President Donald Trump on Sunday predicted Cuba’s government could soon collapse and threatened Colombia’s president, a stark warning that underscored his administration’s increasingly aggressive posture toward leftist governments across Latin America. For good measure, he reiterated his desire to annex Greenland, as well. The comments made aboard Air Force One as the president returned to Washington came less than 48 hours after the American military conducted a brazen raid inside Caracas to arrest and detain Venezuelan leader Nicolás Maduro and his wife. “Cuba looks like it’s ready to fall,” Trump said. I don’t know if they’re going to hold out.” The president waved off the possibility that the administration might use American forces to hasten the Cuban government’s demise, explaining that Venezuela was Cuba’s primary economic backer. “Cuba only survives because of Venezuela,” Trump said. Many presidents have predicted the communist government’s fall and Havana survived the collapse of the USSR. And yet Trump’s remarks highlighted the extent to which his administration is not only expecting regime change in multiple countries but openly hoping for it, even amid uncertainty about the future of Venezuela. “Don’t ask me about who’s in charge [of Venezuela] because it will be controversial,” Trump said. “We’re in charge.” Trump said he wants to rebuild the country — particularly its oil infrastructure — before having an election so the people can elect their own leader. Commerce Secretary Howard Lutnick implied that steel and aluminum industries could be revived for U.S. benefit as well. For now, he said, he is willing to work with Delcy Rodriguez, the acting president and Maduro’s vice president. Trump said he expects Rodriguez and the new Venezuelan government will allow the U.S. unfettered access to their country so that American forces can help rebuild. But, he added, “if they don’t behave, we will do a second strike.” The administration maintains that targeting Maduro was, in large part, an effort to stop the drug trade. Trump also threatened Colombia President Gustavo Petro, a vocal critic of the U.S. operation in Venezuela. “Colombia is very sick too — run by a sick man who likes making cocaine and sending it to the United States, and he’s not going to be doing it very long,” Trump said. And just hours after the Danish Prime Minister blasted Trump for threatening to annex Greenland, the president said the United States “needs” the autonomous Danish territory. “We need Greenland from a national security situation,” Trump said. “The EU needs us to have Greenland.”

BRUSSELS — The fight between Brussels and Washington over tech rules is officially high politics — and shows no sign of stopping in 2026.  Last week the United States sanctioned a former top European Commission official, alleging he was a “mastermind” of the bloc’s content moderation law. The travel ban was a sign the Trump administration is ramping up its attacks on what it calls Europe’s censorship regime.  The pressure puts Brussels between a rock and a hard place.  EU leaders like France’s Emmanuel Macron and European Parliament lawmakers dismissed the U.S. move as intimidation and even suggested considering counteraction, ramping up calls for Brussels to hold its ground and reduce the EU’s reliance on U.S. technology.  It suggests that U.S. pressure on the EU’s tech rules is now a full-blown transatlantic dispute of its own, rather than just a sideshow to trade talks, and requires an appropriate response. “The real response must be political,” said Italian Social Democrat lawmaker Brando Benifei, the European Parliament’s lead on relations with the U.S., in response to the American sanctions.  “Our sleepwalking leaders must wake up, because there’s no time left.” While the Commission condemned the U.S. move, its President Ursula von der Leyen offered a muted response, highlighting only the importance of freedom of speech in a post on X. ONLY THE START The U.S. move to impose a travel ban on Frenchman Thierry Breton, who served as the EU’s internal market chief from 2019 to 2024 and led the drafting of the Digital Services Act, marked an acceleration in the U.S. campaign against the EU’s tech rules.  Breton has borne the brunt of criticism over the EU’s tech rules, particularly following his public spat with U.S. President Donald Trump’s one-time ally, X owner Elon Musk. The tech billionaire appears to be back in the president’s good books after a bitter falling-out over the summer. A letter Breton sent in August 2024 to warn Musk ahead of an upcoming livestream featuring then-presidential candidate Trump was repeatedly shared by Trump loyalists after Breton was sanctioned.  