EUR News
LAST UPDATE: August 27, 2025
EU to Propose Removing US Tariffs This Week to Meet Trump Demand
The EU plans to fast-track legislation to remove tariffs on U.S. industrial goods by week’s end in response to President Trump’s demand—potentially a step toward lowering U.S. auto tariffs on EU exports.
Insight
This maneuver reflects urgent EU-U.S. trade diplomacy, signaling a potential thaw in tensions and readiness to compromise to facilitate broader negotiations and prevent economic friction.
UK producer price inflation rises to two-year high in June
June producer output prices rose 1.9% YoY—the highest in two years—while input prices fell 1.0%. This interim data follows a reporting suspension due to past errors, with normal releases resuming in October.
Insight
Rising output prices signal renewed inflationary pressure upstream, reinforcing expectations of persistent consumer inflation and complicating the Bank of England’s policy decisions.
Switzerland Likely to Avoid Deflation: SNB’s Martin to L’Agefi
SNB Vice President Antoine Martin said Switzerland likely won’t face deflation and anticipates inflation to rise. He indicated a cautious approach to further rate cuts, mindful of negative rate side effects.
Insight
The SNB suggests a fragile but improving outlook, signaling that policymakers remain vigilant about avoiding deflation while balancing the implications of ultra-low rates for the banking sector.
Dutch Government Faces No-Confidence Vote as Turmoil Deepens
Dutch PM Dick Schoof and his cabinet face a no-confidence motion in parliament that could force them to resign, triggering a major political crisis.
Insight
The motion signals deep political instability and could lead to early elections.
