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Europe’s economy barely grew in the April-June quarter as frantic earlier efforts to ship goods ahead of new U.S. tariffs went into reverse and output fell for the continent’s biggest economy, Germany. Gross domestic product grew an anemic 0.1% compared to the previous quarter in the 20 countries that use the euro currency, the EU statistics agency Eurostat reported Wednesday. Growth was 1.4% over the same quarter a year ago. And prospects are mediocre for the coming months, given the 15% tariff, or import tax, imposed on European goods in the U.S. under the EU-U.S. trade deal announced Sunday. The higher tariff will burden European exports with higher costs to either be passed on to U.S. consumers or swallowed in the form of lower profits. The economy sagged after stronger than expected 0.6% growth in the first quarter, a figure inflated by companies trying to move product ahead of U.S. President Donald Trump’s additional tariff onslaught that was announced April 2, two days after the first quarter ended. Output fell 0.1% in Germany and Italy, while growth of 0.3% in France was boosted by a rise in auto and aircraft inventories while domestic demand was otherwise stagnant. That left Spain as the only strong performer among the four largest eurozone economies at 0.7% With the 15% U.S. universal tariff likely to subtract around 0.2% from the regions GDP, growth is likely to remain weak in the rest of this year, said Franziska Palmas, senior Europe economist at Capital Economics. Germany’s economy remains roughly the same size as it was before the pandemic six years ago, as its export-dominated business sector struggles with multiple issues including stronger competition from China, a lack of skilled workers, higher energy prices, lagging infrastructure investment, and burdensome regulation and bureaucracy. Economist Palmas said that Germany “is likely to be hit harder than other major economies by tariffs and continue to struggle this year” before increased government spending from the new government under Chancellor Friedrich Merz, aimed at making up the infrastructure gap, starts to boost the economy in 2026. On Wednesday, Germanys Cabinet approved a draft 2026 budget that foresees a second consecutive year of record government investment in priorities such as modernizing transport infrastructure, building homes, security and digitization. Spending is set to rise to 126.7 billion euros ($146.2 billion) next year from 115.7 billion euros in 2025. Our top priority is to secure jobs and ensure new economic strength, Finance Minister Lars Klingbeil said. David McHugh, AP business writer Geir Moulson contributed to this report.
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E-Commerce
Chinas top leaders have pledged to help companies slammed by higher U.S. tariffs but held back on major moves after trade talks with the U.S. this week kept businesses and planners in limbo. At their summer economic planning meeting, the powerful Politburo of the ruling Communist Party pledged to stabilize foreign trade and investment. We must assist foreign trade enterprises that have been severely impacted, strengthen financing support, and promote the integrated development of domestic and foreign trade, the official Xinhua News Agency said in reporting the closed door meeting. It mentioned export tax rebates and free trade pilot zones but gave no other specifics. The inconclusive outcome of two days of trade talks in Stockholm, Sweden, leaves open the question of higher tariffs on Chinese exports to the United States. Chinese Vice Premier He Lifeng said the two sides had agreed to work on extending a deadline for higher tariffs. The U.S. side said the extension was discussed, but not decided. U.S. Treasury Secretary Scott Bessent told reporters after the talks that President Donald Trump would decide whether to extend the Aug. 12 deadline for reaching an agreement or to let tariffs that have been paused for 90 days to boomerang back to a higher level. We haven’t given the sign-off, Bessent said, though he emphasized that the talks had been very constructive. China remains one of the biggest challenges for the Trump administration after it has struck deals over elevated tariff rates with other key trading partners including Britain, Japan and the European Union. Many analysts had expected that the Stockholm talks would result in an extension of current tariff levels, which currently stand at a U.S. tariff of 30% on Chinese goods and a Chinese tariff of 10% on U.S. products, far lower than the triple-digit percentage rates raised in April. The truce in the tariffs war to allow time for talks, agreed on in early May to allow time for negotiations, allowed