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Europe Hopes To Avoid the Worst: A Possible Agreement With the USA This Weekend?
EU scrambles to avert tariff showdown as U.S. threatens up to 70% duties on exports
▪️ Europe faces a July 9 deadline from Washington to reach a trade deal or risk crippling tariffs by August 1.
▪️ Customs duties could rise to 70% on EU exports if no agreement is reached.
▪️ Brussels is pushing for a last-minute agreement to avoid a transatlantic trade war that could reshape global economic alignments.
As global trade dynamics continue to shift, Europe finds itself cornered by a hard deadline imposed by the U.S. administration. Former President Donald Trump—who is leading current trade policy—has issued an ultimatum: reach a bilateral deal by July 9 or face punitive tariffs beginning August 1.
Brussels is scrambling to de-escalate the situation. In a tense climate of accelerated diplomacy, an EU delegation is currently in Washington negotiating to prevent a tariff confrontation that could destabilize key European industries.
Tariff Escalation Threatens to Ignite Trade War
Trump’s unilateral move stems from an April proposal to reform U.S. foreign trade strategy. Since then, 12 official letters have been dispatched to major trade partners, including the EU, signaling a shift toward aggressive bilateralism. Key elements of the proposed sanctions include:
▪️ Tariffs ranging from 10% to 70% on EU exports, effective August 1, 2025,
▪️ Criteria based on trade imbalances, targeting countries with high export volumes to the U.S.,
▪️ Departure from WTO multilateral principles in favor of direct economic pressure.
“I hope we will have an agreement this weekend. Otherwise, Europe will probably have to show more strength in its response to restore balance,” said French Economy Minister Éric Lombard on Saturday.
Europe Braces for a Return to Protectionism
Facing an increasingly hostile trade environment, European leaders are debating whether to adopt more assertive protectionist policies. Lombard signaled that the EU should prepare to erect its own customs barriers, not only against the United States but also against China, which is often accused of unfair trade practices.
“It’s like a playground where everyone plays hopscotch with supervisors and rules. Then three bullies arrive and ignore all the rules,” Lombard said, pointedly referring to the U.S., China, and Russia.
This metaphor underscores Europe’s growing concern: a breakdown of multilateralism and the rise of a raw-power economic order, where strategic autonomy and hardline trade responses may be the only path to survival.
Crypto Markets Eye Opportunity Amid Geopolitical Shifts
As tensions mount, financial markets are beginning to price in geopolitical risk. Digital assets, especially Bitcoin (BTC), are gaining attention as a hedge against rising trade uncertainty and weakening trust in fiat currencies.
A full-scale tariff war could accelerate capital flows into decentralized assets, particularly if U.S.-EU monetary tensions fuel inflation or currency instability.
Institutional investors are keeping a close watch on this weekend’s negotiations, knowing that failure could trigger new volatility cycles and place crypto back at the center of global hedging strategies.
Trade Turbulence May Force Europe Toward Greater Sovereignty
If talks collapse, the resulting tariffs could cripple EU exporters and amplify imported inflation, especially in key sectors like machinery, automotive, and luxury goods.
In the medium term, this would likely strengthen Europe’s resolve to pursue industrial and monetary sovereignty—possibly accelerating moves toward:
- A more unified EU trade policy,
- Greater investment in European supply chains, and
- Broader exploration of digital currencies and decentralized finance to reduce reliance on U.S.-led systems.
A return to protectionism—if confirmed by Washington’s actions—could mark a turning point for global trade, ushering in a new era defined by sovereignty-first economic policy.
@ Newshounds News™
Source: CoinTribune
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ECB President Christine Lagarde Warns Stablecoin Adoption Might Lead to ‘Privatization of Money’
Lagarde urges caution as stablecoins challenge central banks’ role in safeguarding monetary sovereignty
▪️ Christine Lagarde warns that stablecoins should not be treated as money, highlighting risks to financial sovereignty.
▪️ Privately issued stablecoins could undermine central banks’ ability to conduct monetary policy.
▪️ The ECB advocates for a public alternative through the forthcoming digital euro.
Speaking at a central bank forum in Portugal, European Central Bank (ECB) President Christine Lagarde issued a direct warning about the growing use of stablecoins. She argued that these digital assets, issued by private companies like Tether (USDT) and Circle (USDC), pose a significant challenge to public financial institutions and blur the line between money, payments, and infrastructure.
“I think that we are falling prey to some confusion between money, means of payment, and payment infrastructure… accelerated by the technology that is being used,” said Lagarde.
The Rise of Stablecoins: A Threat to Monetary Sovereignty?
