Europe’s EV sales rebound, but consumer doubts remain

After a slowdown last year, electric vehicle sales in Europe are powering ahead. But adoption is uneven, and lingering consumer doubts over batteries and costs threaten to slow the charge.

Europe'selectric vehicle(EV) market is thriving in 2025, marking a robust recovery. From January to April, over 2.2 million electrified vehicles were registered across theEuropean Union, Switzerland, Norway and Iceland, according to the European Automobile Manufacturers' Association.

This figure, encompassing battery-electric vehicles (BEVs), hybrid-electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs), reflects a 20% surge compared to the same period in 2024. BEV registrations alone soared by 26%, signaling strong momentum in the shift to zero-emission driving.

TheUnited Kingdommirrored this trend, with BEV, HEV and PHEV registrations climbing 22.8% to 486,561 units from January to April. Pure electric models led the charge, with sales surging by over a third.

This rebound offers relief to Europe's automotive industry, which is grappling withrising production costs, fierce competition from Chinese EV manufacturers and stringent EU carbon emissions regulations. The sector now faces new challenges, including potentialtariffsoncars exported to the United States, as threatened by US PresidentDonald Trump.

In 2024, EV registrations plummeted across Europe, particularly in major markets likeGermanyandFrance, though hybrids bucked the trend with nearly 30% year-on-year growth. The downturn stemmed from multiple factors.

Germany, Europe's largest car market, abruptly ended EV subsidies in 2023 due to budget constraints, betting that declining vehicle prices would sustain demand. However, the loss of incentives — ranging from €3,375 ($3,854) to €9,000 based on vehicle cost — deterred price-sensitive consumers, leading to a 27.4% drop in BEV registrations.

France faced a broader auto market downturn, driven by economic uncertainty and stricter EV subsidy eligibility rules. This impacted EV sales and led to sharp declines in petrol and diesel vehicle deliveries, compounding the industry's problems.

The recovery was anticipated to come from growing consumer enthusiasm for EVs, fueled by advances in battery range and expanded charging infrastructure. While these factors contributed, auto analysts attribute the primary driver to a January 1 EU mandate requiring automakers to cut fleet-wide CO2 emissions by 15% from 2021 levels.

This regulation spurred a surge in corporate sales, particularly in Germany, allowing carmakers to avoid hefty EU fines.

"To avoid fines for excessive emissions [on sales of petrol and diesel models], vehicle manufacturers were told to increase sales ofEVs, through price discounts or more cost-effective models,"Sandra Wappelhorst, research lead at the Berlin-basedInternational Council on Clean Transportation Europe, told DW.

In recent months, German automakers like Volkswagen as well as Stellantis have rolled out attractive leasing deals and launched new EV models, incentivizing companies to accelerate fleet electrification. Corporate buyers, who account for roughly two-thirds of car sales in Germany compared to just 20% in France, have been a key force behind the rebound.

Constantin Gall, an analyst atthe consulting firm EY,highlighted that the price gap between internal combustion engine vehicles and EVs has "significantly narrowed." He added that automakers are "offering highly competitive financing and leasing terms for electric vehicles," further boosting corporate adoption across Europe.

With automakers having to bear the cost of not meeting the emissions targets, they lobbied hard in Brussels to have them cut. Last month, the European Council, the EU's political authority, approved the easing of the annual targets for the next three years, to reduce potential fines.

Wappelhorst is disappointed at the rollback, arguing that regulatory pressure has proven effective in helping EV adoption. She noted that the current rebound in EV registrations mirrors a similar emissions deadline during the COVID-19 pandemic that also boosted sales. She cautioned that the three-year relief now "risks slowing the EV transition just as momentum builds."

The EV transition remains patchy across Europe, withNorwayand Denmark leading the way and other Western European countries close behind. Registrations inBulgaria, Croatia, Poland and Slovakia, however, remain below 5%.

"Even in these lower-share countries, new BEV registrations have increased significantly," Wappelhorst said, noting howPolandrecently saw an over 40% growth rate. "This pattern underscores the positive momentum across European markets, including those where the transition isin its early stages."

Public enthusiasm for EVs, meanwhile, isn't growing as fast as policymakers would like. An AlixPartners survey last year found interest in electric vehicles stagnant at 43% compared to 2021, with hybrids favored as a practical alternative due to lower charging concerns.

Similarly, a Bloomberg Intelligence survey conducted last month revealed that only 16% of European car buyers preferred BEVs, while 49% supported hybrids.

Charging infrastructure also remains a critical barrier. Although Europe surpassed 1 million public charging points in 2025, GridX energy research projects a need for 8.8 million by 2030. To meet this target, installations must accelerate to nearly 5,000 new chargers per week, GridX said.

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For the rest of 2025, Tesla’s fortunes will remain in focus after its sales plummeted 39% from January to April across Europe. The decline stems partly from a backlash against CEOElon Musk’scontroversial support for far-right groups, notably Germany’sAlternative for Germany, ahead of the federal election in February. His backing sparked accusations of political interference and led to vandalism of Tesla properties and vehicles.

Musk's deepening political involvement, including his role as a key adviser to Trump, has further eroded Tesla's brand appeal, with some owners distancing themselves fromthe world's richest man. His decision to step back from political duties last week leaves uncertainty about whether Tesla can reverse its sales slide.

While Tesla stumbles, automakers fromChinaare gaining ground, thanks to heavy state subsidies that are undercutting European and Japanese rivals. Despite EU tariffs aimed at curbing the influx of low-cost Chinese EVs, China's market share in Europe surpassed 5% for the first time in the first quarter of 2025, according to Bloomberg. JATO Dynamics reported a 546% year-on-year surge in Chinese plug-in hybrid registrations.

