July 24, 2025: EU-China trade tensions mount and US tariff threats loom, while Ukraine battles internal turmoil, Gaza aid crisis rifts German government.

24/07/2025 14 min

Listen "July 24, 2025: EU-China trade tensions mount and US tariff threats loom, while Ukraine battles internal turmoil, Gaza aid crisis rifts German government."

Episode Synopsis

At the EU-China Summit, which marks 50 years of diplomatic ties, the atmosphere is tense, described as "no beautiful birthday" due to deep-seated trade imbalances and China's "more or less open support" for Russia's war in Ukraine. Europe is now concerned about Chinese export controls, particularly on battery technology, reversing earlier fears of European tech outflow to China. Beijing's robust subsidies have allowed it to dominate the e-auto and battery market, putting European manufacturers like Volkswagen, BMW, and Mercedes at risk of not accessing modern batteries. While cooperation on climate protection remains a shared hope, there are doubts about China's willingness to make significant concessions. The summit itself was notably shortened by China, and little in the way of major announcements or a joint climate communiqué is expected. Germany's Chancellor Merz and his advisors are closely monitoring these developments.Simultaneously, the European Union is intensely engaged in trade negotiations with the United States, proposing a 15 percent tariff deal, including on cars, to avert the imposition of higher duties by Donald Trump. Should this deal fail, the EU is prepared to unleash "bazooka" countermeasures, which could involve imposing tariffs on €93 billion worth of U.S. goods. The United Kingdom is also navigating its own complex trade landscape, having recently inked a tariff-cutting trade deal with India, which significantly reduces tariffs on goods like whisky and cars, though the migration aspect related to national insurance contributions is still under negotiation. Prospects for a new UK-US trade deal are mixed, with challenges remaining on steel tariffs and hopes of avoiding tariffs on pharmaceutical products.Meanwhile, Ukraine faces significant internal turmoil as widespread protests have erupted against President Zelenskyy's anti-corruption law, which controversially removed the independence of anti-corruption agencies. In response to the public outcry and pressure from top EU officials, Zelenskyy has promised a new law to ensure the independence of these institutions. However, this episode has been highly damaging to Ukraine's international standing, endangering its EU accession bid and access to crucial funding needed during wartime. Concerns are mounting that the country is grappling with "the danger of autocratic government from within" and a slowing pace of reforms.Concurrently, the Gaza crisis is causing internal rifts within the German government and increasing pressure on the European Union. Within Germany's Foreign Office, a group of around 130 diplomats, operating under the motto "loyal nonkonform," has voiced growing discontent with German policy towards Israel, advocating for a stronger focus on international law and greater distance from Israel's actions in Gaza. Regarding humanitarian aid to Gaza, Israel's Foreign Minister blames the United Nations for aid distribution failures, claiming hundreds of trucks are idling inside Gaza. The UN, however, disputes this, citing "immense logistical challenges," bureaucratic hurdles, and security risks imposed by Israel. EU officials, contradicting Israel's assessment, affirm that Israel is falling short of its commitments to increase aid deliveries, leading to calls from a group of 10 EU countries, including France, for new measures to increase pressure on Israel, potentially even downgrading relations. Ursula von der Leyen herself has described images of starvation in Gaza as "unbearable" and called on Israel to fulfill its pledges.

More episodes of the podcast Meanwhile in Europe