Another four individuals were sanctioned, including two from German NGO HateAid, which Berlin’s regulators have said is a “trusted” organization to flag illegal content like hate speech.   The U.S. had previously mainly threatened the EU over its tech rules, or invoked them when the EU demanded concessions from Washington such as lower steel and aluminum tariffs in early December. But after the Commission crossed the Rubicon in early December and imposed its first-ever Digital Services Act fine on Musk’s X, Washington responded with the travel bans.  The EU executive has repeatedly said its enforcement of the DSA is not political, yet Washington insists it is nothing but.  Threats of travel restrictions from the U.S. have been trickling in since the summer, but the Commission has declined to say how it plans to protect its officials.  Both sides still have room — and face internal calls to escalate — in what is now a full-blown transatlantic dispute over the limits of free speech.  Just earlier this month, when the U.S. announced its intention to require social media disclosures from people hoping to enter the country on temporary visas, Commission chief spokesperson Paula Pinho insisted these were only plans and declined to comment on how it would protect its staff working on the DSA.  Pressured by journalists about the impact on staff working on digital rules, she said tech spokesperson Thomas Regnier had no plans to visit the U.S.  Still, the sanctions announced by the State Department may be only a warning shot.  The measures announced last week targeted a former Commission official, not someone currently in office. The U.S. still has many other tools in its arsenal, which U.S. politicians say it should use.  Missouri Republican Senator Eric Schmitt called for the use of Magnitsky sanctions, which are financial measures that can cause significant operational headaches including asset freezes and barring U.S. entities from trading with sanctioned entities.  While they are normally reserved for serious human rights violations like war crimes or the murder of Saudi journalist Jamal Khashoggi, the Trump administration has already used them to go after another person deemed to be a modern agent of censorship.  In July, the Treasury and State departments announced Magnitsky sanctions against Brazilian Judge Alexandre de Moraes, including for suppressing “speech that is protected under the U.S. Constitution.”  De Moraes has drawn the same criticism as EU officials from the Trump administration and its allies, including Musk.  COUNTERACTION The Commission also faces heat from the other side, with EU country leaders and European Parliament lawmakers demanding a more political response to the situation.  The EU’s tech rules have been a regular topic of debate at the Parliament’s plenary sessions, and several lawmakers have indicated the U.S. travel restrictions could be on the agenda for the January session.  German Greens lawmaker Sergey Lagodinsky said the EU should not rule out considering some sort of counteraction.  “Europe must respond. It must raise pressure in the trade talks and consider measures against senior tech executives who actively support the U.S. administration agenda,” he said in a statement shared with POLITICO.  Breton himself accused the EU institutions of being “very weak” in an interview with TF1. Just before the break, in a rare joint address, MEPs from four political groups called for stronger action against U.S. Big Tech companies.  “The small fine against X is a good beginning, but it comes definitely too late, and it’s absolutely not enough,” said German Greens MEP Alexandra Geese. The socialists have tried to kick off a special inquiry committee to figure out if the Commission is strong enough in enforcing the DSA, although support from other groups is lacking.  The Commission has yet to announce its decisions on the meatier part of its DSA probe into X and other platforms.  Others see the U.S. sanctions as another warning to reduce reliance on U.S. technology and build up the EU’s own technological capacity.  “Lovely, but not enough,” Aurore Lalucq, a French MEP and chair of the economic affairs committee, quipped in response to the Commission’s condemnation of the U.S. sanctions.  “We need to build our independence now. It starts with our payment systems, a sovereign cloud, and an industrial policy for digital infrastructure and social networks.”