After aggressive marketing, Chinese brand BYD overtook Tesla in European sales for the first time in April, registering 7,231 vehicles compared to Tesla's 7,165, a 169% increase from April 2024, according to JATO Dynamics.

This shift underscores the fast-changing dynamics of the European auto market, now that China has caught up on the technology front. Despite this, last month's Bloomberg Intelligence survey found that support for domestic brands remained strong in Europe's five largest markets, with more than two-thirds of respondents saying they were hesitant to buy Chinese cars.

Editor's note: This story was first published June 11, 2025 and was updated on June 12 with details of the latest Bloomberg Intelligence survey.

Large anti-tourism protests planned across Spain

Overcrowded city centers and housing shortages that displace locals are among the many reasons why Spanish residents are protesting the influx of tourists.

Protests against mass tourism are starting up again just in time for the summer vacation season. They follow in the footsteps of large-scale anti-tourism demonstrations in vacation hot spots inItaly, Portugal and especiallySpainin recent years.

The coalition of activists and campaigners that make up Sur de Europa contra la Turistizacion (Southern Europe against Touristification) have once again called forlarge-scale demonstrationson June 15 in Venice, Milan, Lisbon, San Sebastian, Valencia,Barcelonaand the Balearic Islands, among other places.

Members of the group recently met for a conference in Barcelona to discussovertourism, which according to the UN World Tourism Organization is usually defined as the point at which locals or visitors feel tourism has negatively impacted the quality of life in a region to an unacceptable degree.

That is the case for many people in Barcelona, where large-scale demonstrations with thousands of participants have taken place in recent years. Also in the mix are attention-grabbing tactics involving water guns.

In 2024, protesters in Barcelona doused unsuspecting tourists dining along the popular promenade of Las Ramblas in order to draw attention to the problem ofovertourism. It worked — a media flurry followed, as did several other incidents involving water guns, which have become something of a symbol of the fight against overtourism in Barcelona. In April, for example, activists blocked a tour bus parked in front of theSagrada Família— one of the city's top attractions — and soaked stunned tourists with water guns. Chants of "tourists go home," were heard in the air.

"The kind of tourism we have today in Barcelona is not compatible with the lives of the local population," Daniel Pardo, a member of the Neighborhood Assembly for Tourism Degrowth (Assemblea de Barris pel Decreixement Turístic), told DW. Pardo has been involved in organizinganti-tourism campaignsfor years. He and others want to stop rampant tourism growth which they say has resulted in noisy streets, air pollution and overcrowding in their city. "The moment when it was still possible to find a balance came to an end a long time ago."

Pardo specifies that it's not only about protesting mass tourism, but rather about going against a "tourism-first culture" that prioritizes the tourism industry over the quality of life of many locals.

Around 30 million tourists visit Barcelona a year, a city that is home to around 1.7 million people. The majority came from Italy, France,the United KingdomandGermany, followed by the United States. According to city officials, the tourism industry generates around 14% of the city's gross domestic product and supports 150,000 jobs.

"Yes, that's always used as an argument for why we shouldn't complain," said Pardo. "But we are still complaining!" Many jobs in tourism are rife with precarious labor conditions with wages that are below average. "Ultimately, dependence on tourismimpoverishes the population."

The level of frustration is also high on the Spanish island ofMallorca. Just like in Barcelona, there will be a demonstration in the capital of Palma on June 15 under the motto: "For the right to a dignified life: Let's stop the touristification." Other popular vacation spots on the Balearic Islands, as well as in Andalusia, in the Basque Country and on theCanary Islandshave also criticized what they see as a "tourism-first" mentality taking over their cities. Topping the list of complaints is the increasing number of short-term vacation rentals, which critics say are partly to blame for rising rents that push out locals.

But the short-term rental market is only one aspect of how touristic areas are changing. In some Spanish vacation towns, traditional retail is also disappearing. It's becoming easier to find an ice cream parlor or souvenir store than say, a bakery or supermarket. As a result, locals feel alienated and are moving away.

"Tourism is driving us out of our homes, villages and neighbourhoods," Spanish group Menys Turisme, Mes Vida (Less Tourism, More Life) writes on their website in the call to protest on June 15.

In 2024, citizens around Spain also took to the streets to demonstrate against rampant tourism, yet despite the backlash — and the water gun splashes — tourists don't seem to be dissuaded from visiting. In fact, the country is predicting record numbers of tourists in 2025.

In 2024, almost 94 million international travelers came to the country, making it the world's second most popular tourist destination afterFrance. According to a recent study by tourism lobby group Exceltur, the number of short-term rentals has jumped 25% in Spain over the last two years, despite the ongoing housing crisis.

The government has, however, made some recent attempts to mitigateovertourism. In recent months, there has been stricter regulation of vacation rentals. The central government inMadridrecently made it obligatory for short-term rental providers to register their properties in a newly created database in an effort to prevent illegal offers. And in mid-May, the Spanish Ministry of Consumer Protection orderedAirbnbto delete around 65,000 apartment listings that did not include the required registration numbers.

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Last June, Barcelona's city council announced it would abolish short-term vacation rentals by 2028, and that licenses will no longer be renewed after they expire. Yet, for better or worse, tourism is one of the main pillars of Barcelona's economy. The growth of the sector has played an important role in the economic revival of the city, say city officials.

However, Jordi Valls, the city official responsible for tourism, admits that tourism in Barcelona cannot continue to grow at the current pace. "We are reaching our limit," he said.

