In March 2025, the European Union’s exports to the United States surged by 56% compared to the same period a year earlier, driven by a rush to deliver goods before new U.S. tariffs, announced by President Trump, took effect in April. This export spike resulted in a record €37 billion trade surplus in goods for the EU with the U.S. Pharmaceuticals, especially from Ireland where many American drug companies operate manufacturing sites, were the primary contributor to the increase, reflected in the EU’s overall “chemicals” export category. Additionally, exports of food, raw materials, and machinery to the U.S. also rose significantly. This trend parallels the U.S.’s global trade deficit, which reached a record $140.5 billion in March, highlighting a broader pattern of trade imbalances intensified by tariff-related economic activity.

The Swiss National Bank (SNB) reported a constructive dialogue with the U.S. regarding currency matters. SNB Chief Thomas Jordan emphasized the importance of such exchanges in maintaining financial stability and addressing mutual concerns over currency valuations and market interventions.

The Basel Committee on Banking Supervision has decided to prioritize the assessment and management of financial risks related to climate change, despite pressure from the U.S. to downplay such risks. The committee plans to release a voluntary disclosure framework for climate-related financial risks to guide national regulators. While the committee lacks enforcement power, its standards strongly influence global banking regulations. The approach largely aligns with European and British regulatory strategies, which have embedded climate considerations into banking supervision. Conversely, the United States, under growing political resistance, has pulled back from several climate-focused initiatives.

UK Chancellor Rachel Reeves received a short-term boost from a stronger-than-expected 0.7% GDP growth in Q1 2025, driven by a 5.9% rise in business investment and strong exports, particularly to the U.S. However, economists caution that this growth may not be sustainable and could be front-loaded due to companies anticipating new trade barriers from a U.S. trade war. Despite this economic uplift, public finances remain under pressure as government borrowing has consistently exceeded forecasts, casting doubt on Reeves’ fiscal rules and potentially necessitating tax hikes or spending cuts in the autumn Budget.

Sir Keir Starmer’s popularity has plummeted to its lowest point according to new YouGov polling, especially among Labour voters. Once enjoying a 62% favorable rating within his party, that number has fallen to 45%, marking his first net negative rating among core supporters. Analysts attribute the decline to Starmer’s shift to the political right, with controversial moves including cuts to international aid, stricter welfare reforms, and new immigration restrictions.

Poland’s central bank reported that net inflation stood at 3.4% year-on-year in April, aligning with market expectations. The data indicates a stabilization in price growth, providing the central bank with room to adjust monetary policy if necessary.

Poland’s upcoming presidential election is seen as a critical test for the pro-European Union government. The outcome could influence the country’s future relationship with the EU and its stance on democratic values. The election pits pro-EU candidates against nationalist contenders, reflecting broader tensions within the EU regarding governance and integration.

EU digital policy chief Henna Virkkunen on Friday urged closer cooperation between the United States and Europe on tech regulation as Brussels prepares to implement new digital rules. The call for collaboration aims to align regulatory approaches and address shared challenges in the digital space.

Swiss National Bank Chairman Martin Schlegel stated that the central bank could reintroduce negative interest rates if necessary to maintain price stability, despite the current rate being at 0.25%.