ukraine the equipment it urgently needs to defend against Russian aggression. I expect further significant announcements from other Allies soon.”
Updated
Norway, Sweden and Denmark to finance €430m military package for Ukraine
Norway, Sweden and Denmark have just announced plans to jointly finance a support package for Ukraine under the new US-Nato mechanism, Prioritised Ukraine Requirement List, agreed with US president Donald Trump last month.
The package, estimated to be worth some €430m in total, will include support for “Ukraine’s air defence, ammunition and other essential equipment,” Norwegian government’s press release said. The details of the package will not be made public for security reasons.
Sweden will make the largest contribution of over €230m, with Norway to follow at around €120m and Denmark at around €80m, according to indicated totals.
Norwegian defence minister Tore O. Sandvik said the new package was meant to ensure that Ukraine “quickly receives the equipment it needs” to defend itself from Russia.
Simultaneously, Swedish ministers presented the outline of the deal at a press conference in Stockholm.
In her opening statement, deputy prime minister and energy, industry minister Ebba Busch insisted “Ukraine’s cause is our cause,” as she stressed the need to continue supporting Ukraine amid sustained Russian attacks.
Defence minister Pål Jonson added that the continued strikes showed there was little appetite from Russia to end the conflict.
This is a second package of this kind after the Netherlands announced its plans to spend around €500m on US weapons for Ukraine under the new scheme (10:15).
Updated
India rejects US, EU's 'unjustified' criticism for trading with Russia
Meanwhile, India has responded to criticism from the US and the EU, saying it is being unfairly singled out by them over its Russian oil purchases when they both trade extensively with Moscow despite the war in Ukraine, Reuters reported.
In a rare show of unity, prime minister Narendra Modi’s Bharatiya Janata Party (BJP) and the main opposition Congress condemned Trump’s repeated criticism of New Delhi.
India’s foreign ministry said in a statement issued late on Monday that “it is revealing that the very nations criticising India are themselves indulging in trade with Russia“.
“It is unjustified to single out India,” the ministry said. It said the EU conducted €67.5bn euros ($78.02bn) in trade with Russia in 2024, including record imports of liquefied natural gas (LNG) reaching 16.5 million metric tons.
The United States, the statement said, continues to import Russian uranium hexafluoride for use in its nuclear power industry, palladium, fertilisers and chemicals. It did not give a source for the export information.
Updated
EU says 'surprised' by German finance minister's criticism of EU-US trade deal
Oh-oh.
The EU has just publicly clashed with Germany over finance minister Lars Klingbeil’s comments on EU-US trade in Washington last night.
Klingbeil said the EU was “too weak” in negotiations, and argued that “we can’t be satisfied with the result that was achieved,” suggesting he would push for limited exemptions for Germany’s steel sector, as reported by Deutsche Welle.
But EU trade spokesperson, Olof Gill, pointedly said the bloc was “quite surprised” to hear his comments.
He said:
“I would remind you that EU, member states and business stakeholders have consistently underscored that a trade conflict with the US was not a desirable course of action. They have insisted to us that only a negotiated solution could ensure stability and protect our shared interests.
This was the view of an overwhelming majority of EU member states, including the one from which the minister you mentioned hails.”
Gill said the EU “reached a negotiated solution to avoid a lose-lose tariff escalation, that’s what our member states asked for, … that’s what we have delivered.”
“So … it is most surprising to us to hear that a minister from the member state in question has expressed that view, given that nothing has happened here in terms of the Commission’s approach, negotiation or outcome achieved without the clear signal received from our member states.”
He also said that more work on steel is being done at the EU level.
Deputy chief spokesperson Arianna Podestà went further saying that Klingbeil’s comments “do not correspond to the conversations we have had with the same member state over the past weeks and months.”
EU 'welcomes US pressure' on Russia to end war 'through any means necessary'
On Ukraine, the EU spokespeople were asked about the bloc’s expectations as to Donald Trump’s deadline for Russia to end its invasion on Ukraine by Friday.
The commission’s foreign policy spokesperson, Anitta Hipper, said:
“Russia is not interested in peace. Ukraine is, the EU is. Nobody wants peace more than Ukraine and the EU. …
We welcome any pressure, and in particular US pressure on Russia to accept a ceasefire through any means necessary.”
Deputy chief spokesperson Arianna Podestà also confirmed the EU remained “in contact with our international partners,” including the US, but declined to speculate on “future possible actions.”