Activist Daniel Pardo acknowledges that "at least no politician dares to openly call for further growth" of the city. But he pointed out that more concrete action needs to be taken to mitigate the problem and improve the lives of residents.

"We need a real debate about the limits of tourism," he said. The upcoming protest, he hopes, will see that debate happening sooner.

This article was originally written in German.

FIFA Club World Cup: What you need to know

The Club World Cup is set to kick off in the United States to crown the world's best – with more teams than ever before. But it is far from universally loved.

On June 14, the FIFA Club World Cup kicks off in a new, vastly expanded format.

"It will be like aWorld Cup," FIFA President Gianni Infantino said in late 2022 when he announced his plans for this expanded Club World Cup with 32 teams. Until now, only the six winners of the continental club championships and a club from the host country had taken part. Infantino's main goal for the new format is that it will generate increased revenue.

The "new" Club World Cup is to be held every four years beginning in 2025. In the intervening years, the FIFA Intercontinental Cup will be played – following the old Club World Cup format. FIFA is planning to introduce a Women's Club World Cup in 2026.

The teams are divided into eight groups of four, with each team facing the other three in their group once. The top two teams in each group qualify for the round of 16 – at which point play continues in a knockout format through to the final.

If a knockout-stage match is tied after 90 minutes, there will be two 15-minute periods of extra time. If the score is still tied, the match will be decided in a penalty shootout follows. Unlike the World Cup there will be no third-place match.

The games will be played in 12 stadiums, all of which are in east of the United States, apart from Los Angeles and Seattle on the Pacific coast. The tournament opens on June 14 in Miami with the first match of Group A between the winner of the African Champions League, Al Ahly FC of Egypt, and MLS club Inter Miami, where Lionel Messi now plays. The final is slated for July 13 in New York.

Europe has the most participants, with 12 teams. The last four winners of the Champions League qualified plus the eight-best ranked teams in Europe over the past four years. Germany is represented byBayern MunichandBorussia Dortmund.

South America has six teams, Asia and Africa have four teams, as does the region of North and Central America plus the Caribbean (CONCACAF). Oceania is represented by Auckland City FC of New Zealand.

In its 2024 financial report, FIFA projected revenue of $2 billion (€1.75 billion) for this year's Club World Cup, with $1 billion to go to the participating clubs. FIFA will shell out just over half of this in participation  payments – although this is not evenly distributed among the clubs.

Some UEFA clubs receive the most. Under a special ranking that combines the clubs' sporting and commercial value, the payments per European club range between $12.8 million and $38.2 million. According to Bayern Munich CEO Jan-Christian Dreesen, the Bundesliga champions will receive around $30 million. Auckland are to receive just over a tenth of that.

$475 million will be distributed as performance bonuses: for wins and draws in the group stage, for winning a group, and for advancing through the knockout rounds. The winner of the tournament receives $40 million in prize money, while the other finalist takes home $30 million. If a European club wins the Club World Cup, they could take home more than $125 million.

Opinions are divided. The participating clubs are pleased about the generous financial rewards and have therefore been muted in their criticism. Many critics, though, point to the already overcrowded football calendar, arguing that this additional four-week tournament gives the players even less time to rest and recover – further increasing the risk of injury.

Some Bayern Munich and Borussia Dortmund players will be on their way to the USA with their clubs just a few days after they were involved in theNations League Finals. If any of these players were to reach the final on July 13, he would be left with under six weeks to go before the start of the newBundesligaseason on August 22.

Another point of criticism is the scheduling conflict with the Gold Cup (June 14 to July 6), the continental championship of the national teams of North and Central America and the Caribbean, will also be played in the USA and Canada. FIFA has exempted the clubs participating in the Club World Cup from the usual obligation to release players to their national teams.

The Club World Cup could also distract football fans from the first 11 days of the Women's Euros, which is taking place in Switzerland (July 2 to 27).

Ticket sales have been slow. Thousands of tickets are still available for the opening match in Miami. FIFA has since drastically reduced ticket prices for the match to prevent the embarrassment of TV images of empty stands. There are even plenty of tickets left for the final. No wonder: the cheapest ticket costs $766.

Therestrictive entry policies introduced by President Donald Trump's administrationmay deter some foreign fans from attending the tournament. The currentprotests in Los Angeles, one of host cities, also seem unlikely to encourage anyone to make a last-minute trip to the Club World Cup.

This article was originally published in German.

Germany names squad for Women’s Euros

There were no major surprises as Germany women's coach Christian Wück nominated his final squad for this summer's Euro 2025 in Switzerland. Germany are looking to go one better than the last tournament.

Entering his first major tournament since taking over asGermanycoach last summer, Christian Wück has gone with a good deal of experience in his 23-player squad for the July 2-27European Championshipin Switzerland.

Captain Giulia Gwinnand Bayern Munich teammate Lea Schüller, as well as Sara Däbritz and Kathrin Hendrich, are among 11 players who were part of the Germany team that made the final in England in 2022 — where they finished second after being defeated 2-1 by the hosts.

Also included in the squad is Freiburg's 20-year-old attacking talent Cora Zicai.

In a statement on the website of the German Football Association, Wück described the squad as "good and balanced" and designed to be able to "find the right solutions for the challenges" of the monthlong tournament.

"We want to play with a mixture of joy, enthusiasm, will and conviction — that's what this squad stands for. If we manage to do that, we can go very far," he said.

Wück added that in light of Germany's last few matches in the Nations League, they were approaching the tournament with a "boost" in self-confidence, but he declined to state a specific goal for his team.