Donald Trump started his second term by calling the European Union an “atrocity” on trade. He said it was created to “screw” Americans. As he imposed the highest tariffs in a century, he derided Europe as “pathetic.” And to round off the year, he slammed the continent as “weak” and “decaying.” In the midst of all this, Ursula von der Leyen, the EU’s top official, somehow summoned the composure to fly to Trump’s Scottish golf resort to smile and shake hands on a one-sided trade deal that will inflict untold pain on European exporters. She even managed a thumbs up in the family photo with Trump afterwards. Yes, it’s been one hell of a year for the world’s biggest trading relationship. The economic consequences will take years to materialize — but the short-term impact is manifest: in forcing Europe to face up to its overreliance on the U.S. security umbrella and find new friends to trade with. With a warning that the following might trigger flashbacks, we take you through POLITICO’s coverage of Europe’s traumatic trade year at the hands of Trump: JANUARY As Trump returns to the White House, we explore how America’s trading partners are wargaming his trade threats. The big idea? Escalate to de-escalate. It’s a playbook we later saw unfold in Trump’s clashes with China and Canada. But, in the event, the EU never dares to escalate. Trump’s return does galvanize the EU into advancing trade deals with other partners — like Mexico or Latin America’s Mercosur bloc. “Europe will keep seeking cooperation — not only with our long-time like-minded friends, but with any country we share interests with,” von der Leyen tells the World Economic Forum the day after Trump is sworn in. FEBRUARY As Trump announces that he will reimpose steel and aluminum tariffs, von der Leyen vows a “firm and proportionate response.” The bloc has strengthened its trade defenses since his first term, and needs to be ready to activate them, advises former top Commission trade official Jean-Luc Demarty: “Especially with a personality like Trump, if we don’t react, he’ll trample us.” That begs the question as to whether trade wars are as easy to win, as Trump likes to say. The short answer is, of course, “no.” Trade Commissioner Maroš Šefčovič, meanwhile, packs a suitcase full of concessions on his first mission to Washington. At the end of the month, Brussels threatens to use its trade “bazooka” — a trade-defense weapon called the Anti-Coercion Instrument — after Trump says the European Union was created to “screw” America. MARCH We called it early with this cover story by Nicholas Vinocur and Camille Gijs: Trump wants to destroy the EU — and rebuild it in his image. As Trump’s steel tariffs enter force, Brussels announces retaliatory measures that far exceed those it imposed in his first term. And, as he builds up to his “Liberation Day” tariff announcement, the EU signals retaliation extending beyond goods to services such as tech and banking. (None of these are implemented.) APRIL “They rip us off. It’s so sad to see. It’s so pathetic,” Trump taunts the EU as he throws it into the sin bin along with China, Japan, Taiwan and Korea. In his Liberation Day announcement in the White House Rose Garden, Trump whacks the EU with a 20 percent “reciprocal” tariff. Von der Leyen’s response the next morning is weak: She says only that the EU is “prepared to respond.” That’s because, even though the EU has strengthened its trade armory, its 27 member countries can’t agree to deploy it. The bloc nonetheless busies itself with drawing up a retaliation list of goods made in states run by Trump’s Republican allies — including trucks, cigarettes and ice cream. MAY The EU’s hit list gets longer in response to Trump’s Liberation Day tariffs — with planes and automobiles targeted in a €100 billion counterstrike that looks scary on paper but is never acted on.  We report exclusively that Brussels is ramping up contacts with a Pacific trade group called the CPTPP. And we assess the chances of Trump pressuring the EU into a big, beautiful trade deal by threatening to raise duties on European exports to 50 percent. The verdict? Dream on!  JUNE The setting shifts to the Canadian Rockies — where a G7 summit takes on a G6 vs. Trump dynamic as other leaders seek ways to cooperate with him on Russia and China even as he pummels them with tariffs. Von der Leyen tries her best, turning hawkish on China in a bid to find common ground. Back in Brussels, at a European leaders’ summit, von der Leyen announces her pivot to Asia — floating the idea of a world trade club without the U.S. JULY As the clock counts down to Trump’s July 9 deal deadline, the lack of unity among the EU’s 27 member countries undermines its credibility as a negotiating partner to be reckoned with. There’s still hope that the EU can lock in a 10 percent tariff, but should it take the deal or leave it? The deadline slips and, as talks drag on, it looks more likely that the EU will end up with a 15 percent baseline tariff — far higher than Europe had feared at the start of Trump’s term. Brussels is still talking about retaliation but … yeah … you already know that won’t happen. With Trump in Scotland for a golfing weekend, von der Leyen jets in to shake hands on a historic, but one-sided trade deal at his Turnberry resort. Koen Verhelst also flies in to get the big story. “It was heavy lifting we had to do,” von der Leyen said, stressing that the 15 percent tariff would be a ceiling. AUGUST Despite the thumbs-up in Turnberry, recriminations soon fly that the EU has accepted a bad deal. EU leaders defend it as the best they could get, given Europe’s reliance on the U.S. to guarantee its security. The two sides come out with a joint statement spelling out the terms — POLITICO breaks it down. Not only does the EU come off worse in the Turnberry deal, but it also sacrifices its long-term commitment to rules-based trade in return for Trump’s uncertain support for Ukraine. The realization slowly dawns that Europe’s humiliation could be profound and long-lasting. With the ink barely dry on the accord, Trump takes aim at digital taxes and regulation that he views as discriminatory. It’s a blast that is clearly aimed at Brussels. SEPTEMBER The torrent of trade news slows — allowing Antonia Zimmermann to travel to Ireland’s “Viagra Village” to report how Trump’s drive to reshore drug production threatens Europe’s top pharmaceuticals exporter. OCTOBER EU leaders resist Trump’s pressure to tear up the bloc’s business rules, instead trying to present a red tape-cutting drive pushed by von der Leyen as a self-generated reform that has the fringe benefit of addressing U.S. concerns.    NOVEMBER Attention shifts to Washington as the U.S. Supreme Court hears challenges to Trump’s sweeping tariffs. The justices are skeptical of his invocation of emergency powers to justify them. Even Trump appointees on the bench subject his lawyer to tough questioning.  A row flares on the first visit to Brussels by U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. Lutnick presses for concessions on EU digital regulation in exchange for possible tariff relief on steel. “Blackmail,” is the counterblast from Teresa Ribera, the EU’s top competition regulator. DECEMBER The year ends as it started, with another Trump broadside against Europe and its leaders. “I think they’re weak,” he tells POLITICO. “They don’t know what to do on trade, either.”

