Friday’s developments spanned trade disputes, political shifts, and international diplomacy, underscoring the challenges facing Europe’s economies and governments.
The European Union and Japan sought reassurances over US tariffs, Germany’s truckmakers took a hit from fresh duties, Nigel Farage’s Reform UK gained momentum in polling, and Britain strengthened ties with Canada.
EU and Japan confident of US tariff limits
The European Union and Japan expressed confidence that US President Donald Trump would respect previously agreed limits on tariffs covering pharmaceuticals, semiconductors, and lumber.
Trump has threatened to impose duties of 100% on pharmaceuticals starting next week, but the EU and Japan pointed to joint statements with Washington that capped such tariffs at 15%.
A European Commission spokesperson said the ceiling “represents an insurance policy that no higher tariffs will emerge for European economic operators.”
European Trade Commissioner Maros Sefcovic, speaking in Hanoi, said he expected Washington to uphold the agreement, noting that it had followed through on lowering car tariffs.
Japan likewise cited its bilateral statement confirming tariff parity with the EU.
Truck tariffs drag Daimler and Traton shares
Shares in Germany’s Daimler Truck and Traton fell on Friday after Trump announced a 25% tariff on heavy-duty trucks starting October 1.
The measure adds to trade tensions already straining the automotive sector.
The announcement came despite a July deal between Brussels and Washington that set a 15% baseline tariff for almost all EU goods entering the US, including cars.
Analysts at Citi estimated that tariffs on trucks assembled in Mexico could impact Daimler Truck’s earnings by €700–800 million ($818–934 million), though the company may offset about half through price adjustments.
Neither Daimler Truck nor Traton exports trucks directly from Europe to the US, but both operate factories in the US and Mexico covered under the USMCA free trade pact.
Farage’s Reform UK emerges as the leading opposition force
Nigel Farage’s Reform UK would be in pole position to form a government if an election were held now, according to a YouGov projection released Friday.
Based on polling of 13,000 adults, the party would win 311 seats in the House of Commons, up from just five last year, while Labour would see its majority collapse to 144 seats from 411.
Although Farage’s tally would fall 15 seats short of an outright majority in the 650-seat chamber, he would be best placed to lead the next government.
Prime Minister Keir Starmer is not required to call an election until mid-2029, but the poll underscores the challenges facing Labour after a series of scandals and policy reversals.
Farage has capitalised on voter discontent, especially around immigration, to strengthen his party’s support.
UK and Canada discuss trade and security
UK Prime Minister Keir Starmer met with Canadian Prime Minister Mark Carney in London on Friday to discuss trade and security cooperation, according to a statement from Carney’s office.
Talks focused on deepening trade ties through ratification of the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Both leaders also emphasised closer economic and security cooperation between London and Ottawa.
The meeting covered global challenges as well, including conflicts in the Middle East, the war in Ukraine, and Russia’s incursions into NATO airspace.
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