exporters and other traders to ramp up shipments in hopes of beating any higher tariffs that might follow. The meeting headed by Chinese leader Xi Jinping mostly reiterated Beijing’s priorities for the year, including a need to unleash domestic demand which has lagged, leading to a surge of exports by industries unable to find growth at home. It also stressed the need to promote jobs and prevent a large scale relapse into poverty. The economy has demonstrated strong vitality and resilience, the Xinhua report said. But it acknowledged many risks and challenges. That includes reining in brutal competition that has led to damaging price wars among automakers and some other manufacturers and managing excess capacity in some industries, it said. China’s economy expanded at a 5.2% annual pace in April-June, slowing slightly from the previous quarter. But analysts have said actual growth may have been significantly slower. Even with the hiatus in higher tariffs, companies are feeling a pinch. Industrial profits in China fell 1.8% in the first half of the year and 4.3% in June, according to data released earlier this week. It’s unclear what level of tariffs might eventually be imposed on Chinese exports to the United States. Chinese Foreign Ministry spokesman Guo Jiakun said Thursday that Beijing hopes the U.S. side would follow through on the important consensus reached between Trump and Xi in a phone call to promote stable relations between the world’s two largest economies. But Guo reiterated China’s stance on its U.S. objections to its purchases of oil and gas from Russia, which Bessent raised during the talks in Stockholm, threatening more tariffs. China will take reasonable measures to ensure energy security in accordance with its national interests, Guo said. There are no winners in a tariff war. Coercion and pressure will not solve the problem. China will resolutely safeguard its sovereignty, security and development interests. Elaine Kurtenbach, AP business writer
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E-Commerce
Its hot. Everyone is sweating, and anyone who chooses to venture into the world armed with nothing but natural deodorant knows theyre playing a risky game. But online, the backlash against natural deodorant has begun. When someone tells you their deodorant is natural (but you already knew), TikToker Mads Mitch posted back in May. The comments section was split: Some natural-deodorant defenders loyally stood by their favorites, while others pointed out they probably didnt have goodor honestfriends. @mad_mitch This is satire!!!!!! Im sure you smell lovely!!! pls dont take this seriously thank u original sound – mads mitch For those self-aware enough to know they stink, many have switched back to the hard stuff. I legitimately smelled like onion, one TikTok user said of her natural deodorant journey. Another hopped on the Hoziers Yell trend, writing: Going back to my clinical strength 72 hour secret after a year of convincing myself I didn’t smell while using a million different natural deodorants. @gabriellembeauregard Miss me with that woowoo deodorant for real #naturaldeoderant #secretclinicalstrength Northern Attitude – Noah Kahan & Hozier The natural deodorant waveBig Stinky, as some have called itwent mainstream in recent years after countless articles detailing the supposedly harmful effects of antiperspirants gained traction. Because antiperspirants stop odor by physically clogging pores with ingredients like aluminum chlorohydrate or aluminum zirconium, these ingredients were quickly labeled toxic by natural beauty advocates. Some even claimed they could lead to Alzheimers disease or cancer. Aluminum-free options soon flooded the market, from Salt & Stones popular Santal & Vetiver scent to Wilds refillable sticks. Formulated with natural ingredients like baking soda, shea, and coconut oil, they promised to keep wearers both smelling fresh and toxin-free. The only downside? Most of the time, they dont work. Now, a growing number of people are making the switch back to the tried-and-true: Degree, Secret, Dove, andbetter yetmens deodorants (which, for some reason, always seem to work better) and encouraging others to join them. While former natural-deodorant wearers will be relieved to no longer walk around with their elbows glued to their sides, theres more good news: science has found no definitive evidence that regular deodorants or antiperspirants are any worse for your health than natural deodorants. Ultimately, the deodorant you choose to wear is a matter of personal preference. Just make sure youre considerate of those around you.
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E-Commerce
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