BRUSSELS — The EU aims to seal a free-trade agreement with India by late January instead of the end of the year as initially envisaged, Trade Commissioner Maroš Šefčovič told POLITICO. “The plan is that, most probably in the second week of January, that [Indian Commerce Minister] Piyush Goyal would come here” for another round of negotiations, Šefčovič said in an interview on Monday. “There is a common determination that we should do our utmost to get to the [free-trade agreement] and use every possible day until the Indian national day,” he added. India celebrates its annual Republic Day on Jan. 26, and both Commission President Ursula von der Leyen and Council President António Costa have been invited as guests of honor. Von der Leyen and Indian Prime Minister Narendra Modi pledged in February to clinch the free-trade agreement (FTA) by the end of the year — something even they recognized would be a steep target. But a number of issues keep gumming up the works, Šefčovič said, including that India is linking its objections to the EU’s planned carbon border tax and its steel safeguard measures with the EU’s own demand to reduce its tariffs on cars. Šefčovič traveled again to New Delhi last week in an effort to clear major hurdles to conclude the EU’s negotiations with the world’s most populous country. “The ideal scenario would be — like we announced with Indonesia — that we completed the political negotiations on the FTA,” Šefčovič said. “That would be my ideal scenario, but we are not there yet.” The EU and Indonesia concluded their agreement in September. “It’s extremely, extremely challenging,” he said, adding: “The political ambition of our president and the prime minister to get this done this year was absolutely crucial for us to make progress.”

President Donald Trump promised that a wave of emergency tariffs on nearly every nation would restore “fair” trade and jump-start the economy. Eight months later, half of U.S. imports are avoiding those tariffs. “To all of the foreign presidents, prime ministers, kings, queens, ambassadors, and everyone else who will soon be calling to ask for exemptions from these tariffs,” Trump said in April when he rolled out global tariffs based on the United States’ trade deficits with other countries, “I say, terminate your own tariffs, drop your barriers, don’t manipulate your currencies.” But in the time since the president gave that Rose Garden speech announcing the highest tariffs in a century, enormous holes have appeared. Carveouts for specific products, trade deals with major allies and conflicting import duties have let more than half of all imports escape his sweeping emergency tariffs. Some $1.6 trillion in annual imports are subject to the tariffs, while at least $1.7 trillion are excluded, either because they are duty-free or subject to another tariff, according to a POLITICO analysis based on last year’s import data. The exemptions on thousands of goods could undercut Trump’s effort to protect American manufacturing, shrink the trade deficit and raise new revenue to fund his domestic agenda. In September, the White House exempted hundreds of goods, including critical minerals and industrial materials, totaling nearly $280 billion worth of annual imports. Then in November, the administration exempted $252 billion worth of mostly agricultural imports like beef, coffee and bananas, some of which are not widely produced in the U.S. — just after cost-of-living issues became a major talking point out of Democratic electoral victories — on top of the hundreds of other carveouts. “The administration, for most of this year, spent a lot of time saying tariffs are a way to offload taxes onto foreigners,” said Ed Gresser, a former assistant U.S. trade representative under Democratic and Republican administrations, including Trump’s first term, who now works at the Progressive Policy Institute, a D.C.-based think tank. “I think that becomes very hard to continue arguing when you then say, ‘But we are going to get rid of tariffs on coffee and beef, and that will bring prices down.’ … It’s a big retreat in principle.” The Trump administration has argued that higher tariffs would rebalance the United States’ trade deficits with many of its major trading partners, which Trump blames for the “hollowing out” of U.S. manufacturing in what he evoked as a “national emergency.” Before the Supreme Court, the administration is defending the president’s use of the 1977 International Emergency Economic Powers Act to enact the tariffs, and Trump has said that a potential court-ordered end to the emergency tariffs would be “country-threatening.” In an interview with POLITICO on Monday, Trump said he was open to adding even more exemptions to tariffs. He downplayed the existing carveouts as “very small” and “not a big deal,” and said he plans to pair them with tariff increases elsewhere. Responding to POLITICO’s analysis, White House spokesperson Kush Desai said, “The Trump administration is implementing a nuanced and nimble tariff agenda to address our historic trade deficit and safeguard our national security. This agenda has already resulted in trillions in investments to make and hire in America along with over a dozen trade deals with some of America’s most important trade partners.” To date, the majority of exemptions to the “reciprocal” tariffs — the minimum 10 percent levies on most countries — have been for reasons other than new trade deals, according to POLITICO’s analysis. The White House also