Germany have won their last five Nations League games with little trouble, the most recent being a 6-0 victory over Austria earlier this month.

As expected, defender Felicitas Rauch and Eintracht Frankfurt striker Nicole Anyomi were not included in the 23-player roster. The two had recently caused a bit of controversy by criticizing the national team coach over what they said was a lack of communication with omitted players.

Also absent is Bayern Munich starLena Oberdorf, who is still recovering from a cruciate ligament injury suffered last July.

Germany, winners of the tournament a record eight times, are up against Poland, Denmark and Sweden in Group C. Their opening match is against Poland in St. Gallen on July 4.

Ryanair to fine unruly passengers €500 or more

The fines will be a "minimum" punishment, and it will continue to seek civil damages for compensation for the costs incurred in more serious cases.

Ryanair, Europe's largest airline, announced Thursday that it willimpose finesstarting at €500 ($579) on passengers whose disruptive behavior leads to their removal from a flight.

The budget carrier said it hopes the fine will serve as "a deterrent to eliminate this unacceptable behavior onboard our aircraft."

"It is unacceptable that passengers are made to suffer unnecessary disruption because of one unruly passenger's behavior," aRyanairspokesperson said.

Ryanair said disruptions were "caused by a tiny number of unruly passengers."

In one incident in January, the airline sought more than €15,000 in damages after a flight from Dublin to Lanzarote, in Spain's Canary Islands, was diverted to the Portuguese city of Porto due to a disruptive passenger.

A Ryanair flight from Glasgow to Krakow in June 2024 was diverted to Rzeszow, Poland, due to a disruptive passenger. The passenger  was convicted in court and fined €3,230.

The airline has amended its terms and conditions to allow fines to be "taken directly from the card used to make the booking."

Ryanair, which transported more than 200 million passengers between 2024 and 2025, had called on the European Union to limit the sale of alcohol at airports.

Far-right parties surge across Europe

While the far-right Alternative for Germany (AfD) party continues to be isolated in the German political scene, similar populist parties are gaining momentum in other EU countries.

Germany's domestic intelligence agency, the Federal Office for the Protection of the Constitution (BfV), has classified theAlternative for Germany (AfD)as "confirmed right-wing extremist." Germany's other political parties want mostly nothing to do with it. Some politicians have evencalled for it to be banned.What does the situation look like inthe rest of Europe?

Geert Wilders' Party for Freedom (PVV) recently caused the four-party coalition that it led to collapse because it had not cracked down hard enough on migration in its view. "I proposed a plan to close the borders for asylum-seekers, to send them away, to shut asylum shelters. I demanded coalition partners sign up to that, which they didn't," Wilders told reporters. "I signed up for the strictest asylum policies, not for the demise ofthe Netherlands."

New elections are now planned for autumn.

Although his party became the strongest force in the parliamentary elections,Wildersdid not become head of government because he was deemed too radical by his coalition partners. Instead, independent politician Dick Schoof was nominated prime minister of the Netherlands.

If it were up to Wilders alone, he would ban all new mosques and the Quran. He is also a vocal critic of green strategies to tackle climate change, and he views the European Union as being too overbearing.

Wilders is in complete control of his party, of which he is the sole registered member; even deputies and ministers are officially only supporters of the PVV. This allows Wilders to decide on the party program alone and appoint all election candidates himself.

TheLaw and Justice party (PiS)was defeated in the parliamentary elections at the end of 2023; Donald Tusk, the liberal former European Council president, has governedPolandas prime minister since then. But the PiS holds the presidency, and can use a veto to put the brakes on government policy.

This has not changed since the presidential election at the end of May 2025,which was narrowly won by PiS-backed Karol Nawrocki,who ran an anti-European, and anti-German, campaign.

Generally, however, as a party the PiS is rather cautious in Brussels, since it knows that the funds from the EU are important for Poland. It has also positioned itself on Ukraine's side in the war with Russia and advocates a strong NATO presence against its powerful neighbor.

In terms of migration policy, however, the party shares the same hardline views of its European allies. On social issues, it is close to the Catholic Church in Poland and opposes the legalization of abortion, same-sex marriage and adoption.

Fidesz-Hungarian Civic Alliance is probably the most successful far-right party in Europe. Thanks to its leaderViktor Orban, the party was in power inHungarybetween 1998 and 2002 and continuously again since 2010. Founded in 1988, shortly before the collapse of communism, as a radical liberal force, the party remained on this course for a long time.

But Orban and his party has swung to the right since at least 2015, when German Chancellor Angela Merkel proclaimed a "welcome culture" for refugees. Fidesz is now explicitly in favor of illiberal democracy, seeing the "Christian West" as threatened by foreign infiltration and wanting to strongly limit the influence of the EU.

In stark contrast to the Polish PiS, the party has sought contact with Russia,despite the war in Ukraine, particularly on energy issues. Orban is also close to Russian President Vladimir Putin on an ideological level.

However, unlike similar parties, the party does recognize human-made climate change as a threat.

Smer was founded by currentSlovakian Prime Minister Robert Fico.Called Direction-Slovak Social Democracy, the party direction is clearly to the right and the social democracy it advocates has little to do with Germany's style of social democracy. Smer has warned that Slovakia is becoming too "foreign."

Fico has said that Muslims are not able to integrate and in 2016 he said that Islam had no place in Slovakia.

He has described the Ukrainians that Russia has attacked as "Nazis and fascists" and before the 2023 parliamentary elections, in which Smer emerged victorious, he announced that he would put an immediate stop to arms deliveries to Ukraine.