'Unbearable' situation in Gaza makes EU push for more aid, with 'still lot to be done'
Separately, a European Commission spokesperson just said the situation in Gaza “remains unbearable,” with the EU still pushing to open access for the humanitarian aid flowing into the territory.
She said the EU’s recent deal with Israel on improving the situation was “very positive,” but “very clearly there is still a lot to be done.”
They later rejected a suggestion that the EU’s involvement in resolving the crisis was a “failure,” saying:
“I believe that for what we have been able to verify … there has been some improvement compared to the situation before this agreement was reached.
Is this sufficient? Absolutely not.
This is why we continue to monitor to be in dialogue, and we continue to call on the delivery of further aid to the civilian population in Palestine.”
Updated
Ukraine sees Indian components used in Russian drones, senior Zelenskyy aide reveals
And in the last few minutes, Andriy Yermak, senior aide to Ukrainian president Volodymyr Zelenskyy, sought to ramp up the pressure on India as he revealed that Ukrainian armed forces have seen Indian components being used in Russian drones involved in strikes against civilian population across Ukraine.
“It is necessary to deprive the Russians of the opportunity to receive components from other countries and stop the killing of Ukrainians. Also, buying Russian energy resources is financing war, which does not contribute to peace,” he added.
Kremlin decries Trump's 'illegal' threat to raise tariffs on India for Russian oil purchases
Back to Ukraine and Russia, the Kremlin has criticised US president Donald Trump’s threat to raise tariffs on India for its purchases of Russian oil this morning, decrying the move as “illegal” and saying it was unacceptable to force countries to stop trading with Moscow, Reuters and AFP reported.
“Sovereign countries have the right to choose their own trading partners,” spokesperson Dmitry Peskov told reporters.
“They don’t care how many people in Ukraine are being killed by the Russian War Machine,” Trump said in a post to his Truth Social network, also accusing India of selling Russian oil “on the Open Market for big profits”.
In a previous social media tirade last week, he said of Russia and India: “They can take their dead economies down together.”
Separately, Russia also said it no longer had any restrictions on where it places its intermediate-range missiles after Trump’s suggestion the US would move its nuclear submarines in response to former Russian president Dmitry Medvedev’s confrontational rhethoric towards the US.
Updated
EU 'not celebrating' new 'second best' US tariff regime as details on wines, spirits, cars and pharma emerge
Wine made in the EU is unlikely to be duty free in the US at the end of current negotiations between Brussels and Washington, it has emerged.
The EU is confident it can slash the new 15% import duty imposed on exports from the EU for wine and spirits but said the “relative low” most favoured nation tariff rate that already applies to wine is likely to stay.
Donald Trump alone cannot offer a zero for zero deal on wine because it would require congressional approval, something that is not being sought as part of this negotiation, senior EU officials have revealed.
Therefore wine was not likely to be in the category of goods that will be rated zero on both sides for imports and exports.
US tariffs on wine range from 0.6% on some sparkling wines to 1.5% on a bottle of red or white wine below 14% alcohol content and 0.5% on a bottle of fortified wine, port of sherry.
Spirits are already sold into the US on zero tariffs so there is scope for the 15% tariff rate that applies after the EU-US deal was struck can be eliminated altogether.
The EU said it was not celebrating the new tariff regime which has been criticised by politicians in France.
“We’re very clearly operating in a second best world,” said one senior official adding the choice the EU had was not “between a good and a great outcome” but a “bad a less bad outcome”.
The deal struck between the EU and the US at Trump’s Scottish golf course on 27 July imposes 15% tariffs on most exports to the US but some sectoral tariffs and a so called list of “zero for zero” products that would not be taxed in either direction has yet to be finalised.
The EU and US are currently in advanced talks on a joint statement which will set out more clearly the areas they hope to negotiate including potential quotas for steel exports.
A senior official said the statement is “90% to 95% there” and should be published soon with negotiations ongoing with commerce secretary Howard Lutnick and trade representative Jamieson Greer.
EU trade commissioner Maroš Šefčovič said: “I am in contact with Secretary Lutnick and Ambassador Greer as we work to turn July’s EU-US agreement – in all its elements – into practice. The work continues in a constructive spirit.”
The joint statement will not be legally binding but has been likened to a “road map” for future negotiations by EU officials.