pushed back against the notion that November’s cuts were made in an effort to reduce food prices, saying that the exemptions were first outlined in the September order. The U.S. granted subsequent blanket exemptions, regardless of the status of countries’ trade negotiations with the Trump administration, after announcing several trade deals. Following the exemptions on agricultural tariffs, Trump announced on Monday a $12 billion relief aid package for farmers hurt by tariffs and rising production costs. The money will come from an Agriculture Department fund, though the president said it was paid for by revenue from tariffs (by law, Congress would need to approve spending the money that tariffs bring in). In addition to the exemptions from Trump’s reciprocal tariffs, more than $300 billion of imports are also exempted as part of trade deals the administration has negotiated in recent months, including with the European Union, the United Kingdom, Japan and more recently, Malaysia, Cambodia and Brazil. The deal with Brazil removed a range of products from a cumulative tariff of 50 percent, making two-thirds of imports from the country free from emergency tariffs. For Canadian and Mexican goods, Trump imposed tariffs under a separate emergency justification over fentanyl trafficking and undocumented migrants. But about half of imports from Mexico and nearly 40 percent of those from Canada will not face tariffs because of the U.S.-Mexico-Canada free trade agreement that Trump negotiated in his first term. Last year, importers claimed USMCA exemptions on $405 billion in goods; that value is expected to increase, given that the two countries are facing high tariffs for the first time in several years. The Trump administration has also exempted several products — including autos, steel and aluminum — from the emergency reciprocal tariffs because they already face duties under Section 232 of the U.S. Trade Expansion Act of 1962. The imports covered by those tariffs could total up to $900 billion annually, some of which may also be exempt under USMCA. The White House is considering using the law to justify further tariffs on pharmaceuticals, semiconductors and several other industries. For now, the emergency tariffs remain in place as the Supreme Court weighs whether Trump exceeded his authority in imposing them. In May, the U.S. Court of International Trade ruled that Trump’s use of emergency authority was unlawful — a decision the U.S. Court of Appeals upheld in August. During oral arguments on Nov. 5, several Supreme Court justices expressed skepticism that the emergency statute authorizes a president to levy tariffs, a power constitutionally assigned to Congress. As the rates of tariffs and their subsequent exemptions are quickly added and amended, businesses are struggling to keep pace, said Sabine Altendorf, an economist with the Food and Agriculture Organization of the United Nations. “When there’s uncertainty and rapid changes, it makes operations very difficult,” Altendorf said. “Especially for agricultural products where growing times and planting times are involved, it’s very important for market actors to be able to plan ahead.” ABOUT THE DATA Trump’s trade policy is not a straightforward, one-size-fits-all approach, despite the blanket tariffs on most countries of the world. POLITICO used 2024 import data to estimate the value of goods subject to each tariff, accounting for the stacking rules outlined below. Under Trump’s current system, some tariffs can “stack” — meaning a product can face more than one tariff if multiple trade actions apply to it. Section 232 tariffs cover automobiles, automobile parts, products made of steel and aluminum, copper and lumber — and are applied in that order of priority. Section 232 tariffs as a whole then take priority over other emergency tariffs. We applied this stacking priority order to all imports to ensure no double-counting. To calculate the total exclusions, we did not count the value of products containing steel, aluminum and copper, since the tariff would apply only to the known portion of the import’s metal contentand not the total import value of all products containing them. This makes the $1.7 trillion in exclusions a minimum estimate. Goods from Canada and Mexico imported under USMCA face no tariffs. Some of these products fall under a Section 232 category and may be charged applicable tariffs for the non-USMCA portion of the import. To claim exemptions under USMCA, importers must indicate the percentage of the product made or assembled in Canada or Mexico. Because detailed commodity-level data on which imports qualify for USMCA is not available, POLITICO’s analysis estimated the amount that would be excluded from tariffs on Mexican and Canadian imports by applying each country’s USMCA-exempt share to its non-Section 232 import value. For instance, 38 percent of Canada’s total imports qualified for USMCA. The non-Section 232 imports from Canada totaled around $320 billion, so we used only $121 billion towards our calculation of total goods excluded from Trump’s emergency tariffs. Exemptions from trade deals included those with the European Union, the United Kingdom, Japan, Brazil, Cambodia and Malaysia. They do not include “frameworks” for agreements announced by the administration. Exemptions were calculated in chronological order of when the deals were announced. Imports already exempted in previous orders were not counted again, even if they appeared on subsequent exemption lists.