He went on to do this, claiming that NATO and the United States were responsible for Russia's attack on Ukraine. This triggered protests acrossSlovakia.

Fico's government has repeatedly criticized the EU's sanctions against Russia as being "meaningless and counterproductive."

Vox (Latin for voice), whose leader is Santiago Abascal, has risen fast since the party was founded in 2013. In the 2016 parliamentary elections, it won only 0.2% of the votes. This went up to 15% in 2019. Since then, its success has slumped somewhat.

The party is nonetheless the third strongest political force inSpainat the moment. However, it has never participated in a federal government. The conservative Partido Popular (Popular Party) might have been willing to form a coalition with it, but instead it was the socialist Pedro Sanchez who formed a government.

Vox's main concern is specific to Spain: The party believes that the self-government rights of autonomous communities such asCataloniaor the Basque Country should be revoked and that Spain should once again become a centralized state. There is also a particular Spanish flavor to the party's anti-immigration and anti-Islamic tones: Abascal has called for a new Reconquista. The first, which ended in 1492, was a series of campaigns waged by Christian rulers against Muslim kingdoms that had ruled the Iberian Peninsula for centuries.

At the beginning of February, Vox hosted a major event called "Make Europe Great Again" in the Spanish capitalMadrid.Participants included Hungarian Prime Minister Viktor Orban and French far-right politician Marine Le Pen.

The Danish People's Party was founded in 1995 and had its most successful period in the 2000s and 2010s. With its anti-immigration, anti-globalization and anti-EU positions, combined with demands for a strong welfare state, it provided support for several center-right governments in the Danish capitalCopenhagen.Notably, it was able to push through a tightening of the asylum system.

But support for the party dwindled after 2019 as Denmark's Social Democrats, led by Mette Frederiksen, not only adopted its anti-asylum demands but also pushed them through. The People's Party only received 2.6% of the vote in the last parliamentary election in 2022. Theimmigration and asylum policyofDenmark'scurrent Social Democratic government is one of the toughest in Europe.

This article was originally written in German.

China, UK trade deals with Trump pile pressure on EU

Following Britain, China has struck a trade deal with the US, President Donald Trump has announced. Meanwhile, the EU is still pondering its way out of tariff hell, and US officials make clear it is back of the line.

After London comes Beijing:US President Donald Trumpannounced a breakthrough in talks with China to put an end to their rapidly escalating tariff war on Wednesday night, though the details of the agreement remain unclear, and key elements are still awaiting formal approval.

"Ourdeal with Chinais done, subject to final approval with President Xi [Jinping] and me," Trump wrote on his social media platform, Truth Social. "Full magnets, and any necessaryrare earths, will be supplied, up front, by China. Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)"

One day later, the scope of the deal remains uncertain. Neither Trump nor US officials had clarified which tariffs might be lifted or what concessions were included, according to The Associated Press news agency. Negotiations appear to be ongoing.

Two months ago, Trump announced a blanket baseline 10%tariffson virtually all goods imported into the US, an event he dubbed "Liberation Day." Higher country-specific rates followed, with Chinese imports hit particularly hard.

Beijing immediately retaliated with sharp increases of its own, sending bilateral tariffs soaring — peaking at 145% in some cases — on a trade relationship worth $583 billion (approximately €503.5 billion) in 2024.

While recent negotiations have helped bring mutual tariffs down, tensions remain. As of mid-May,US tariffs on Chinese goodsaveraged 51%, while Chinese tariffs on US goods stood at 33%, according to the Peterson Institute for International Economics, a US think tank.

The UK and the US struck a much-vaunted deal in early May. However, tariffs on key goods remain in place, pending further implementation.

Compared to China,the EU has so far optedfor a rather restrained approach, with high-level officials engaged in intensive talks.

As of April, most EU exports to the US have faced 10% tariffs. Additional 25% duties on steel andaluminum, imposed in March, remain in effect. The bloc has so far avoided the higher rates slapped on China.

The EU waspoised to hit back with significant countermeasureson everything from whiskey to motorcycles and prepared a second package, though both have been paused as EU-US negotiations continue.

Brussels is pushing for a "zero-for-zero" trade agreement, aiming to eliminate tariffs on industrial goods. So far, talks have stalled. One of Trump's key complaints is the persistent trade imbalance.

In 2024, theUS imported significantly more goodsfrom the EU than it exported, with a trade deficit of $216 billion, according to official US figures. However, the EU frequently argues that the US sells far more services to the bloc than the other way round.

One option the European Commission, which as the EU executive branch represents the 27 member states in negotiations, has proposed is pushing EU companies and countries to buy more natural gas from the US, a shift that is already well under way since it turned away from Russia following its full-scale invasion of Ukraine in 2022.

If all else fails for the EU and Trump resorts to50% tariffsor even higher rates, there has been some discussion of another more radical move from the EU.

"Should Europe retaliate if Trump's tariffs hit on 9 July, and how? If yes, then there seems to be general agreement that, beyond tariffs on goods, US digital services are the most likely and vulnerable target," Tobias Gehrke of the European Council on Foreign Relations posted late last month on social media platform Bluesky.

Gehrke pointed to the EU's Anti-Coercion Instrument, a legal framework which empowers the EU to target services and could limit US companies' access to public procurement contracts in Europe. It came into effect in 2023, but has never been used.

With talks ongoing, US Secretary of Commerce Howard Lutnick has indicated that the bloc is at the back of the line. "I'm optimistic that we can get there with Europe," Lutnick told US broadcaster CNBC on Wednesday. "But Europe will probably be at the very, very end."

On Thursday, US outlet Bloomberg reported that EU officials expect talks to extend beyond the current July 9 deadline, citing unnamed sources close to the negotiations.