Ahead of the publication EU officials have clarified a number of issues in relation to sectoral tariffs including cars and pharmaceuticals.
Unlike the UK,they are not expecting a quota limiting the number of cars exported to the US under a 15% tariff rate.
And while the US has decided to scrap the zero tariff rate on pharmaceuticals and apply a 15% import duty, this will not apply until the US has concluded its section 232 investigation. When it does apply, it will not include medical devices.
Updated
EU trade commissioner Maroš Šefčovič told journalists that he remained in contact with his US counterparts, commerce secretary Howard Lutnick and trade representatives Jamieson Greer, as their talks on the implementation of the EU-US deal “continue in a constructive spirit.”
More to come on this.
Updated
Back to the EU-US trade talks for a moment:
The EU is briefing reporters on the latest progress this morning, stressing the 15% tariff that European Union goods face when entering the United States is all-inclusive, incorporating the Most Favoured Nation Rate, unlike some other countries with deals with the US, Reuters reported.
The two sides were still working on a joint statement covering some of the details of the deal and how it is to be implemented, officials said, adding that despite “pretty advanced” talks, they couldn’t advise as to when it will be signed off by both sides.
The officials added that it would take some time “before we fully nail down the list of essential products” that are exempt from US tariffs.
The EU also repeated its previous narrative that a deal is better than no deal, warning that a failure to find an agreement could lead to divisions wthin the bloc and high tariffs on both sides, hitting businesses even more.
We will bring you more on this shortly.
The Netherlands to buy €500m-worth of US weapons for Ukraine
Meanwhile, the Netherlands is the first country to commit €500m to spend on US weapons for Ukraine under a new framework deal agreed by US president Donald Trump and Nato secretary general Mark Rutte last month.
On Monday night, Dutch prime minister Dick Schoof said the new weapons for Ukraine were “badly needed” as “Ukraine is still fighting every day to defend itself against Russian aggression, such as large-scale drone attacks.”
In doing so, Ukraine is also fighting for freedom and security in Europe.
Posting a clip of his interview for Dutch TV NPO2, the country’s defence minister Ruben Brekelmans said the Netherlands was “taking the lead in supplying military equipment from American stockpiles,” arguing that “by steadfastly supporting Ukraine, we increase the pressure on Russia to negotiate.”
On Monday night, Ukrainian president Volodymyr Zelenskyy confirmed he spoke with Schoof on the phone, and welcomed the contribution by saying “this will definitely help protect the lives of our people.”
Diageo warns of costly impact of US tariffs
Diageo, maker of Guinness, Smirnoff vodka and Johnnie Walker whiskey, has said Donald Trump’s tariffs on wine and spirits will reduce its profits by €173m (£150m).
The world’s biggest spirits maker is the latest company in the EU to reveal the high cost of the US president’s new tariff trade wars.
On Tuesday it forecast flat 2026 sales, raised its estimate of the impact from tariffs, and hiked its cost-savings target by about €108m.
The EU had hoped wines and spirits would remain duty free after Trump and European Commission president sealed the tariff deal at Trump’s Scottish golf course eight days ago but negotiations are ongoing.
Sources say talks on spirits are more advanced than for wine.
Updated
Morning opening: Increase the pressure on Russia, says Ukraine
At least one person died, and 12 were injured after another round of Russian attacks on Ukraine overnight, with Ukrainian president Volodymyr Zelenskyy accusing Russia of trying to “intimidate frontline cities and communities” by attacking civilian targets.
Zelenskyy’s most senior aide, Andriy Yermak, was more blunt:
“Their war is with the civilian railway, trains, residential buildings. Ukraine strikes at military targets, Russia – whatever it can reach.”
But responding to the attacks, Zelenskyy once again called on the US and the EU to turn up the pressure on Russia by fast-tracking much-promised sanctions and secondary sanctions on countries supporting its war.
“The world is now seeing that sanctions against Russia and secondary sanctions against all those who help it profit from oil can work if they are strong enough. So the pressure must be increased, and it will certainly work for peace,” he said.
His comments come a day before US special envoy Steve Witkoff is expected in Moscow for another round of high-level talks with Russia, possibly with President Vladimir Putin.
Elsewhere, I will be looking at the latest from the European Commission on the EU-US tariff deal, and will bring you all other key updates from across Europe here.
It’s Tuesday, 5 August 2025, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