LONDON — The British government is working to give its trade chief new powers to move faster in imposing higher tariffs on imports, as it faces pressure from Brussels and Washington to combat Chinese industrial overcapacity. Under new rules drawn up by British officials, Trade Secretary Peter Kyle will have the power to direct the Trade Remedies Authority (TRA) to launch investigations and give ministers options to set higher duty levels to protect domestic businesses. The trade watchdog will be required to set out the results of anti-dumping and anti-subsidy investigations within a year, better monitor trade distortions and streamline processes for businesses to prompt trade probes. The U.K. is in negotiations with the U.S. and the EU to forge a steel alliance to counter Chinese overcapacity as the bloc works to introduce its own updated safeguards regime. The EU is the U.K.’s largest market and Brussels is creating a new steel protection regime that is set to slash Britain’s tariff-free export quotas and place 50 percent duties on any in excess. The government said its directive to the TRA will align the U.K. with similar powers in the EU and Australia, and follow World Trade Organization rules. It is set out in a Strategic Steer to the watchdog and will be introduced as part of the finance bill due to be wrapped up in the spring. “We are strengthening the U.K.’s system for tackling unfair trade to give our producers and manufacturers — especially SMEs who have less capacity and capability — the backing they need to grow and compete,” Business and Trade Secretary Peter Kyle said in a statement. “By streamlining processes and aligning our framework with international peers, we are ensuring U.K. industry has the tools to protect jobs, attract investment and thrive in a changing global economy,” Kyle added. These moves come after the government said on Wednesday that its Steel Strategy, which plots the future of the industry in Britain and new trade protections for the sector, will be delayed until next year. The Trump administration has been concerned about the U.K.’s steps to counter China’s steel overcapacity and refused to lower further a 25 percent tariff carve-out for Britain’s steel and aluminum exports from the White House’s 50 percent global duties on the metals. Trade Secretary Kyle discussed lowering the Trump administration’s tariffs on U.K. steel with senior U.S. Cabinet members in Washington on Wednesday.  “We are very much on the case of trying to sort out precisely where we land with the EU safeguard,” Trade Minister Chris Bryant told parliament Thursday, after meeting with EU Trade Commissioner Maroš Šefčovič on Wednesday for negotiations. “We will do everything we can to make sure that we have a strong and prosperous steel sector across the whole of the U.K.,” Bryant said. The TRA has also launched a new public-facing Import Trends Monitor tool to help firms detect surges in imports that could harm their business and provide evidence that could prompt an investigation by the watchdog. “We welcome the government’s strategic steer, which marks a significant milestone in our shared goal to make the U.K.’s trade remedies regime more agile, accessible and assertive, as well as providing greater accountability,” said the TRA’s Co-Chief Executives Jessica Blakely and Carmen Suarez. Sophie Inge and Jon Stone contributed reporting.