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For negotiators, the pressure to wrap up a deal is enormous.

"We'll get this deal done in the best way possible," an EU official told DW on the condition of anonymity. "But it's very clear that not only in the EU institutions, but also around the member states, people just don't want to go through this anymore."

"In the volatile world we're in, everyone wants to have reliable trading partners, and the US just isn't that right now," the source added.

In the coming days, the G7 andNATO summitsin Canada and the Netherlands respectively, might have presented an opportunity for Trump and European Commission President Ursula von der Leyen to meet.

However, the European Commission said on Thursday that no bilateral meetings were currently planned.

"That could still change," Commission spokesperson Miriam Garcia Ferrer told reporters at a briefing in Brussels.

The cuppa that connects us: Coffee drinking across cultures

The beverage's global consumption has been rooted in culture, colonialism, rebellion — and TikTok fame.

Coffee's pop icon status is firmly established — from Starbucks' iconic Frappuccino turning 30 this year to the latestTiktoktrends leading us to try Dalgona or cloud coffee. But beyond fads, coffee has been brewed in ceremonies and sipped in salons across time and geography. Its history is steeped incolonialism; establishments serving it have also fueled revolutionary thinkers.

Today, rising global temperatures and erratic rainfall are hitting farmers hard, leadingcoffee prices to soar to record highs. But the beverage remains — at least for now — an intrinsic part of world culture. Here's a (non-exhaustive) look at how and why it came to be that around 2 billion cups of coffee are reportedly drunk daily worldwide.

Legend credits an Ethiopian goatherd named Kaldi with discovering coffee after he'd noticed his goats becoming frisky from eating red berries. While the story is likely apocryphal, coffee — namely the Arabica variety — is indeed native to Ethiopia's Kaffa region, where it still plays a ritual role.

The Ethiopian coffee ceremony, where beans are roasted over an open flame and brewed in a clay jebena, is a moment of pause, hospitality and community.

In Senegal, cafe Touba— infused with Guinea pepper and cloves — originated fromIslamic Sufi traditionsand is both a beverage and spiritual practice.

In Turkey, unfiltered coffee brewed in a copper cezve is often followed by a reading of the leftover grounds, a centuries-old tradition that is still cherished, even among Turkey's Gen Zs.

In Brazil, the cafezinho — a tiny, sweet shot of coffee — is a symbol of welcome, offered everywhere from homes to street corners.

Finally in 2020, as the world hunkered down during the COVID lockdown, South Korea's Dalgona coffee — instant coffee whipped with sugar and water — exploded on TikTok. Beyond aesthetics, the trend offered people a simple, soothing ritual.

Across cultures, coffee has taken wildly inventive forms. In Nordic countries like Finland and Sweden, black boiled coffee is sometimes poured over cubes of kaffeost, or "coffee cheese," made from cow or reindeer milk, in a centuries-old tradition.

Vietnam's ca phe trung (or egg coffee) blends whipped egg yolk with sweetened condensed milk — a wartime improvisation that is now ubiquitous.

Then there's Indonesia's kopi luwak, often called the "Holy Grail of Coffees," made from partially digested beans that have been eaten and defecated by the Asian palm civet. Though prized for its smooth, fermented flavor, kopi luwak has been ethically controversial. High demand has led some producers to cage and force-feed civets. Others now promote "wild-sourced" versions from free-roaming animals, but third-party verification has been inconsistent.

Coffee didn't just travel in sacks — it traveled with trade winds, spiritual journeys and imperial ambitions.

Though discovered in Ethiopia, the earliest written evidence of coffee cultivation points to Yemen. There, it earned the Arabic term "qahwa" — originally meaning wine — which gave rise to the words coffee and cafe.

Sufi mystics drank it to maintain spiritual focus during long night chants. The port of Mocha on Yemen's Red Sea coast became a center of trade, shipping beans across the Islamic world and into Asia.

Another legend says that an Indian Sufi saint, Baba Budan, smuggled seven fertile beans from Yemen to southern India in the 17th century, defying an Arab monopoly. That act seeded coffee plantations in Karnataka's Chikmagalur region.

Soon, European colonial powers also grasped the bean's potential. The Dutch planted it in Java, the French in the Caribbean and the Portuguese in Brazil — each expansion driven by empire and built on the backs of enslaved labor. Brazil, introduced to coffee in the 1700s, would grow into the world's largest producer.

Even Australia, a latecomer, has developed a robust coffee culture. Fun fact: Both Australia and New Zealand claim to have invented the flat white in the 1980s.

Throughout history, cafes have been more than watering holes — they've been incubators of ideas, art and revolution.

In 16th-century Istanbul, authorities repeatedly tried to ban them, fearing that caffeine-fueled gatherings could spark unrest.

InEnlightenment-era Europe, cafes offered a cup of coffee and a heady dose of radical thought, frequented by thinkers likeVoltaireandRousseau.

In colonial America, coffee became a patriotic substitute for British-taxedtea. Boston's Green Dragon Tavern, dubbed the "Headquarters of the Revolution," hosted meetings of the Sons of Liberty — activists who organized resistance against British rule, particularly unfair taxation and policies that eventually led to the American Revolution.

Over the past decades, cafes have returned as a "third place" — neither home nor office, but somewhere in between. Coffeehouses have also evolved into refuges for modern life.

In the early 1990s, when home internet access was not yet widespread, many cafes started providing public internet access, which drew people to start working from those spaces.

Meanwhile, other cafe owners came up with unusual perks for their businesses.

