President Donald Trump has announced he’s levying tariffs of 30% against the European Union and Mexico starting Aug. 1.

The EU has reverted to offering the US tit-for-tat tariff reductions on cars, with negotiators abandoning the idea of a complex “netting mechanism” first proposed by German carmakers.

The European Commission wants to open up part of its proposed 2 trillion euro EU budget for 2028-2034 to nuclear energy, a move likely to divide the bloc's member states, which Germany immediately rejected.

The EU executive proposed on Wednesday a long-term budget boosted to two trillion euros ($2.3 trillion) as Europe confronts complex challenges, from overseas competition to Russian aggression at its borders.