The European Commission has lost access to its control panel for buying and tracking ads on Elon Musk’s X — after fining the social media platform €120 million for violating EU transparency rules. “Your ad account has been terminated,” X’s head of product, Nikita Bier, wrote on the platform early Sunday. Bier accused the EU executive of trying to amplify its own social media post about the fine on X by trying “to take advantage of an exploit in our Ad Composer — to post a link that deceives users into thinking it’s a video and to artificially increase its reach.” The Commission fined X on Thursday for breaching the EU’s rules under the Digital Services Act (DSA), which aims to limit the spread of illegal content. The breaches included a lack of transparency around X’s advertising library and the company’s decision to change its trademark blue checkmark from a means of verification to a “deceptive” paid feature. “The irony of your announcement,” Bier said. “X believes everyone should have an equal voice on our platform. However, it seems you believe that the rules should not apply to your account.” Trump administration has criticized the DSA and the Digital Markets Act, which prevent large online platforms, such as Google, Amazon and Meta, from overextending their online empires. The White House has accused the rules of discriminating against U.S. companies, and the fine will likely amplify transatlantic trade tensions. U.S. Secretary of Commerce Howard Lutnick has already threatened to keep 50 percent tariffs on European exports of steel and aluminum unless the EU loosens its digital rules. U.S. Vice President JD Vance blasted Brussels’ action, describing the fine as a response for “not engaging in censorship” — a notion the Commission has dismissed. “The DSA is having not to do with censorship,” said the EU’s tech czar, Henna Virkkunen, told reporters on Thursday. “This decision is about the transparency of X.”

BRUSSELS — U. S. Vice President JD Vance has hit out at the EU’s digital rules enforcement, saying the EU should not be “attacking American companies over garbage.” “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage,” Vance wrote on X overnight. X owner Elon Musk immediately thanked the U.S. official, commenting, “Much appreciated.”  The European Commission opened formal proceedings against X under its Digital Services Act in December 2023, roughly a year after Musk bought Twitter and rebranded it as X. But the EU has yet to finalize its probe, after accusing X of breaching its obligations around transparency and blue checkmarks in preliminary findings in July 2024. A decision could come as early as Friday, according to media reports Thursday. Under the EU rules, companies can be fined up to 6 percent of their annual global turnover. French President Emmanuel Macron last week voiced concerns about the slow pace of Brussels’ probes into American tech giants, adding to a growing chorus of criticism that the bloc has been too slow to enforce its flagship Digital Services Act amid U.S. pressure. Washington has repeatedly asked the EU to roll back its digital rule book as part of trade negotiations, and last week U.S. Secretary of Commerce Howard Lutnick put this on the table again as an explicit exchange for scrapping tariffs on steel and aluminum in ongoing talks. Asked earlier Thursday how she feels about a looming diplomatic showdown if she slaps a fine on a U.S. tech giant, Commission digital chief Henna Virkkunen told POLITICO: “I’m quite calm in different situations. I’m not surprised about anything. I’m protecting our laws. But at the same time we are going to make Europe faster and simpler and easier for businesses.” Asked if she’s afraid of the U.S.’s reaction to a fine under the DSA, Virkkunen responded with a single word: “No.”

BRUSSELS — Europe’s most energy-intensive industries are worried the European Union’s carbon border tax will go too soft on heavily polluting goods imported from China, Brazil and the United States — undermining the whole purpose of the measure. From the start of next year, Brussels will charge a fee on goods like cement, iron, steel, aluminum and fertilizer imported from countries with weaker emissions standards than the EU’s. The point of the law, known as the Carbon Border Adjustment Mechanism, is to make sure dirtier imports don’t have an unfair advantage over EU-made products, which are charged around €80 for every ton of carbon dioxide they emit. One of the main conundrums for the EU is how to calculate the carbon footprint of imports when the producers don’t give precise emissions data. According to draft EU laws obtained by POLITICO, the European Commission is considering using default formulas that EU companies say are far too generous. Two documents in particular have raised eyebrows. One contains draft benchmarks to assess the carbon footprint of imported CBAM goods, while the second — an Excel sheet seen by POLITICO — shows default CO2 emissions values for the production of these products in foreign countries. These documents are still subject to change. National experts from EU countries discussed the controversial texts last Wednesday during a closed-door meeting, and asked the Commission to rework them before they can be adopted. That’s expected to happen over the next few weeks, according to two people with knowledge of the talks. Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. For example, some steel products from China, Brazil and the United States have much lower assumed emissions than equivalent products made in the EU, according to the tables. Ola Hansén, public affairs director of the green steel manufacturer Stegra, said he had been “surprised” by the draft default values that have been circulating, because they suggest that CO2 emissions for some steel production routes in the EU were higher than in China, which seemed “odd.” “Our recommendation would be [to] adjust the values, but go ahead with the [CBAM] framework and then improve it over time,” he said. Antoine Hoxha, director general of industry association Fertilizers Europe, also said he found the proposed default values “quite low” for certain elements, like urea, used to manufacture fertilizers. “The result is not exactly what we would have thought,” he said, adding there is “room for improvement.” But he also noted that the Commission is trying “to do a good job but they are extremely overwhelmed … It’s a lot of work in a very short period of time.” Multiple industry representatives told POLITICO that the proposed estimated carbon footprint values are too low for a number of countries, which risks undermining the efficiency of the CBAM. | Photo by VCG via Getty Images While a weak CBAM would be bad for many emissions-intensive, trade-exposed industries in the EU, it’s likely to please sectors relying on cheap imports of CBAM goods — such as European farmers that import fertilizer — as well as EU trade partners that have complained the measure is a barrier to global free trade. The European Commission declined to comment. DEFAULT VERSUS REAL EMISSIONS Getting this data right is crucial to ensure the mechanism works and encourages companies to lower their emissions to pay a lower CBAM fee. “Inconsistencies in the figures of default values and benchmarks would dilute the incentive for cleaner production processes and allow high-emission imports to enter the EU market with insufficient carbon costs,” said one CBAM industry representative, granted anonymity to discuss the sensitive talks. “This could result in a CBAM that is not only significantly less effective but most likely counterproductive.” The default values for CO2 emissions are like a stick. When the legislation was designed, they were expected to be set quite high to “punish importers that are not providing real emission data,” and encourage companies to report their actual emissions to pay a lower CBAM fee, said Leon de Graaf, acting president of the Business for CBAM Coalition. But if these default values are too low then importers no longer have any incentive to provide their real emissions data. They risk making the CBAM less effective because it allows imported goods to appear cleaner than they really are, he said. The Commission is under pressure to adopt these EU acts quickly as they’re needed to set the last technical details for the implementation of the CBAM, which applies from Jan. 1. However, de Graaf warned against rushing that process. On the one hand, importers “needed clarity yesterday” because they are currently agreeing import deals for next year and at the moment “cannot calculate what their CBAM cost will be,” he said. But European importers are worried too, because once adopted the default emission values will apply for the next two years, the draft documents suggest. The CBAM regulation states that the default values “shall be revised periodically.” “It means that if they are wrong now … they will hurt certain EU producers for at least two years,” de Graaf said.

French President Emmanuel Macron said Brussels is too slow in its handling of probes into American Big Tech companies due to U.S. pressure over the EU’s digital laws. “We have cases that have been before the Commission for two years. It’s much too slow,” Macron said Friday in reference to the EU’s content moderation rule book, the Digital Services Act (DSA). The debate around the matter is “not gaining momentum,” Macron told a local town hall event in the Vosges region, and “many in the Commission and member states are afraid to pursue it because there’s an American offensive against the application of directives on digital services and markets.” Macron promised to push for action at the EU level, adding: “We have a geopolitical battle to fight. This is not Russian interference, it is clearly American because these platforms do not want us to bother them.” Macron’s remarks follow a week that saw renewed pressure from the U.S. over the EU’s two tech rulebooks, the DSA and the Digital Markets Act. U.S. Commerce Secretary Howard Lutnick urged EU ministers on Monday to “reconsider” the rulebooks in exchange for lower U.S. steel and aluminium tariffs, in line with the American playbook of treating the EU’s tech rules as a bargaining chip in a transatlantic trade war. The rules have been a target for the U.S. administration and tech executives ever since President Donald Trump returned to office. Both the EU’s tech chief, Henna Virkkunen, and her competition colleague, Teresa Ribera, came out against the U.S. pressure this week, with the latter accusing Washington of “blackmail.” The European Commission is also under pressure from European Parliament lawmakers, with the Socialists and Democrats group moving to set up an inquiry committee to investigate the EU’s enforcement of digital rules. Responding to Macron’s remarks, European Commission spokesperson Thomas Regnier said: “We have been very clear since the very beginning: We are fully behind our digital legislation and are enforcing it.” He argued that “some cases take a bit more time than others, because the DSA investigations are broad.” “The Commission services are building solid cases, because we have to win them in court,” he said. The EU has investigations open under the DSA into X, Meta, AliExpress, Temu and TikTok. The probes could lead to fines of 6 percent of a company’s annual global turnover, but none have been levied so far.