In Taipei, the world's first cat cafe — Cat Flower Garden — opened in 1998, giving urbanites a cozy space to sip and socialize among feline companions. The trend exploded in Japan and now thrives worldwide, where the blend of caffeine and calm continues to comfort overstimulated cities.

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Hungarian MEP: ‘We took democracy for granted’

Klara Dobrev is head of Hungary's opposition Democratic Coalition and former vice president of the European Parliament. DW spoke to her about the rise of illiberal democracy in Europe and current politics in Hungary.

DW:US President Donald Trump's admiration forHungarian Prime Minister Viktor Orbanwas on full display at the recent CPAC gathering in Budapest, and the architects of Project 2025 say openly that they see Orban's illiberal democracy as the model for Trump's second presidency. What parallels do you see between Hungary and theUnited Statesright now?

Klara Dobrev:We took democracy for granted.

In 2010, we said: "If Orban doesn't deliver, then we will simply defeat him in the next elections." I have heard the same thing from my fellow democrats in the USA. It's not true.

These illiberals, they are attacking the institutions. They are attacking the checks and balances, the correction mechanisms of democracy. They attack themedia, they attack public administration, they attack civil organizations, they attack freedom of speech … You must be able to react on time, before it's too late.

What were the key red flags on the road to "illiberal democracy," and what are the moments of possibility for pushing back?

Dobrev:A politician comes to power in an election, but then there is a moment when he decides not to lose power; he decides to become an autocrat. This is a one-way road.

There is no turning back. That's what we saw withPutin. That's what we saw withLukashenko. That's what we saw withErdoganand that's what we saw with Orban.

Hungarywas once one of the best countries in Central Eastern Europe, with the highest living standards. Now, we are one of the poorest countries in the European Union.

Democracy is the only way you can secure the long-term wellbeing of people. If there is a mistake, you can correct it. If there is a bad policy, you can correct it. If there is no democracy, then you can't correct it.

Now, the tension is so big. People are living in very bad circumstances. We don't have migrant problems, we have the problem that everyone is leaving the country. I definitely think that in 2026 you can really put huge pressure on the government.

Viktor Orban's main political challenger isPeter Magyar, a former Fidesz insider. Why has the Hungarian left not been able to occupy that space?

Dobrev:In 2021, the united opposition (United for Hungary) was ahead of Fidesz in the polls. Unfortunately, a right-wing candidate started to talk against the left parties, and it destroyed this feeling of being united.

I strongly believe that the only way you defeat an illiberal populist is with a broad coalition of Democrats, Conservatives, Liberals, Greens, Social Democrats, Socialists. Together: That's the only way, and that's the only way you can govern a country later on.

This time, again, the opposition is leading. But it will not be enough if we cannot make a broad coalition. You have to bring everyone to the voting booth.

How can a broad coalition be kept together over an issue like defending theBudapestPride march, which is likely to be something supported by urban liberals, but not by more conservative sections of society?

Dobrev:We can have different values about a lot of things, but if you are a democrat, then you definitely must work on the basis thatPride cannot be banned, whatever your opinion about it.

When there is a red flag, there is a red flag. Every politician who considers himself a democrat has to be there on Pride.

That's why I invited the wholeEuropean Parliament. I invited all fellow members from different parties to come and show courage, to participate in Pride. This is exactly the moment when you as a politician have to set an example.

This month, the Hungarian government made a surprising concession: postponing a parliamentary vote onthe Transparency in Public Life billuntil after the summer recess. The bill, which would enable the government to fine — and potentially ban — NGOs, media outlets and journalists it deems to be receiving foreign money and acting against the national interest, has been heavily criticized by rights groups. What dangers do you see in the legislation?

Dobrev:It's not only freezing the funds, it's threatening the journalists or the owners of the media outlets with a fine which is 25 times the funding they receive. So, it's a personal threat, it's not a political threat.

In the 21st century, you don't have to put people in jail, you can silence them very easily.

When this law came out, the majority of the sponsors disappeared. So, you can just simply create an atmosphere where this kind of solidarity within society is not working anymore — and the same with the journalists and media outlets.

When autocracy goes into your soul, into your mind, you don't need external censors. I think the most dangerous attack is not the concrete penalty, the concrete fine. The biggest damage is to the mindset and the soul.

You're a former vice president of the European Parliament, currently a sitting MEP within the Progressive Alliance of Socialists and Democrats (S&D) group. You've seen, from Brussels, how some €18 billion worth of funds have been withheld from Hungary over rule of law concerns. And yet, the democratic backsliding has continued. Has theEUgot it wrong? What would be a more effective approach toward Orban?

Dobrev:Even after 15 years of Orban, Hungarians are pro-European. It's over a thousand years of Hungarian history: We always wanted to be part of Europe, and always someone dragged us out, whether it was the Tartars, the Turks or the Russians.

So, if you put the question in black and white: "Orban or Europe?" then the majority of the people would choose Europe.

It's so painful for me to say this, but Orban could never have built his illiberal regime without European funding, which was coming into the country for 10 years without any proper controls.

All his oligarchs, friends, son-in-law, father — their wealth was stolen from European taxpayers, and it was stolen from the Hungarian people. And with this wealth, they bought the media outlets, they bought the critical companies in energy, in telecommunications, in the banking sector. They bought the land, they bought the country.

That's why we are saying that until these controls are built in, the money should remain in Brussels.

It's there, it's for Hungary, but it cannot go anymore to the Orban family and the Orban oligarchs.

Brussels should really show that Europe is a union of values and democracy, not simply a bunch of countries.

