Brussels Edition: A charm offensive on trade

Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union.The EU is stepping up it

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Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. The EU is stepping up its charm offensive to avoid a brutal trade clash with Donald Trump's administration. Trade Commissioner Maros Sefcovic and Commision President Ursula von der Leyen's head of cabinet will meet today in Washington with senior American officials, ahead of Trump's threatened "reciprocal" tariffs next week. The EU has created more space for talks by delaying the first part of the bloc's robust countermeasures against Washington's metals duties. Officials in Brussels are aware of the difficulties of negotiating with the Trump team, partly because of the long list of angry trade partners knocking at its door. Meanwhile, Trump said yesterday he will announce tariffs on automobile imports in the coming days — and sowed further confusion by indicating that some nations could receive breaks from the "reciprocal" tariffs. — Jorge Valero

What's Happening

New Weapon | Trump also appeared to invent a new weapon of economic statecraft yesterday by threatening what he dubbed "secondary tariffs" on countries that buy oil from Venezuela. The threat, delivered via Truth Social post then confirmed in an executive order, said countries could face 25% tariffs on trade with the US if they purchase oil and gas from Venezuela, which is already under heavy US sanctions. More Talks | US and Russian officials met in Saudi Arabia for about 12 hours yesterday, a day after American and Ukrainian teams held talks, as Trump pushes for progress in achieving a ceasefire in the war. The two sides discussed the safety of navigation in the Black Sea and were expected to release a statement on Tuesday, Russia's Tass news service reported. US Disdain | The exposure of private texts between top US officials offered unique insight into their planning for strikes against Houthi militants earlier this month while also laying bare the full extent of their disdain for European allies. A back and forth between Vice President JD Vance and Defense Secretary Pete Hegseth, exposed as part of an Atlantic magazine story on the texts, highlighted how they believe European allies were "free-loading" off US efforts to go after Houthi militants in Yemen. Picking Up | Business activity in the euro area reached its highest level in seven months in March as manufacturers recovered more than expected ahead of Germany's massive defense and infrastructure spending plan. France also outpaced expectations as factories regained some ground. The bloc's economy is benefiting from the general rearmament drive in response to doubts about the US military commitment. Industry Support | EU industries like mining and steel should get "special treatment" because of their sensitivity, according to the latest version of an EU energy tax bill we saw. The bill seeks to ensure that while industries should move toward cleaner fuels, the EU should provide "appropriate support" if they have higher energy costs.

Around Europe

Diplomatic Status | Geneva is fighting to remain relevant as the hotspot for international diplomacy. That's after Trump not only picked Riyadh for high-level meetings with Russian and Ukrainian officials but is also pushing international organizations and agencies into funding crises after he pulled the US from the WHO and cancelled most of USAID contracts. Moscow Plots | Austria said it uncovered a Russian disinformation campaign in the country and in neighboring Germany aimed at damaging Ukraine. An alleged Bulgarian spy working with Russian operatives disseminated what looked like pro-Ukrainian messaging using extremist right-wing language to create distrust in Kyiv's leadership. War Memory | Demonstrators gathered in Belgrade to protest a government contract with Trump's son-in-law Jared Kushner to develop a hotel complex. The crowd demanded the government rescind the deal and restore protected status to the former Yugoslav defense ministry building, destroyed in NATO's 1999 bombing aimed to stop Serbia's military offensive in Kosovo. Money Needed | Greenland's critical raw materials provide a "new opportunity" to bolster the territory's economy but it needs purchase commitments from either the US or the EU, the head of the island's largest bank told us. That's because production costs are high and the minerals aren't concentrated enough.

Chart of the Day

German software developer SAP has unseated Danish weight-loss drug maker Novo Nordisk as Europe's most-valuable public company. SAP shares have risen 40% in the past year, reaching a market value of about €312 billion as the firm pushed to accelerate customers' shift from traditional on-site servers to IT infrastructure on the cloud. It also recently adding a range of new artificial-intelligence products. Novo Nordisk has declined 18% this year due to disappointing trials of its next-generation weight-loss shot.

Today's Agenda

All times CET 12 p.m Press conference by Commission Vice President Stéphane Séjourné on the first list of Strategic Projects under the Critical Raw Materials Act 2 p.m. Council President Antonio Costa speaks at EPC event 3 p.m. Parliament President Roberta Metsola, Energy Commissioner Dan Joergensen speak at conference on Europe's housing crisis EU agriculture ministers meet in Brussels Commission President von der Leyen has working lunch with EU ambassadors EU health ministers hold informal meeting in Warsaw

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