Lagarde’s remarks reflect mounting concern within global central banks over stablecoins’ role as money substitutes. By mimicking the value of fiat currencies but existing outside of central bank control, stablecoins threaten to erode public trust in traditional monetary frameworks.
“My fear is that this blurring of the lines… is likely to lead to a privatization of money. I don’t think that this is the purpose for which we’ve been appointed… nor is it good for this public good that is money,” she emphasized.
Stablecoins, often used for digital commerce, cross-border payments, and DeFi transactions, operate independently of national monetary systems, which weakens central banks’ ability to implement effective monetary policy.
ECB’s Digital Euro: A Public Answer to Private Innovation
To counteract the growing influence of private digital currencies, the ECB is pushing forward with the digital euro—a central bank digital currency (CBDC) designed to retain public control over digital money.
Lagarde has long championed the digital euro as both a tool of sovereign economic policy and a technologically advanced public payment option. In June, she reaffirmed that the digital euro is nearly ready for launch, pending final regulatory clearance.
The digital euro aims to balance innovation with monetary stability, ensuring that digital transactions do not shift the power of money creation and policy away from democratic institutions.
A New Financial Paradigm: Who Should Control the Money Supply?
The ECB’s messaging marks a broader philosophical debate: Should money remain a public good managed by central banks, or shift toward private issuers in the name of innovation and convenience?
Stablecoins, which were originally introduced to simplify crypto trading, are increasingly used as real-world proxies for fiat currencies, raising profound regulatory and economic implications.
Lagarde’s warning comes amid growing international calls to regulate stablecoins, particularly as their adoption rises among retail and institutional users alike. The clash between centralized public finance and decentralized digital currencies is now a defining tension of modern monetary policy.
@ Newshounds News™
Source: Bitcoin.com
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Musk Announces Formation of ‘America Party’
Tech mogul launches third-party bid, slams “uniparty” politics and GOP spending bill
▪️ Elon Musk announced the formation of the “America Party”, a new political faction aiming to disrupt the U.S. two-party system.
▪️ The move follows a poll on X (formerly Twitter) where users backed the idea of a third party by a 2-to-1 margin.
▪️ Musk, a vocal critic of both Democrats and Republicans, framed the party as a return to “freedom” and common sense, declaring the U.S. lives under a “one-party system.”
On Saturday, tech billionaire Elon Musk made headlines again—this time in the political arena. In a post on X, which he owns, Musk wrote:
“By a factor of 2 to 1, you want a new political party and you shall have it… Today, the America Party is formed to give you back your freedom.”
Shortly after, a live page for the America Party went public, gaining over 19,000 followers in hours. The page emphasizes a platform “built on common sense, not consultants.”
Tensions with Trump and the GOP Spark Third-Party Bid
The launch comes after Musk threatened to form a third party in response to the GOP’s recent spending package. Musk criticized the legislation for stripping electric vehicle (EV) credits, a direct blow to Tesla, one of his core businesses.
“The way we’re going to crack the uniparty system,” Musk wrote, “is by using a variant of how Epaminondas shattered the myth of Spartan invincibility at Leuctra: Extremely concentrated force at a precise location on the battlefield.”
Musk, historically a Republican-leaning donor, is now shifting focus toward building a new base, appealing to voters disillusioned with both major parties.
Bannon Calls for Musk’s Deportation Over Third Party Move
The announcement sparked backlash from Trump’s former chief strategist Steve Bannon, who attacked Musk’s citizenship and motivations.
“Only a foreigner could do this… Elmo the Mook, formerly known as Elon Musk… He should be deported,” Bannon said on his War Room podcast.
Bannon accused Musk of undermining American politics and suggested potential legal actions to challenge his role in forming a party he sees as un-American.
Trump Responds: DOGE Probe and Subsidy Accusations
In response, President Trump hinted at launching a federal probe into Musk’s businesses through the Department of Government Efficiency (DOGE)—a department previously led by Musk.
“Elon may get more subsidy than any human being in history… No more rocket launches, satellites, or electric car production,” Trump wrote, calling for DOGE to examine Musk’s government ties.
The president claimed Musk has profited from “BIG MONEY” in federal aid and subsidies, suggesting his companies are overly dependent on taxpayer funds.
What Comes Next?
With U.S. elections approaching, the America Party could draw support from independents and swing voters dissatisfied with traditional party politics. However, the move also opens Musk to intense political and legal scrutiny, particularly as tensions with Trump escalate.
Whether this initiative gains real traction or remains symbolic, it reflects a growing crack in America’s bipartisan system, now challenged by one of the most influential entrepreneurs in the world.
@ Newshounds News™
Source: The Hill
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