The full interview with Klara Dobrev MEP can be heard onDW's Inside Europe podcast.

Oil prices soar as Iran-Israel tensions shake global economy

Israel's attack on Iran has jolted financial markets, as fears grow of a regional conflict that could disrupt oil supplies. The tensions come at a time of heightened uncertainty, driven by Trump's tariff policies.

The economic fallout ofIsrael'sattack onIran'snuclear and ballistic missile facilities in the early hours of Friday was swift. Oil prices spiked and investors shifted out of stocks and into safe-haven assets, including government bonds and gold.

Crude oil futures jumped by as much as 13% as traders bet thatIsrael's attackwould not be a one-off. The Brent global benchmark for oil prices surged more than 10% to $75.15 per barrel, hitting its highest price in almost five months.

A war of words between the two foes fueled fears of a protracted conflict, with Israeli Prime MinisterBenjamin Netanyahuvowing that the military operation would "continue for as many days as it takes to remove this threat," referring to Tehran developing nuclear weapons.

Iran's Supreme Leader Ayatollah Ali Khamenei, meanwhile, warned that Israel must expect "harsh punishment" for its strikes.

Asian and European stocks declined at the open, with Germany's DAX index hit hardest. The S&P 500 and Nasdaq opened about one percentage point lower later Friday, as traders continued to pour into less-risky investments.

In Europe, the travel and leisure sector was hit hard, energy stocks rallied, along with defense giants, including Rheinmetall and BAE, which spiked between 2-3%.

"The effects of the attack have cascaded across global markets, with a strong risk-off move for several asset classes," wrote Deutsche Bank analysts in a research note.

The analysts said the strikes had spurred "significant fears about an escalation and a wider regional conflict."

Israel and Iran have closed their airspace, along withIraqandJordan. Several airlines canceled flights to the region, as fears rose that the conflict could bring down a plane.

Globally, six commercial aircraft have been shot down unintentionally since 2001, with three near-misses in that time, according to aviation risk consultancy Osprey Flight Solutions.

Rerouting flights, however, is a costly exercise, as it increases journey times and planes require additional fuel.

Fears of further retaliatory attacks by Iran have forced Israeli airlines to relocate some of their planes overseas from Tel Aviv's Ben Gurion Airport.

Flight tracking data showed several jets leaving Tel Aviv on Friday morning local time. Some were flown to Cyprus and elsewhere in Europe, without passengers.

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The Israeli shekel currency slid nearly 2% against the dollar on Friday as Israel announced a "special state of emergency," which appeared to spur some panic buying.

Social media accounts showed scenes of large crowds at supermarkets and empty shelves for some foods.

Israeli media outlet Ynet cited supermarket chain Carrefour reporting a 300% increase in footfall on Friday.

An all-out war between Israel and Iran could disrupt energy markets and trade routes in the region, which would have ripple effects globally.

The Middle East isa major global oil-producing region, home to some of the world's largest oil reserves and producers.

Iran is the third-largest oil producer in the region, behind Saudi Arabia and Iraq. Despite international sanctions on its oil exports, the Islamic Republic still delivers significant amounts of crude to China and India.

Barclays analyst Amarpreet Singh warned in a research note that in a worst-case scenario, "the conflict could expand to other key oil and gas producers in the region, and shipping."

All eyes are now on the Strait of Hormuz, a narrow waterway between Iran, the United Arab Emirates and Oman, a key choke point for the global oil trade. If it were to be closed, as Iran has threatened several times, oil tankers would be stranded and oil prices could spike even higher.

About a fifth of the world's total oil consumption passes through the strait — around 18-19 million barrels per day, according to the US Energy Information Administration (EIA).

The price of oil affects the prices consumers pay for everything from fuel to food.

The Israel-Iran tensions are escalating at a time of heightened uncertainty in financial markets, driven by US PresidentDonald Trump'son, off, on-againtariff policies.

The threat of steep levies on imports to the United States has already disrupted global trade and rattled investors. These tariffs have spiked costs for consumers and businesses, slowing economic activity worldwide.

A prolonged conflict between Israel and Iran could worsen these pressures as every 10% increase in the price of oil adds about 0.4% to consumer prices over the subsequent year, a 2019 analysis by FXStreet found.

A multi-front conflict involving Iran-backed groups like Hezbollah in Lebanon or theHouthisin Yemen could paralyze shipping and tourism.

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The Houthis began attacking commercial vessels in the Red Sea in late 2023, another critical area for global trade.

The attacks caused an increase in shipping rates and promptedglobal shipping giants to reroute vesselsaround the Horn of Africa, which added time and huge costs to journeys.

Peter Sand, chief analyst at the Copenhagen-based Xeneta research, said any further rerouting would raise shipping rates, with "carriers likely also pushing for a ‘security surcharge’ on these trades."

Reuters news agency reported that Greece and the UK have advised their merchant shipping fleets to log all voyages through the Strait of Hormuz following the latest escalation.

Disruptions to regional gas supplies, including Israel’s Tamar field or Gulf exports of liquefied natural gas (LNG), would also add pressure to European and Asian energy markets.

Israel's economy is already strained by the ongoing Gaza conflict, and a broader war with Iran could potentially push costs to $120 billion or 20% of GDP, according to Israeli economist Yacov Sheinin.

Iran remains in economic crisis due to international sanctions over its nuclear program, which have limited its oil exports. The Iranian rial remains weak and inflation is stubbornly high at around 40%. Any further disruption to oil exports would ripple globally.

While analysts recently lowered the odds of a downturn, the combination of Trump's tariffs and a lasting Middle East war would significantly raise the risk of a global recession.

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