WSJ What’s News – Episode: EU Gets Tariff Deadline Extension

Release Date: May 27, 2025

In this episode of WSJ What’s News, the Wall Street Journal delves into the pressing geopolitical and economic developments shaping the global landscape. Hosted by Azhar Sucri, the episode covers the escalating tensions between the United States and the European Union over trade negotiations, the ongoing Russia-Ukraine conflict, and Canada's strategic maneuvering under its new Prime Minister, Mark Carney.

1. Escalating US-EU Trade Tensions

Azhar Sucri opens the discussion by highlighting the extension of the European Union's deadline for trade talks with Washington. This extension comes as President Trump grows impatient with the protracted negotiations, which have stymied the implementation of punitive tariffs on European products.

Key Highlights:

• Trump's Frustration: President Trump is reportedly considering abandoning peace negotiations with Russia if they fail to yield swift results. Sucri notes, “President Trump is weighing sanctions against Moscow this week as he grows frustrated by Russian President Vladimir Putin's intensifying attacks on Ukraine” (00:49).

• Trade Deficit Concerns: Brussels reporter Kim MacRail emphasizes the significance of the US-EU trade relationship, stating, “The trade relationship is huge. The EU is the US's biggest trading partner and vice versa” (02:59). She explains the nuanced trade balance, pointing out that while there is a goods trade deficit, the US enjoys a services surplus, slightly mitigating the overall deficit.

• Sticking Points in Negotiations: MacRail outlines the primary obstacles in the talks:

  • Value-Added Tax (VAT): Trump has raised concerns about the EU’s VAT system, viewing it as a barrier to US goods entering the European market. “[...] European countries rely on the value added tax for a lot of their revenue,” MacRail explains (04:01).
  • Food Safety and Digital Regulations: Additional points of contention include the EU's stringent food safety standards and digital regulations, which Trump perceives as restrictive to US businesses.

• Timeline and Prospects: With the deadline now set to July 9, MacRail anticipates potential breakthroughs at upcoming OECD meetings in Paris. However, she remains cautious, noting, “We haven't seen at this stage any signs of a real breakthrough right now” (05:21).

Notable Quote:

“President Trump is weighing sanctions against Moscow this week as he grows frustrated by Russian President Vladimir Putin's intensifying attacks on Ukraine.” — Azhar Sucri (00:49)

2. Russia-Ukraine Conflict Intensifies

The episode sheds light on the deteriorating situation in Ukraine as Russia continues its aggressive military campaign.

Key Highlights:

• Russian Assaults: Following Trump's public condemnation, Russia launched its most significant drone and missile attack on Ukraine to date. Ukrainian President Volodymyr Zelenskyy has condemned these strikes and is urging for renewed economic sanctions against Russia.

• Trump's Changing Stance: Initially hesitant to impose further sanctions, Trump has now delayed the implementation of 50% tariffs on EU products, choosing to extend the deadline in hopes of reaching a trade agreement (01:49).

Notable Quote:

“I'm not happy with what Putin's doing. He's killing a lot of people and I don't know what the hell happened to Putin.” — President Donald Trump (01:33)

3. Market Movements and Economic Updates

Azhar Sucri transitions to broader market news, highlighting movements in global and domestic markets influenced by the unfolding geopolitical events.

Key Highlights:

• US Stock Futures: Indicate a higher opening post the extended tariff deadline.

• China’s Industrial Profits: Rose by 3% in April, up from 2.6% the previous month, driven by strategic trader activities amidst rising US-China trade tensions.

• Corporate Updates:

  • Southwest Airlines: Announces a new fee structure, charging $35 for the first checked bag starting the following day.
  • Upcoming Earnings: Nvidia and Salesforce are set to report their earnings, which could influence market trends.
  • Economic Indicators: Anticipation for the May Consumer Sentiment index and the April PCE Prices index, a key Fed inflation metric.

• SpaceX Developments: Elon Musk's SpaceX plans another test of its Starship, aiming for a Mars mission next year.

Notable Quote:

“US Stock futures are pointing to a higher open after the long weekend.” — Azhar Sucri (05:58)

4. Canada’s Strategic Positioning Under Prime Minister Mark Carney

The episode shifts focus to Canada, where newly appointed Prime Minister Mark Carney is charting a course to redefine the nation's relationship with the United States amidst the trade tensions.

Key Highlights:

• Speech from the Throne: King Charles will preside over Canada's first parliamentary session under Carney, signaling the importance of the administration's agenda. Daniel Bark discusses with Colin Robertson, a former Canadian diplomat, the implications of this event.

• Carney’s Agenda:

  • Redefining US Relations: Emphasizing sovereignty and seeking trade diversification to mitigate dependence on the US market.
  • Domestic Reforms: Reducing internal trade barriers, investing in infrastructure, enhancing defense capabilities, cutting taxes, and addressing housing shortages.

• Diplomatic Strategies: Carney is tactfully balancing respect for President Trump while asserting Canada's autonomy. Inviting King Charles serves as both a diplomatic gesture towards the monarchy, which Trump admires, and a subtle assertion of Canadian sovereignty.

• Trade Diversification Efforts: Emphasizing the need to explore opportunities beyond the US, including Europe and the Indo-Pacific region, leveraging Canada’s extensive network of free trade agreements.

Notable Quotes:

“Mark Carney's perspective, there's an audience of one, and that's Donald Trump, who more than anyone else appreciates that statecraft is statecraft.” — Colin Robertson (08:22)

“You have to respect our sovereignty.” — Colin Robertson on Canada’s diplomatic stance (10:22)

Conclusion

The episode encapsulates a critical moment in global affairs where trade negotiations, geopolitical conflicts, and strategic national policies intersect. The extension of the EU tariff deadline underlines the fragile nature of international trade relations, while the intensifying conflict in Ukraine and Canada's proactive stance reflect the broader implications for global stability and economic growth.

Produced by: Kate Bullivant and Daniel Bark
Supervising Producer: Christina Rocher
Host: Azhar Sucri

For those seeking a comprehensive understanding of today’s top headlines and business stories influencing the world, this episode of WSJ What’s News delivers in-depth analysis and expert insights.